IB Associate All-in Comp 2024
Hi guys, wanted to refresh on the all-in comp for IB associate these days. Are they still higher than MM PE Asso comp (275-325k)?
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My all-in ASO1 comp at an MMIB paid out in Dec 23 was:
Base: $175k -> $200k
Bonus: $100k cash, $20k equity
This looks better than most PE comps... especially given it was 2023
255k cash is not better than most pe comp unless you’re talking about LMM pe
Was that a bad bonus for you or generally it was bad last year? Associates in my previous shop got 100%
Spoke to a recruiter recently that told me my all-in expectations of $275k ($175k base) for ASO 1 was “high”. I called BS but would love to get some other data points.
$275k all in is reasonable, maybe a touch on the high end at a BB. Associate 1’s make $175k base… $100k bonuses are reasonable. Most of us made in the $80k-$100k range.
It’s worth noting that pay for associates was all over the place across the street this year, so depends on where you’re applying.
agree $275k is reasonable. too many people have forgotten about the base bumps and think 100% bonus target is common at AS1/AS2 for BB - it's not and never has been in % basis (before or after base bump)
Damn associate bonuses seem to have tanked in recent years. My first year I had a $215k cash bonus. Tho tbh base was $150k so slightly lower
Jeez 215k cash? Was this blockbuster year 2021 or pre-Covid? Definitely not at a BB either! Congrats
Yes BB ASO bonuses have been awful since ~2020, and last year was even worse. At my BB in 2023 the “average” associate bonuses were:
-ASO1: $40k
-ASO2: $70k
-ASO3: $90k
You must work at BofA
Paying bonuses like that in IB should literally be a crime.
At my EB (known to pay near top of street) all ASO1s and ASO2s were under $400k
Are bonuses at EBs typically all paid out in cash at all levels? Or do those firms use some deferred comp as people get more senior?
If EB is public, highly likely at some arbitrary threshold stock is part of your bonus and deferred. Threshold depends on the firm. JEF the only one I know that pays all cash (but nasty clawback)
$175 base and $225 bonus at my EB. Seems like BB vs. EB difference was actually real in comp #s last year. Full disclosure: hate the term EB (try not to be a hardo) but seems useful on this forum
it's been real for over a decade. Guggenheim comp is head and shoulders better than JPM/MS at AN/AS level.
Evercore a notch above gugg comp typically.
Is this for Asso 2 comp?
That was for ASO1 year
Seems in line. At a MM IB, $175k base with a $140k bonus
How much was stock vs cash
All cash. Company is set up as a partnership
Mind sharing firm? Also at a MM, my expectations are similar but slightly below on bonus.
wow yes pls would you mind sharing firm? had no idea MM was this good..
MM still at $175k base. That’s atrocious
My argument/ view here is that for Analysts finishing up their 2 years in banking and leaving for PE, the true comp for their Assoc 1 PE salary isn't a "fully loaded" Assoc 1 IB salary because of how many banks either have a 3rd Analyst year before Associate or an "Associate 0" role (effectively Analyst 3).
For example, at my former EB, the full Assoc 1 salary may be in-line, or slightly higher than, my current large cap PE Assoc Salary, but I would have had to do another year as an Analyst, so the better comp would have been the Analyst 3 full year comp, and compared to that, my PE salary is meaningfully higher.
Salary, yes… but what about TC when factoring in A3 bonus, A2A signing bonus (call it $40k) and then your stub bonus only 6-8 months down the line (call it another $60k). I’d think the TC is probably not too dissimilar but you’re making a fair point.
I'm not sure you can include both the A2A signing and Assoc 1 stub bonus in the "Analyst 3" salary, especially when you're assuming the full An3 bonus as well.
I would include the Assoc 1 stub bonus in the total IB Assoc 1 Salary, which I would compare to the total PE Assoc 2 salary.
Thinking my bank vs my fund:
Analyst 3 Base - $140
Analyst 3 Bonus - $110 (same YoY growth as An1 to An2)
A2A signing ($50 vs your $40 above)
Implied TC: $300
Illustrative PE TC: ~$355 (this is calculated using the midpoint of the TC range they provided me at signing plus signing bonus - not providing full breakout here for anonymity).
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