Anyone care to explain how the timing works with analyst bonuses at Goldman Sachs and Morgan Stanley? I hear that they're paid out in December pro-rated, but what about the year that you leave, ie: in the summer for a PE job? Do they give you a pro-rated bonus in December later that year?
I wasn't a summer intern at either so I'm not sure.
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yes
So bonus will come while you are working at another firm?
No, absolutely not. That's why so many people move jobs right after bonus season in finance. Some places will "buy out" your accrued bonus but that's up to negotiation.
I have been at Goldman for over 4 years. Answer is no. I confirm what Kenny_Powers_CFA posted.
for IBD, they definitely pay you a stub (at least at MS)
Two different things. 1=start in June, get a stub after 6 months 2=leave in June for another company, get nothing for the 6 months you've worked.
Nope, not different at all.
1 = start in June, get a stub after 6 months. 2 = leave in June for another company, get a stub for the 6 months you've worked.
that's the way it works in banking for analysts, where 2 years and out is for most people the norm. unsurprisingly, GS / MS cannot (and did not) just unilaterally decide to pay 25% less than the rest of the street and hope to get the same talent. their brands may be strong, but they're not that strong...
GS:
Bonuses communicated in December, paid out late January / February.
1st six months you'll receive a prorated stub (e.g. ~$35k of $70k or roughly half of what an equivalent 1st year bonus would be)
1st full year (months 7-18) you'll recieve a full year bonus ($70k)
Last six months you receive another prorated stub, communicated in July and paid out end of August.
Hope that helps
That's all well and good but it's not really what the original question was. If you leave before bonuses are paid for whatever period, you won't get a dime.
Exactly what I was wondering. +1
For GS, if you leave in July to go to a buyside firm after 2 years, you will still get the six month prorated bonus on the back end. That's what he asked, and that's the answer
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