How do investment banks allocate analyst and associate headcount to different groups?
Does anyone know what the process is for how groups get junior banker headcount allocated to them?
For example:
-- Do a certain number get allocated to groups them based on the # of MDs in the group (i.e. X analysts/associates per MD)?
-- Is it based on projected revenue or deal count (i.e. this group is projected to do $X million in fees and/or Y number of deals this year so we give them Z analysts/associates)?
-- Do groups get a budget and can have whatever combination of bankers at various levels they can afford to pay (i.e. 2 VPs at $400, 3 Associates @ $300 and 4 Analysts @ $200 vs. some other combination like 4 VPs @ $400, 1 Associate @ $300 and 3 analysts @ $200)?
-- Some combination of the above or something totally different?
I have no idea which, if any, of these approaches are used. Any insight would be greatly appreciated.
Thanks!