Jefferies bonuses
Heard numbers start coming out today and not good. Anyone have any details?
Trending Content - Investment Banking Forum
| +355 | Evercore Intern Seizure | 54 | 7h |
| +67 | JPM M&A is Gone??? Purely Coverage Banking??? | 31 | 6h |
| +58 | Is DCM actually underrated ? | 24 | 17h |
| +50 | How do I understand vs. just memorizing? | 5 | 16h |
| +48 | Losing my personality in Banking | 9 | 17h |
| +47 | Are all Tech / TMT groups sweaty? | 38 | 13h |
| +42 | Associate & Above IB exits | 16 | 3d |
| +32 | Incoming IB Analyst: Best Ways to Prepare? | 10 | 9h |
| +27 | Which groups are ideal for laterals? | 12 | 11h |
| +24 | The good and bad with Wells Fargo | 1 | 17h |
Career Resources
Heard 40-60 for AN1 and 50-80 for AN2
Oh goodness
Group?
Industrials
Would be pathetic
What about at top groups such as Healthcare/Energy/LevFin?
They haven’t communicated yet
Energy group got numbers today as well
Crazy low
Yup. The January class all got $23,546 which annualized is a 45.7% bonus. Complete shit.
For all his virtue signaling, Handler is all talk if these numbers are true
It’s pathetic, not to mention multiple analyst 1s were recently fired / laid off in a few groups.
Which groups?
Is this real?
This is a bloodbath if true. Probably way over-staffed now and this should cause headcount to self-select out
Confirmed on range. I expect there to be turnovers across the board
Can confirm 40
Prayers to my brothers out there pulling 100 hour weeks on useless pitches and relationship management BS just to get 40k bonuses. Might as well be at a BB and get the brand cachet on your resume lol
Jefferies finna be begging laterals from Truist to join pretty soon
truist paid analysts 2x higher on the bonus - hope this becomes a meme thrown at IG bro Handler
Idk bro the only people begging me to lateral are 3-man PE shops in Idaho and the corp finance division at Home Depot
RIP Jefferies…can’t see them attracting any sort of talent with a data point like this
Yeah but their CEO is like, super hip on insta so that's cool (heavy sarcasm)
lol litquidity already shilling for his buddy Rich Handler on IG saying these #'s aren't that bad...
saw that too lol - I was waiting to see what he would post on his story but this is basically what I expected. It sucks for the folks that worked so hard, especially those working on M&A deals primarily (so not the ECM/SPAC/LevFin folks where deal flow tanked in the last 6 months or so) because the M&A deal flow internally is still pretty robust.
i get that an instagram content guy is going to shill for whomever gets them the most eyeballs so that's expected. What I don't get is how the Jefferies board is okay with their CEO, who is paid millions, using his work time by going on instagram and commenting.
Any other data points?
You analysts have such outsized expectations based on 2021. A $50k bonus for an A1 is not bad lol, you’re a literally comparing against one of the best years. Back when I was an analyst that was the range at almost every bank.....
When you were analyst you didn’t have +50% rent and 9% inflation give me a break
Thanks boomer
lol you guys can MS me all you want and say whatever, your class still had way crazy expectations for bonuses in a very unpredictable environment. Welcome to the industry
Back when you were an analyst, there wasn't 10% inflation. And A1s should have the record activity from August - February count for bonuses, such as it was allocated to associates and above in this past winter's bonus cycle.
Life’s not fair, the fact is banks are not going to give out insane bonuses in current unpredictability. Doesn’t matter what you think period of time you are technically owed for, just not how it works. I really wish you guys did get better numbers, but it’s just not the way it works
Base was also 75k..
stfu dick handler we know it's you
Another point not even being factored here
Because comparing what an analyst makes today vs whatever you made in the 2000/2010's is a pointless exercise lol. You sound like a bitter old man. These analysts were consistently putting in 80-100 hour weeks during a record year for the bank (IB rev up 84% YoY in 2021). If JEF didn't compensate them for the Aug - Feb months that's their fault. Not sure why you're standing up for a large corporation that clearly just shafted their junior talent.
You’re right, this guy is definitely an old boomer fuck that's fallen victim to the corporate lifestyle and seems annoyed that we don't want to support companies that don't give af about us. "Nooo bonuses were reasonable, you guys have high expectations. Now apologies, I need to finish my break and resume having Handler's and other corporate CEO's dicks in my mouth"
Ex-Jef guy here so take it easy on the MS. Couple responses and data points. 1) this bonus range is the same range they paid out in 2017 and a little worse than 2018. 2) know last year was crazy but 2016/2017 was crazy too w/ late stages of long bull run, people were pulling 80-100hr weeks consistently then too; it was a total sweatshop (still is). 3) they paid all of M&A an1 $40-$45k and one guy straight up walked away a few weeks later. Many in my group left before 2 years because hours/culture weren’t worth the comp. 4) genuinely feel your pain (been there), I’ve now been in PE for ~5 years and really enjoying it. Try to remember you aren’t doing IB for short term earnings. It’s a long game and takes awhile to start really cashing in on the 2 years of $h!t you ate. Lateral or do whatever you do but JEF is a good name on your resume and you’ll get good exit opts so my 2c are wouldn’t jump to “lower” shop and would just coast and recruit in Y2, they will pay you like trash on your exit year bonus any way (been there). Stay strong tribe.
You conveniently forgot about the higher bases. Everyone is way too emotional on this thread and somehow got the believe A1’s are entitled to $70k first year bonuses. That wasn’t the norm anywhere in 16, 17, 18, 19 or 20. You’re literally comparing just to 2020. Being on the ms tho cuz know you don’t wanna hear it
If I were a client, I would doubt Jefferies as a trusted partner due to Handler's addictive and unnecessary social media behavior. I think he lacks focus and should retire.
Thanks prospect
*certified prospect
JEF AN1 here - my number was slightly lower than the 40 - 60k range quoted (and I'm in one of the top groups too). Can also confirm a couple junior folks (lowest performers in my group) were fired a few months back.
What group?
Anonymous account is anonymous . . . don't want to share any more detail.
Anything on Associate 0 numbers?
Jeff pays associates in the summer?
Associate 0 is analyst 3. Same shit and same pay cycle
Depressing
This doesn't make sense, as part of Jefferies main draw for talent is that they pay people, or at least above BB's which their MM competitors like HW and WB do. This 100% makes sense for ECM bankers where deal fees are down astronomically YoY, but for some groups there I know for a fact deal fees are basically flat from 2021, so this is going to absolutely kill morale. ECM guy working 60% of the hours Tech, M&A, and Healthcare are, but getting comped the same? Fuck that... will be intrigued to see if this holds across groups as some haven't been given numbers yet, but this will surely impact their talent pipeline.
Everyone about to start looking elsewhere lol
Aren't we all always looking for lateral or exit opps?
Yes, but even more so right now.
Handler putting on an absolute clinic in how to lose all your junior talent 101
Where do you think analysts will look to lateral to? Genuine question, not at Jeff myself
I will lateral to bed bath n beyond
Powerpoint logo shufflers ...
"talent"
Funny how it's this type of guy who will then complain about how bad his analysts / associates are. IB is all about human capital, so yes "talent" matters. If JEF hires well, doesn't pay like shit, and trains these analysts they can go on to become great associates, VPs, etc.
Love how VPs (or other mid-level employees) are telling analysts to suck it up as if they themselves aren't just a cog in the eyes of these large corporations/banks.
The money that Jefferies saved by being cheap on bonus is just going back to the already extremely wealthy individuals, I'd rather have recent grads get the money instead. Also, if analysts get paid that should generally create a salary floor for associates and then that effect trickles upward. Its literally in your best interest as well
Nah, it's in their best interest to look out for #1 (Senior MDs (read: productive MDs), Partners, Equity Stakeholders).
Anyone below those levels is, was, and always will be expendable and easily replaceable. Welcome to finance.
In 2020 JEF paid low bonuses despite it being a record year. After people started leaving they paid an additional amount but made people sign additional clawbacks. Talking about London here. Something like this could happen this year, however, chances of it are slightly lower due to the macro backdrop.
Key question is, which places have paid better?
Also, for all the people saying the bonus range in 16/17/18 was comparable, I think the indexing is normally linked to % of base (not absolute figures) which is why a lot of people here are cynical.
Let’s see what happens.
Someone commented there have been cuts at Analyst level in US. Which teams? Were they to do with performance or just cost-cutting?
JEF is in a real bind here.
Their comp ratio is constrained by their bond covenants, and they have less flexibility than less levered firms and larger firms
If they are screwing their analysts over (which make no mistake about it they are), it’s a pretty good sign that senior people are going to get screwed given their bloated cost structure. And clawbacks notwithstanding they are going to struggle to retain their best senior talent.
it was different when they had Lorello to mind the ship - he could control the inmates. Now, with Rich spending all his time on social media, there’s no one there to manage through a very rough path.
Can you expand further on this?
Wrote that quickly, meant credit rating. Read the rating agency reports. Jefferies is constrained by their credit ratings in terms of the comp ratios they can pay, so they have had to juggle growth, the rating and comp. It works when the business is over performing but it gets very hard there in a downturn. I can see some of their top guys being vulnerable.
Can confirm ADG a1 @ 45k, they're all pissed
as a VP, I'm always very curious where my analysts are in terms of comp - yes, I know pay has risen significantly from just a few years ago but it's hard for me to tell juniors to enjoy the moral victory when perceptions of wealth have and always will be measured by your echo chamber. That's why even senior bankers don't think of themselves as 'rich' because despite being multi-millionaires, that's just average in terms of their 'peer group'. So if analysts at my bank feel underpaid compared to peers, they'll leave to peers and make my life more difficult. I'd happily take a 10k hit off my personal bonus so that I'm not hit with a bunch of turnover and start having to align logos myself.
I wipe my a** with a 22k bonus after tax
AN1, Coverage, 50K
Some in my group got above 60K as top bucket, some received 40K.
A few more groups reported today. Seems like plurality of folks across groups got 45k.
What abt A2 or As0?
A2 50-80, A0 80-100
ASO 0, 70k + 40k stub (stub has claw back)
You got 70k as your AS0 year? 40k is just the A2A bonus?
Correct. I guess bottom/mid bucket but haven't heard enough #s to really know. Is what it is. Base going to 175k
So first years are making 160 all in in a challenging year, down from 170 or so in the prior record year, and there is all out revolt?
Exactly lol this class of analysts is so delusional. They ignore the significant base raises and are now mad at $160k all in comp while we are arguably in a recession. Somehow they felt entitled to a $70-$90k first year bonus and now the universe has personally betrayed them. Idk where they get these ideas
I think what are forgetting to consider is the fact that base salaries and the normalised overall comp for the job has not moved in over 10 years, and over that period we are looking at almost 20% inflation, even ignoring the current year.
In that context, the so called base comp increases are just an example meaningless virtue signalling by banks, assuming the overall comp stays the same.
Arguably, this is even worse than not rasing the base at all, since a reallocation of the total comp towards the base increases the likelihood of people leaving within the cycle rather than sticking it out until the end of the year (same logic applies to vesting for more senior positions).
Overall people just feel outraged that in real terms bankers were paid considerably better about 10 years ago and astronomically better pre-2008, yet the messaging coming from the senior bankers is that somehow those juniors are "entitled". Not even mentioning the increased competition for the job.
A2
Product group
45k…
Exited to buyside
Hope to never work with them again… m&a fees were flat / up for the period we worked based on public filings
Which product group if you don’t mind me asking? Was it debt related?
Fugit rerum unde vitae quis omnis et velit. Ab asperiores laborum officiis. Est ab perspiciatis praesentium et quae eos.
Nobis nisi nam ut consectetur qui. Rerum magni aut provident quaerat voluptas. Explicabo qui quis et laborum omnis quis eos. Repellat fugit ut eum unde nemo eos maiores est.
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...
Alias itaque id est eum facere nam. Quia deserunt sapiente molestiae officiis porro sint voluptate.
Deleniti voluptatem dignissimos beatae odit facere in. Rerum omnis dolorum enim voluptate et. Quasi expedita eius quasi modi adipisci distinctio. Maxime similique sit itaque quod iste repellat aut. Impedit culpa ut veritatis odit.
Repellat assumenda dolor unde laborum totam illum possimus. Nihil dicta quo quibusdam numquam aut voluptas. Dolorum et quo est aut magnam quis. Reiciendis praesentium alias qui adipisci eveniet molestiae.
Qui voluptatem quas in consequatur. Voluptatum nisi nisi mollitia ab sint dicta. In autem voluptate fugit et cum ex.
Explicabo hic aperiam id exercitationem officia. Voluptatem exercitationem veritatis nesciunt nobis dicta aliquid quia. Neque explicabo rerum similique quo.
Facere ea quisquam fugiat dolor eos repellat nesciunt nihil. Porro molestias maxime quia repudiandae ut quas sed. Cum est architecto aliquid in. Voluptas accusamus sint nobis quas doloremque quis asperiores.
Itaque magni necessitatibus odit voluptas reiciendis aspernatur. Possimus doloribus quibusdam eligendi deserunt maxime fugiat. Autem quibusdam est aut sunt itaque. Dolores autem magnam est earum et.
Voluptatem nostrum nobis culpa. Rem voluptatem placeat repellat ex rerum et sed.
Voluptatum ut optio suscipit. Excepturi qui et velit possimus quas. Omnis molestiae optio animi enim vel consequuntur vel. Provident et exercitationem cupiditate sed dolor impedit. Voluptatum molestiae placeat consequatur distinctio aspernatur ea. Est magni qui et aut ea.
Expedita earum officia quia eos nostrum ea. Minima error aut voluptatibus non. Fugiat corporis recusandae quia adipisci deleniti ea vero. Eos possimus unde autem est harum.
Ipsam impedit voluptatem et. Enim fugiat neque enim exercitationem incidunt temporibus iure. Ut ad sunt est voluptas.