For context, I work at a BB in a coverage group. My bank pays out analyst bonuses on the half year cycle (year ending Jun-30) and everyone above analyst is on the FY bonus cycle (year ending Dec-30). So when comp day rolled around this week, I was getting a stub bonus for July - December as I had just been promoted to Associate.
Not to be ungrateful, but the bonus number they gave me was less than half of what I was expecting, and granted this was a stub bonus, but it was even lower than my 1st year analyst bonus which was 40k. Do they want me to quit so they don't have to fire me? But also if that was the case, why would they give me the promotion in the first place? I will say everyone seemed to also get poor bonuses / numbers they were unhappy with, which does make it feel a little less personal, but it's hard to justify 40k stub bonus as an associate when analysts received bonuses upward of 70k+ just 6 months ago.
To make matters worse they also posed my number in a really shady way (ie. if my A2 bonus was 80k, they said "your 2024 bonus is 100k but we already paid you 80k in the fall, so we are paying you an incremental 20k") which doesn't make sense because they were supposed to be paying me for the 6mo. period Jul - Dec. This was also a stub for my new position not an extension of my analyst bonus? When I brought this up they just maneuvered around the question and said "you have to also consider you are getting a pay raise with your associate promotion"
Decently upset with this figure and that explanation since for the past few months, I was working well into the AM's for 5-6 nights/wk. If I only cared about the $150k / $175k salary then I would be working an easier job... but trying to understand if I am overreacting or being incredibly out of touch. Any thoughts, criticisms or insights would be greatly appreciated
Based on the most helpful WSO content, there are a few key insights to consider regarding your situation:
Low Bonuses as a Signal: While low bonuses can sometimes be interpreted as a subtle way for firms to encourage employees to leave without outright firing them, this is not always the case. In your situation, the fact that you were promoted to Associate suggests that the bank sees value in you. If they wanted you to leave, they likely wouldn't have invested in your promotion. However, the low bonus could reflect broader issues, such as cost-cutting measures, poor group performance, or a challenging market environment.
Stub Bonus Discrepancy: It's not uncommon for stub bonuses to feel underwhelming, especially when transitioning to a new role. However, your frustration is valid, particularly if the bonus is lower than your first-year analyst bonus and doesn't align with the workload or expectations of your new position. The explanation provided by your bank (tying the stub bonus to your analyst bonus) does seem confusing and could indicate a lack of transparency in their communication.
Broader Context: You mentioned that others in your group also received disappointing bonuses. This suggests that the issue may not be personal but rather a reflection of the bank's overall bonus pool or strategy. For example, in some WSO threads, users have noted that banks sometimes use low bonuses as a way to manage costs during tough market conditions or to signal dissatisfaction with group performance rather than individual contributions.
Next Steps:
Ultimately, your reaction is not out of touch—your concerns about fairness and transparency are valid. However, before making any decisions, weigh the long-term benefits of staying against the immediate dissatisfaction with your bonus.
Sources: Stupidly low bonus. Should I jump ship?, Morgan Stanley Analysts Reportedly Walk Out After Receiving Low Bonuses, Fired as 1st year analyst?, WB Bonuses, Reflecting on my Investment Banking Experience: Lessons Learned
Everyone’s stub should be the same. At least it is at my bank. Do you not have promo’d friends you can ask?
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