How much are you guys tempering expectations for bonuses? Particularly interested in VP’s.
Our BB group said we are flat from last year fee wise but actually gained share which would not go unrewarded come bonus season. We’ll see, still skeptical.
If I got what I received last year as a last year associate (VP1 now) I would be very happy. Doubt it is that good though.
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Based on the most helpful WSO content, it seems there's a mixed bag of expectations for bonuses this year. Some folks are optimistic, while others are more cautious. One user mentioned that despite a significant decrease in completed deals year-over-year, there's a belief that bonuses will be slightly down to flat compared to last year.
Another user pointed out that those working at bulge brackets might be disappointed if they're expecting their bonuses to increase proportionately with the surge in IB revenues. They also mentioned that the increased salaries/bonuses might be a mirage due to high inflation rates.
As for your specific situation, it's hard to predict. If your group has indeed gained share and this is recognized, it could positively impact your bonus. However, given the overall climate and the factors mentioned above, it might be wise to temper expectations.
Remember, I'm just a monkey swinging from the vines of information. The actual outcome could be different. Keep your bananas peeled for updates from your firm!
Sources: https://www.wallstreetoasis.com/forum/investment-banking/bonus-season-comps?customgpt=1, Analyst Bonuses Summer 2022, 2022 Compensation - What Are You Guys Expecting?
Lol good chat guys
Like 10% for my team
If fees are flat/better than last year they’ll give you a shit bonus under the guise of: “the market is down, we’re saving for a potentially shaky year”
If fees are worse than last year, they’ll give you a shit bonus under the guise of: “markets are terrible, the pool has shrunk”
Either way, bonus is shit
Deal flow has been eh doubt bonuses will be higher than last yr. I’m quitting once I get my shitty bonus in January and moving to PE where i won’t have to worry about this because bonuses are based on management fees
"bonuses are shit, because we're expecting a bad upcoming fundraise" - PE
PE is going to be worse comp wise
The more you work, the more you see the cascade of downturns in things. Banking deal flow is bad in no small part because of overlevered and underintegrated PE rollups, which leads to mediocre returns and poor fundraising, as well as lender workouts, which leads to fire sales and loan losses, which leads to weaknesses in private credit, and so on and so forth. Everything has a cycle, and every dog has his day.
What is the total comp for a VP1 on an average year at an EB? 600k?
Yeah probably about right
That seems light to me tbh but I guess it depends which EB. Third year VPs at some boutiques are close to a mill.
numbers down around 10% from last year at my bank - on the bonus, not total comp.
Just to understand correctly - when you say down 10%, do you mean down 10% from what you got last year or that you expect your comp to be 10% behind what the year above you got last year?
Thanks for sharing. What type of firm are you at?
I’m VP1 at a BB and I am preparing for really bad number. Think my performance has been fine bucket wise.
I'm at RBC; while certainly not a banner year for us, we did less worse than other large banks (typically the case in downturns with RBC and increased our market share). So I'd expect our % decrease from last year to be less than the banks that struggled more for various reasons this year like Barclays, UBS etc.
And to answer the other question, it's 10% less than the equivalent year would have got last year (ie apples to apples)
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