Lateral VP Comp Negotiation
Hi all - first year VP here (6mo on the job) and I'm considering a lateral move from an M&A boutique to another, and trying to gather any data points around the art of the possible when it comes to negotiating comp at the new place.
My existing spot has a decent amount of deferred comp in the form of RSUs / stock comp - while the potential new spot comps on an all-cash basis. I've obviously accumulated a decent amount over the years ($100K+) and it's paid on a 3 year schedule. Is it too far of a stretch to propose a cash-out for this from the new place? Most BBs / places that have a deferred plan in place would generally "buyout" the comp and put you on a similar payout schedule, but if the place I'd be going to doesn't even have a deferred structure in place, how would that typically work? Any first-hand examples would be highly appreciated
The other big item would be the guaranteed pay. This has obviously moved quite a bit given the turmoil in the industry, but anyone recently made a similar switch? Not in the high flying markets anymore but should I look to a top-bracket type guarantee, or a minimum $ amount all-in?
Looking for some more recent benchmarks when it comes to VP1 - VP2 type lateral moves (VP3 has diff dynamics given upcoming promotion year).
Thank you all in advance!
Edit: 6mo on the job as a VP (so ~4yrs total incl. Associate)
My exp is they pay out all deferred but don’t offer guarantees in this sort of market. Imo.
Unless otherwise forced, this simply isn't the market to make a lateral transfer (unless the opportunity is fleeting and transformational). But given how comfortable / satisfied I am with my current role, I'd not make any switch for anything less than 25% of my current pay which I assume is already depressed from 2021. If it's a multi-year guarantee, you'd have to assume some kind of scaling at your current job for the locked-in number at your new role to make sense.
Thanks, and agree - wasn't looking and this is something that seemingly came up out of nowhere. The opportunity seems interesting to follow someone who is very seasoned in a growing team / new vertical. The platform is very established and seems to be doing quite well.
Agree that this market will be tough on guarantees so perhaps a bracket-level guarantee / hand-shake is best possible scenario.
Interesting about all-cash boutiques paying out all deferred in cash - is this something typically done at the time of joining? Or is it something staged / staggered over several months / year(s)?
I moved as an Associate from a BB with deferred stock to a cash boutique. They are paying out my deferred stock in cash (with value locked in from start date) but on the same deferral schedule as I had - just adjusted to the new firm's bonus month.
I’ve done a similar move as a VP, OP. Anything is “possible”, especially at boutiques. You should generally expect that the new firm will pay out your deferred per the existing vesting schedule (as cash if there is no SBC) and that written guarantees are highly unlikely in this environment, but wouldn’t be unreasonable to have a “verbal handshake.”
Asking for a minimum and getting that in writing can be a double-edged sword - because that is the amount you may well get at year-end, even if you make a very positive impression your first few months.
Good luck!
What is TC for normal VP 1-3 years ignoring the ‘21 blip for BB nowadays?
The market is rebounding and we're back in BULL market territory. What recession?
My two cents (although I'll note that my only other post of here has been 'debunked' as fraudulent for what it's worth..):
I switched banks in 2020 in a pretty crappy market and was basically advised to just throw out a number $50K+ more than you expect to get where you are. Thinking back, I probably should've pushed for more but at the time wasn't feeling great about the job market and figured that I'd take what I could get. My experience was that, once they decide they want to (i.e. you've been offered the job), it's pretty rare that they change their mind over comp. For laterals it's not really a zero-sum game vs. other VPs in the team, and for me the battle was more with HR than with my group - the MD responsible for hiring VPs essentially told me to hold my ground and they'd work it out.
My best advice would be to pick an aspirational number and just grind them down - by the time you actually join it's all forgotten and it's better to come from a position of strength rather than feel like they owe you something.
Moved as vp2 and 3.
1st move was in a hot market from regional to BB. I got promised top bucket in the BB... I couldn't force them into putting it in writing.
Then moved from vp2 to vp3 from BB to eb. I asked for 50k tc above market. I had about 80k of deferred... They gave me top of the market and paid my deferred in cash. After I resigned, the BB gave me some guarantees to keep me... Which I leveraged to get similar guarantees at the eb... I am quite happy of my negotiation...
Asking for the deferred in cash was easy to get through but making them move on the TC was impossible... You can also try to add other things to the negotiation e.g coaching, later start, etc.
Mentioned above:
The only guaranteed bonus I’ve had was not on moving, but actually staying - team was melting with head leaving with an ED, and bank offered me a guaranteed package to stay (which I was planning to anyway). It’s harder at that level for joining - you’re just not precious enough
What bank pays 100% comp in cash to VP?
Centerview? Not sure of anyone else
How did this turn out? I just finished VP1 year at an EB and bonuses were insulting. 600k TC off 300k base for middle bucket
What were you expecting?
That’s not that bad imo - it’s not a great year
Lol, the entitlement here is outstanding. they should just get rid of you
Since when does finance have rsus
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