Hypothetical IB questions- Prospective IB applicant
Hi guys!
I just had a few rather odd questions and would appreciate it if current IBs or those with lots of knowledge about the industry could answer them.
1. Hypothetically speaking, If an applicant lands an IB FO job would they be able to amend the terms of their contract, or add something into it? Some examples could include: for someone working in London getting paid in USD and the same amount as a NY IB would get or getting an extra 10K allowance, getting guaranteed progression within the firm to the top position, getting the bonus only in cash and no stock compensation, etc. (These types of luxury demands.) Do you think anyone could possibly request such demands, and what do you think the applicant should be bringing to the firm to ask for such demands? Because I'm sure they'll probably kick the average applicant out of the firm for asking such things, what unique things do you think should be brought along to ask for such things?
2. is it possible to transfer between different locations of the firm for example from London to NY, or HK?
3. If hardly anyone will reach the position of MD and spend their entire careers at the VP position max then why do people opt for IB jobs. Sure a VP could make a million or two, but the MD is the one making the big bucks, and asuming the employee knows they can't ever reach that position why would they stick with the firm for so long?
I know these questions might seem really cheesy or stupid, but they were just a couple of things I wanted to know. Hope you guys help
Thank you!
Good questions. Dont worry about stupid questions. You MUST get these straight before you commit your youth.
1. Not that I've heard of. Getting paid in another currency is probably impossible due to tax laws and such. Promotions at junior level are usually somewhat guaranteed if you don't mess up big time; but having them formally 'guaranteed' in your contract is highly unlikely. Bonuses for juniors are usually all cash; seniors almost always get some sort of stock compensation but that's a huge variable - if you're super valuable to the firm, it's usually discussed over conversation and thus there are less norms. Extra allowance more than your peers is probably impossible - being paid in advance possibly.. if you can demonstrate the need due to your situation. In general, luxurious demands like you mentioned are rare, if not impossible, at the junior level. Juniors are easily replaceable - if you're being too difficult, there's someone else that's willing to take your place on less demands.
2. Yes, possible, especially if you are part of a firm that has some sort of formal mobility programme. Otherwise, still possible but depends highly on relations/business need.
3. Most people see IB as a trampoline to other careers. PE, corp dev, HF just to name a few. I don't think many people 'stick with the firm' for long if they see no room for promotion. Firms aren't going to keep an analyst or associate for periods lasting way longer than the average term if they arent worthy of a promotion. Back to the point of being easily replaceable.
Thank you so much! Honestly, I've been listening to a few interviews with former IBs and they've had a significant impact on my decision. All things considered, IB is still where I want to get into but probably for a short period of time. I have been trading stock and commodities for the past couple of years and have gained very good returns so I thought I could use that to my advantage and get a few amendments in my contract if I were to be hired. Will try my best to set up my own HF in the next couple of years, but considering how tough that has become now, I don't know if that's a logical route to take as well.
lmao say that when you are raising capital you legend
Impedit doloremque voluptatibus deserunt voluptatem id et. Voluptate sed iusto id reiciendis. Unde non veniam et eius itaque sint. Deserunt molestias veritatis perferendis consectetur qui consequatur. Maxime nam eum quia ut molestiae rerum sit quia. Et molestiae non vitae repellat sint quas animi.
Odio laudantium possimus iure aperiam. Ex odio praesentium laudantium mollitia. Alias aut blanditiis hic assumenda rerum est.
Eius rerum modi molestiae quasi assumenda dolor placeat. Eum saepe ea illum in quae nostrum velit. Vero qui voluptatem quia natus repudiandae. Eveniet ipsa adipisci quis sit. Atque voluptas eos inventore.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...