Hi all,
I've got an intern offer lined up at a top EB in London, but also a few other offers at some BBs for summer of next year. Upon looking at my contract, it all seemed pretty standard with the exception of perhaps the comp. For the 10 weeks, the comp works out to around 8k with no allowance for accommodation, whilst I've heard at other places this is usually 10-12k with accommodation allowance.
Is this normally the case for EB's in London? Should I take this offer which I feel is the best developmental opp in favour of going somewhere for considerably higher comp next summer? I just feel like the difference is quite significant for a 20year old, so any help on this matter would be much appreciated.
I think that £8k for 10 weeks is fair enough for an EB internship. I would take it, it is £3.2k per month aprox. which is 38.4k/year. Truly, it is not a hell lot of money but it is just an internship, you´ll be able to live good even in London since you should focus on working you ass off at this stage...
I mean, I've always read that top EBs are in the highest class in terms of comp but I guess that may only apply to the US? Yeah you're right, there won't be much free time to spend it, but £2-4k in difference in savings for one summer is quite large at this stage.
You shouldn't be thinking about comp for an internship as long as you have enough to get by.
I'd largely agree, this summer I fortunate enough to spend it at a bank with quite minimal pay but it was still enough to get by. However, from a student's perspective £2-4k is quite a large difference.
Banks typically pay interns the pro-rated base comp of first-year analysts, but base comp is all over the place in London at the moment so there's difference between firms. places with lower base comp will make it up with a higher bonus (assuming similar profile). I wouldn't care about the difference in comp, go where you think you'll have the best experience, money will follow. 4K is utterly irrelevant in a career in finance.
Standard base is 50, and the places that I know that pay below market certainly do not make it up with bonus...
Intern salaries, however, are all over the place. BBs pay pro-rata, a lot of the other banks (MMs, regional banks etc.) would pay crap (below 30 pro-rata), but still enough for you to live on. I was always with the impression that EBs pay interns pro-rata, but based on OP's offer, not the case. However, for full-time base is market or slightly above, and bonuses are usually very high.
To answer OP's question and reflect the sentiment of others - it's an internship, so this shouldn't be the deciding factor. If you have an opportunity that pays better - take it. Otherwise, take this one. You won't be starving, and a lot of banks pay a lot less, so wouldn't say it's a ripoff. No need to be greedy at this point, plenty of time to make the big bucks.
I was also under the impression EBs paid pro-rata but I can say for London definitely not. Could you confirm EBs change summer to full time?
I have other opps that pay better, but everything apart from comp is telling me to go for the EB over BB.
I'd definitely go with the BB and higher pay. Contrary to what some might think, how companies treat their interns is similar to how 1st year analysts are treated.
My perception is at a top EB you'll learn a lot more, albeit have to do a lot more than at any BB right? Would training not be better and more tailored at the EB?
I don't think I know any EBs in London that pay interns below 50k pro rata. My guess would be Rothschild or Lazard? Or the weird 6-week Greenhill internship ...
I thought the same but I can assure you it's not the case, hence the thread... Not sure about Roths but Lazard is street.
Your priorities are completely wrong at this stage. I've been in your position and understand that 3-4K is a lot for a final year student. However, the difference between a full time IBD salary and something non-IB will be much bigger. Getting an EB brand on your CV will enable you to maximise your chances of getting a IBD full time role. When choosing between banks, things such as conversion rates and learning experience should be top of the list, not the intern salary.
I agree with you and I've expressed a similar sentiment, I just thought EB's paid at street level and was curious if anyone knew.
Oh right, sorry, I misunderstood - yeah it's below comp, but it's not too unusual. I've seen contracts at pretty nice boutiques in London (not elite boutiques but top-of-their-industry type banks) that have lowballed on the pro-rata salary.
Curious, why are London banking salaries so low? NYC and Hong Kong blow London comp out of the water, with the latter offering crazy housing allowances.
Perhaps to attract more people to head over there? Just a guess.
Hmm, the low tax rate in HK would be good enough reason for a lot of bankers to relocate there. In my BB class, the offer rates were much lower than in NYC and London, indicating oversupply.
Nevertheless, maybe London offers the "prestige" premium? Though I don't see how HK lacks in that regard either. Best place to bank in Asia.
I have the same question, and cannot possibly understand why... 50k pro rata in London will only allow you to take home approx 3k per month. This is ridiculously low.
I think it is so low because of the exchange rate... 2-3 years ago £50k were $86k.. being the vast majority of the firms American, I think they took the salary in dollars and they converted it in Pounds and Euros, but now pound is weak and they did not adjusted the salary
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