Is $100K Base + 70% Bonus Offer for Associate I at a MM Blasphemous?
So after ~2 years working in FP&A I've finally managed to secure an IB offer for an industry group at a bank in the realm of Stifel/Harris Williams/BMO. The group I'd be in is an average industry group at the bank; not our strongest practice, but by no means a sleepy group.
The way the role was described to me is that Associate I is basically the new street term for Analyst III, which implies to me that potentially this firm as a whole pays Associate 1s as Analyst 3s still despite the change in nomenclature.
My question is considering I have no prior IB experience, still need to get series' 7/79/63 and I'm getting to start at Associate with a $170K comp package, am I still getting lowballed? The only other interview I got was with a UBS/WF/RBC/Truist type bank and they were going to bring me in as an Analyst I. My hope is that upon promotion to Associate II my comp increases to $150K base, but my fear is they're seeing this more as getting a cheap offer off on me because of my background and wont mark my salary to market after Year 1 and beyond.
Would really just like some input on whether this sounds standard and if I should be expecting a $150K salary by the time I hit Associate II. I'm going to accept the offer regardless - it's the best I'll get with my background and can always lateral in 2-3 years or try for LMM PE - but I would just like some input on whether I'm getting screwed or not.
That sounds about right. If anything it's a solid offer--I've seen plenty of people with your level of experience get first year analyst offers. If it's a legit MM bank (like the ones you mentioned) I'd expect comp to right size to market once you're a "real" associate. If it's a joker broker anything goes.
This was exactly what I was thinking. Like realistically not to down play their FP&A experience, but it really is just not comparable.
idk if it's market but sounds like a lot of money good job on securing the offer bro
Great job! Congrats! Don't look back. Be grateful, leverage the opportunity and a few $$$ won't make a difference in the long run.
Congrats on the offer! I'm starting out in F500 CF this summer after striking out in IB FT recruiting. Would be interested in hearing about how you were able to land the lateral offer as I hear it's nearly impossible from FP&A without going to MBA first.
Key to me is always keep your end goal in mind and spend every day working towards it. When I had downtime I would put together forecasting analyses and practice pro forma three statement models looking five years into the future for the company, using our own available 10Qs, just for practice and so I could technically put it as a bullet point on my resume that I did this type of work - even if it wasn't necessarily related to a specific assignment. Plus I CONSTANTLY nagged the Corp Dev guys to let me pitch in a little bit to something they were working on, or at least to let me see some of their past models and help explain to me their way of looking at deals. Additionally, I did what ever I could to be more involved on cash flow forecasting type of assignments or internal IRR analysis projects for strategic decisions. By doing these things, I was able to come up with some slightly embellished but overall honest pertinent experiences to put on my resume. Things like "collaborated with internal Corp Dev team to incorporate post-merger adjustments into future cash flow projections, ascertaining EPS estimates post-transaction" and "Stress tested company three-statement pro forma, demonstrating the impact to EPS, liquidity and and credit profile under best case, base case and worst case scenarios". Bankers love to see when you know the lingo and can talk about things like accretion/dilution - it makes them feel like you "get it" and truly understand what IB is, versus being 1 of 1mm candidates who just applied to the job without having the faintest idea of what bankers do.
Outside of that just hustle your ass off, make sure your resume incorporates as many IB Buzz Words as possible (pro forma, EPS, accreitive/dilutive, IRR, etc.). Oh, and have a great, great story for your passion for IB. A good story can absolutely overcome a lack of pedigree. Best of luck!
Really appreciate the detailed response- definitely helps a lot. How often were you networking? Were you only shooting out cold emails when you saw a position open up on linkedin or were you just sending out emails constantly over the 2 yrs?
Good job on securing the bag man! It’s good to ask questions like this but I’m sure you are payed well for your work.
Take the offer. If the firm doesn't bump you to street pay after a year, you can lateral to another shop. Have seen a ton of ppl move to another shop after a year of experience..
Most people end up breaking in as analyst I, where they come in at 85+45 or whatever is the going rate these days, so you are certainly not getting screwed. I came in as analyst 1 after over 2 years of work experience. Depends on what your background is, but I’d be more inclined to say the opposite. Seems like you’re lucky!
That’s more in line with tier 2/3 LMM associate 1, but you can always lateral if the comp disparity gets too wide. Banks are always looking for good associates.
Is this at one of: Blair, Stephens, RayJay?
Why do you ask? Is this standard AS1 comp at the aforementioned?
dude take this down you are 100% identifiable
I have heard of this being closer to standard comp in non-major cities. but also he has no banking experience so I am surprised he got hired as a Associate and not an Analyst.
Seems quite low for AS1. Seems unlikely that it would be HW, they pay street and start higher. BMO usually pays street salaries and shit bonuses, but I would have expected at least $125K base.
I'm fairly confident the bank I'll be working for pays street in normal circumstances, by all accounts. I think it's just my unique situation and a reflection of the fact that I'm coming in with no IB experience. If I had to guess, corporate gave them permission to hire an Associate, but I really hit it off with them during the interviews so they gave me the job as an Associate, but aren't going to pay me $250K right off the bat with no prior IB experience and not even being licensed. The bigger question to me is when it's comp meeting and time to discuss promotion to AS2 next year, will they roll me to market or give me a modest bump because they figure they already got me cheap.
Others may disagree, but I'd have an honest conversation about compensation (and maybe get something in writing) before I joined then. There is no guarantee that you will necessarily get bumped back to street if you prove yourself worthy of AS1. I've been screwed over before and know several others that have as well.
Did they give you a signing bonus, to at least help close the comp disparity for your first year. Know at analyst levels that hw gives signing bonuses at 50% of regular ft analysts. Would assume similar policy for asos
This sounds about right if you aren’t in NYC. Plus you should be happy you got associate w/ no IB experience (I’m assuming you don’t have MBA). I would also expect comp to ramp up pretty quickly years 1-2.
If you're upset just stay in FP&A king xx
Nor upset in the slightes - if you knew my personal background story and knew where I started from, you'd have thought obtaining this opportunity would be nearly impossible. I'm completely stoked on it. My curiosity is mainly because I really like the group and think I would do quite well working with a team that I respect so much, in an industry that I do have a passion for. Thus I'm mostly interested in whether or not my salary will roll to market once I get one true year worth of IB experience. I would hate to trade off the culture, lifestyle and cultural fit of this group for anything - but if it gets to the point where I'm making $200K as an AS2 and recruiters start offering me ~300K comp packages, it could get tough.
Well this for sure isn't BMO lol
If you're in NY, CHI, or SF I'd say for A1 at the type of firm you described that's pretty low since a standard ASO1 offer is 150. It's possible they are doing some kind of trial period with you given your background but with the explanation you gave that the firm pays ASO1 as AN3, I'm at a loss for an explanation. That's the first I've heard of that
I definitely agree that at face value, my AS1 comp is below market (and I believe way lower than that of those at my firm who did two years as an analyst and then got the promotion), but my theory is that corporate HR gave them a hiring mandate to bring on an associate. They liked me the best despite my lack of experience and wanted to hire me, but I'm just point blank not an IB level associate. So it sort of sounds like they called me an Associate I because that's the position they need to fill per HR, but the reality is that they don't exactly consider me a true Associate yet. They did mention the Associate II promotion is substantial, I just hope that means $150K base and not a $10K raise.
I see and looks like it is sort of a "trial" thing where they aren't paying you up to mark because you 1) have no IB experience and 2) were getting paid way less where you came from. It sucks that they're doing this given most Associate salaries are standardized but if this is your chance to break into IB then obviously it's a great opportunity. I hope that you're able to level up to the normal Associate payscale for ASO2 that's street level if you perform up to mark.
Just take it. IB associate > king of FP&A imo
Seems obvious, but he'll be grinding just as hard (probably harder b/c of the learning curve) as other associates at the same level. And he'll be getting paid significantly less.
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