Getting canned in IB? What does it actually mean? IB vs. PE comparison

Hello WSO: I understand that the IB promotion from VP —> Director/MD is quite tricky and quite political. What happens when someone doesn’t get promoted?

I know they get an insultingly low bonus and will likely leave the firm, but can’t the VP theoretically just continue to work at the firm and just keep the VP title? Or will they officially get fired at some point? What is considered getting “canned”? What percentage of people who want to go VP —> Director/MD actually make it?

As a side note, I’ve also been reading threads about how PE associates get canned from the associate —> VP jump, and it’s very brutal. I wonder if getting canned in IB is more/less brutal than getting canned in PE.

Thanks for any input!

 
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If you made it to VP, you're likely a pretty competitive person and care about your career. If you are underperforming and your group does not see you as a long-term fit (but the bank is still doing well), they'll typically give you a nudge that you should look for other roles. As long as you don't cause any actual issues, you can likely continue on for another 12-24 months, doing mediocre work and receive low-to-mid bucket bonuses. Most people in this position will see the writing on the wall, are prideful, and will restart their career elsewhere. 

 

Probably depends on the group / firm. For example, in my group at a BB we have a director who has been in the role for 7 years. I don't think he got promoted this cycle either so on to year 8. No idea what his bonuses have been but probably not great given he's not moving up and is in a lower activity sub-vertical. I've never heard of anyone getting fired in IB at this firm aside from insider trading and related issues or serious HR violations (sexual harassment and the like). Seems like you could stay in the same role for a long time if you wanted to.

 

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