IS the GS Discount a myth or a real thing for post MBAs?

Hey fellow monkeys, 

the title says it all. Was wondering if post MBA associates, in particular from M7 schools, get paid less compared to other BBs. The consensus seems to be that a decent post MBA A1 can pull in on average around 300k per year (it's probably somewhat higher at EVR and CVP and somewhat lower at places like WFC). Would appreciate if you all could share some experiences and numbers around the GS discount. 

Thanks y'all 

Comments (20)

  • Summer Associate in IB-M&A
Mar 23, 2021 - 1:37pm

Extremely real. Starts from your internship pro-rated pay. Also, doesn't matter what school you go to, pay (bonus) is determined by work ethic and relationship building (how much your liked). 

Mar 23, 2021 - 1:47pm
DingDong87, what's your opinion? Comment below:

OP here, thanks for the answers. Would it be possible for you to put some numbers behind your statements. What does a top bucket GS A1 make per year. 250k (???) or is it even less than that? I am about to summer at a different BB this summer and I am trying to assess how much $$$ one would have to forgo for the GS name on the resume. 

Mar 23, 2021 - 2:09pm
IncomingIBDreject, what's your opinion? Comment below:

https://www.wallstreetoasis.com/forums/does-gs-blow-for-post-mba-associates-now

Array

  • Associate 1 in IB - Gen
Mar 23, 2021 - 2:30pm

ASO 1 bonuses last year for GS were under $100k. This was after a very profitable year for M&A and a good year for the bank overall (with volatility boosting trading revenue). Other bulges were 20k to 30k higher. EBs were more like 160k-180k. The gap gets bigger over time as bonuses grow. Now imagine a bad year.

Worth noting that this is a recent thing. GS used to pay very well. Solomon realized he could switch to the Big 4 model where you're "paid in brandname". I.e you get shafted. 

Most Helpful
  • Intern in IB - Gen
Mar 23, 2021 - 3:44pm

Why is this guy such a penny pinching asshole? Zero long term business sense.

  • Associate 2 in IB-M&A
Mar 23, 2021 - 4:10pm

The real spread is BB vs EB, but GS is the low even for then the bulges. AS1 bonuses for top bucket was like 100k cash and 10-20k stock with low/mid in the 100k range or less (lower than analysts at EBs). Heard other numbers from MS/citi/JPM/etc in the 100-140 range but more heavily weighted toward the low end.  Top EBs were in the 170ish-190 range.

  • Associate 2 in IB - Cov
Mar 24, 2021 - 2:18pm

At the risk of doxxing myself

GS summer assoc $125k vs 150k street

GS sign on $50k vs $50-65k street

GS AS0/Stub $35k vs $50k+ street

GS AS1 $80-125k vs 100-150k bb vs $160-220k EB

GS AS2 $100-150k vs 125-175k BB vs 200K+ EB

GS AS3 $150-225k (street BB) vs 225-300K EB

GS will also pay 15-20% of the above in deferred equity compensation, so it's even worse on a cash basis vs the cash heavy EB comp.

Mar 24, 2021 - 2:45pm
DingDong87, what's your opinion? Comment below:

Holly shit, this is way worse than I thought. Especially considering that the post MBA transition to the Buyside is less likely... I wonder how long they can sustain paying below street, at some point they must be loosing out on top banking talent. 

  • Intern in IB - Gen
Mar 24, 2021 - 4:43pm

"We can save shareholders tons of money by exclusively recruiting Pace MBAs and paying them $50k! This is the type of financial savviness that'll propel Goldman Sachs into a new decade of profitability!"

- David Solomon

Mar 24, 2021 - 2:43pm
Nightman Cometh, what's your opinion? Comment below:

As real as the streets

Dayman?
  • Associate 2 in IB-M&A
Mar 27, 2021 - 5:33pm

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