IB Hours with Credit Pay - BB Dilemma
Greetings all, first time poster. Having quite the dilemma atm so hoping for some feedback.
For undergrad, I attended a non-target liberal arts school with few alumni in banking/PE. When applying for junior summer internships, I managed to land a role at a prominent balance sheet BB within their Credit division. Pay for a Summer Analyst was flat at a prorated $75k base (with opportunity for overtime), which wasn’t optimal but it was my best option. This division sits adjacent to their client-facing revenue generating business lines. Hoping to work in NYC and in IB, I sought to work for one of the IB Credit teams. Most of these teams focus on back office servicing/portfolio monitoring of existing loans, but I managed to land a role on a LevFin team that does underwriting/deals. I really enjoyed my summer internship, as my hours were ~50/week and I still got deal experience, being staffed on an LBO. My team was also very encouraging and supportive, and I liked them all as individuals.
Knowing that my program keeps An1 salaries at $75k flat (no differentiation by product line or city, I make the same as mortgage lender Analysts in Arizona), which is obviously low by NYC standards, I networked very hard at the end of the summer to try and land a full time gig elsewhere. The lateral market was tough and I dropped the ball in the only Superday I was able to secure with a competitor. The other Summer Analysts were able to secure IB exits. Thus, I accepted my return, which brings me today.
Just started back on the desk for my LevFin team and I have noticed an evolution in the responsibilities/culture of my team, which is more defined than last year. We now nearly always hold the pen on the model for non-investment grade acquisition financings and many LBOs, in addition to developing key credit risks for IC approval of deals. While I am very grateful of this opportunity to enhance my modeling abilities, which will serve me well down the line in IB/PE, other elements of the team are frustrating to me. Credit has also mandated that I help with portfolio monitoring in addition to underwriting work, which further adds to the hours (while not really advancing my skill set much).
My VPs and Associates have insisted that I will be working full IB hours when staffed on a deal, with the usual demands (have corporate phone on me at all times, never take more than 15 mins to respond to an email, be expected to cancel personal plans on the weekend at a moments notice). I have no problem with the hours themselves, but I have a major issue with doing these hours at the current compensation level. As stated, I got a $5k signing bonus with $75k base (with my bonus next year capped at $5-10k due to Credit division policies) while AN1 in the IB division pulling similar hours gets a $10k signing bonus with a $110k base and $30-$60k bonus. Given we hold the pen on these models and do deal work (and we do much more work than all other Credit teams in the division), this disparity does not seem fair. As is, I am spending over 50% of my post-tax income on a crappy apartment with 2 other roommates, which I don’t think is a reasonable trade off for these hours.
Thus, the dilemma. Once I am actually staffed, and working IB hours (the current An2s are on multiple live deals; one mentioned to me how he has pulled 4 2am nights in the office in a row), should I approach my MD/HR for a raise, and if so, how? Otherwise, looking to lateral to a similar but client-facing IB team ASAP (same hours but with fair comp), but given I have just started on the desk, would it be too hefty of an assumption to assume I can do that before 6 months? Should I focus on lateraling in IB before focusing on PE recruiting (already had 1-2 headhunters for PE reach out)?
Sounds shitty. US, CAD or Euro bank?
US BB
Sounds like BofA or JPM or likely Citi.
I would absolutely not go to your boss and ask for a raise. Are you insane and have zero social awareness? You are a newly hired analyst who even interned in the group and right away you’re going to say the responsibilities you knew you’d have are too much and you deserve a raise? Seriously dude?
Instead accept your current lot in life and work hard. But in parallel start recruiting for IB and PE roles.
And when you craft your story, stick to the truth.
You went to a weak school, but developed a passion for finance during your college years. You reached for front office roles, but fell short and were only able to secure your current credit underwriting role. While you’re appreciative to have found something in this competitive financial climate, and feel fortunate that your current credit role gives you responsibilities beyond a typical middle office role, like modeling and structuring, you still are exploring the chance to move to a more traditional banking front office role.
Maybe say your current bank has promised you that you can get a shot at front office once you complete your “two” year analyst stint, but you’re motivated to opportunistically look around now.
maybe BAML still pays $75k - I think JPM / Citi are higher for credit at analyst level
Thank you for your advice, I am absolutely taking note of it
“Are you insane and have zero social awareness” 😭😭
Hi Jay - just PM'd you.
Since you accepted the offer (knowing the comp) and are currently working/getting good deal experience, I would stick with it for one year. Also, you know that the lateral market is tough right now, so definitely do not ask for a raise within your current group or else that could backfire and you could be out of a job if they don't like you. Now, after the 9 month period (expect job search to last 3 months before starting new job), update the resume with all of your experiences and start looking. It will be in 2025 and companies will likely have more budget to hire. Also, stick to debt/sponsor stuff: Leveraged Finance / Debt Capital Markets / Sponsor Finance: Underwriting/Portfolio Management as that will be the easiest transition.
“this disparity does not seem fair”
oh do I have news for you buddy….
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