How is bonus split determined (ie cash vs stock)
Can someone shed light on how most banks decide the split between cash vs. deferred stock for bonus? Is there a cash ceiling? How long does it take for stock to vest?
My bank does 100% cash so not sure how others do it
Bump
Following as well
Most ppl here are college students so they won’t be able to answer lol
Fwiw my firm is straight cash all the way to partner. My friend at a BB (gs/ms) tells me that starting from VP its stock after a certain $ bonus that threshold will depend on seniority and level
what firms are straight cash?
Bump to hear from others.
My firm starts equity comp when you surpass $350K all-in. Stock portion is usually 5-10% of total bonus at the VP level.
Very similar. We start deferred comp at around $300k with a mix of deferred cash and stock. It's been ~5-10% of total comp here, so closer to ~10-20% of bonus. 3 years to vest.
Wasn't a cash ceiling but throughout my associate years deferred comp was 20-25% of the bonus total
Go ask management. How the hell would we know lol?
I don't think MDs really even know the formula for how they're paid (at least the public ones)..
Edit: vesting is over 3-4 years. Stock portion goes up as you get up in tenure. Maybe up to 50-60% depending.
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