Background: Non-target US undergraduate >> approx. 2 years at Big 4 transaction advisory (non-US office but in a major financial center) >>just entered 2nd year at US-based MM bank (HW, LI, Baird, WB), also in the same city as Big 4 stint.
When I was hired at the bank I currently work for, the offered base salary was lower than the market but not by too much. My 2017 bonus was ok percentage wise, but given that other banks in my region have been performing relatively well and from what I have heard from my BB counterparts, I am assuming that overall 2017 comp was higher forBB.
Moreover, after reading about (1) how analysts at BBs/EBs/(probably) even my the same firm I work for have gotten their base pays bumped up to the 95k range (including the city I work in), and (2) bonuses (overall and in my region) as a percentage of base have been at least in line with my firm, I am more inclined to think that I am currently being significantly underpaid.
I’ve been given taps to interview at different firms (IBD/PE/HF), but given that I was originally planning to stay two years at my bank and the fact that despite a handful of deals ongoing, I have no closed deals under my belt yet, I am in limbo.
tldr: Given that I am being paid rather significantly under market, should I lateral despite only staying for barely over a year and having no closed deals on my resume?
Thanks in advance.
(Edited for clarification)
Deleted
Thanks for your comment. Trying to be as ambiguous as possible because the overseas operations of US-MM banks are quite limited.
We source and run deals out of our office (as do the rest of our non-US locations), but my lack of closed deal experience is highly attributed to the fact that a high share of our engagements are cross-border buy-sides (though you are right when you say that the US and London offices close significantly more deals. However, the economics do differ in the sense that the US/London office’s of our and similar firms tend to employ a significantly larger number of employees the regional offices; i.e. large bonuses at regional offices are possible because the pool is split between only 10-30 people vs. hundreds, so bonus variability is, from what I assume, higher at regional offices).
Essentially, I am asking whether it is worth exploring outside opps because I am getting paid less than my industry peers, or should I stay at my current firm for the intended two-year period.
Thanks.
Are you considering your industry peers your U.S. colleagues or similar banks in your city? If it is the former then you are likely not underpaid, that's just how your local market is. If you're saying that other MM bankers in your city are getting paid significantly more than maybe you should consider a move.
Also, all things equal I don't think regional international satellite offices are great places to get a complete analyst experience. The bread and butter of every single one of those banks you listed is MM sell-sides (I would guess it's 80%+ of fees) - cross-border buysides are one of the least likely deal types to result in fees/deal experience. You want to be at a place that is strong in originating and is a focal point of the platform. If you're in Switzerland that is something more like UBS/CS, Germany DB, Canada RBC/BMO, etc. At my EB the international satellite offices (exc. London) are really just there to facilitate deal making from the U.S./U.K., their analysts are not getting anywhere near the experience that the NYC office is.