Is taking step back from VP to Associate worth it?
Currently a VP1 at no-name boutique. Been in banking for 6+ years and have barely any closed deals to show for it. Goal is to be at a larger IB with better recognition in the market, but lateral VP market is tough right now. Lack of closed deals doesn't help. Seems like the Associate market is much easier to lateral to. Is it worth it to do another few years at the Associate level at a better bank with the goal of sticking to banking long term? I just feel like I'm going nowhere at my current shop and the more years at VP with lack of closed deals seems to look worse imo. Anyone go through this before?
It’s worth it if it gets you to a better name brand. However, I think the wall you’ll run into is convincing seniors at those target banks that you’re willing and happy to take a step down. Even with the best intentions they’ll probably find it hard to believe you’re willing to take a title and pay cut or - even if you did - that you’d be as motivated as someone younger
I know it sound pessimistic but this is based on what friends of mine have said when trying to make similar moves
Agree with this, but OP I think you can help fight this concern by speaking to your desire to get higher quality deal experience and awareness that being successful in banking will depend on it as you become more senior. So it might be a temporary comp / seniority cut, but you’re in it for the long run.
I get it. It might be worth noting that where I currently work, I am way below market rate for the level I'm at, so even taking a step back to an Associate at a good firm would be more than I'm making now. Just wanted to add that detail, but what you're saying makes sense.
The answer is yes, it’s worth it but not without considerations.
If you have little deal experience, do you feel like you will be behind at a better shop against peers with presumably more experience?
VP promotion can be gating milestone for progression at many banks. Key items to consider:
- will you be lateraling to same industry focus?
- how rigid is the promotion structure?
- will you have 1,2,3 years of associate position remaining?
- if 1, (or 2) are you confident in being up to snuff for VP promotion at the new firm? Can be tough to win MD’s over in just a year. If for any reason it takes a while to learn the industry, how they do things, or their trust it can make things hard. Harder if your associate class is strong. Worst case scenario is you don’t get promoted - when you had already earned the title once!
- if 3, is it really worth it?
- bottom line if you are still willing to bust it like an associate, you’ll probably get promoted and everything will be gravy
Good take and would agree. Did this from D (MM) to VP2 (EB) and, while it is challenging at times from an ego perspective, it was probably worth it. Eventually got the Director “back” and traded up brands while having much better exit opps / alternatives as well as better perspective at said firm.
The key is to make a good first impression and deliver very solid 6-12 months. Everybody knows the “homegrown” guys & gals and you’ll be the new kid on the block, but impressions last — good and bad.
Would also totally disagree with the first comment, that seniors won’t get such a step — it’s very common and the usual quid pro quo is brand for title… not really rocket science. Just tell them that you are ambitious and want to move to a very active platform to gain more exposure to industry-defining deals — they’ll love it and also important to underline that you can deal with tougher deal flow / working hours. That’s rather the question they will ask themselves when plugging you between their analysts and VP/Ds…
Fingers crossed!
What comp do you currently make?
Definitely worth it if you haven’t gotten and aren’t getting good deal reps. Early career real experience at the front lines trumps everything else. Can’t be a good senior banker in the long run if you haven’t been in the foxhole closing deals.
Fuga nesciunt pariatur possimus blanditiis autem qui cumque molestiae. Neque quam hic sequi tempore officiis aut.
Odio dignissimos exercitationem voluptatibus dolor cupiditate. Molestias eius soluta molestiae assumenda vero. Qui esse est tenetur aspernatur. Rerum saepe vero est quia ipsam quis ea. Provident ipsam qui blanditiis mollitia impedit nam.
Dolores et adipisci ad dolorem sed molestias impedit enim. Est consequatur voluptate et repellat. Iusto iure non aut culpa natus excepturi voluptates. Quisquam neque facere tempora voluptatem et commodi. Inventore consequatur autem voluptatem aperiam officia totam. Quis distinctio corporis explicabo fugiat alias consequuntur quasi. Neque illum eius voluptas voluptatem ab qui facilis qui.
Inventore harum consectetur repudiandae dolor neque. Sit enim nihil ea et ut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...