Lateralling as a 3rd Year Analyst Shortly Before Associate Promotion
Currently a 3rd year analyst and set to lateral to a BB in mid Q1. By timing, I will be joining only a few months ahead of A2A promotion
Wanted to sanity check a few things with people who have been through something similar:
- Has anyone lateralled as a 3rd year analyst shortly before associate promotion?
- Did it have any impact on promotion timing, expectations, or how you were viewed by the group?
- Anything specific to be mindful of in the first few months given the proximity to promotion?
Unless you think you won't get the A2A at your current bank or you're going to a much better bank, the move does not make a lot of sense.
I would wait a few months, get promoted internally, get your annual and promotion bonus, and then lateral.
People who get the promotion through a lateral movement are often perceived as someone who did not deserve it.
Thanks both, much appreciated. Yes, I’m moving to a significantly stronger platform and leaving a struggling team, so it is a clear step up. In interviews, the team indicated I would be eligible for promotion this coming summer, but given the short time frame I wanted to get a sense of what to be mindful of going in. Either way, appreciate both perspectives.
“Being elegible” does not necessarily mean that they will promote you. In my view, getting promoted internally and then lateraling as a fresh ASO is a much cleaner exit.
Having said that, if you have the chance now to go somewhere very very top (e.g. Goldman TMT/FIG, MS M&A, or CVP HC) maybe it is worth taking the risk.
Agree with the above commentor, why would you not just wait to get promoted then lateral as a new / fresh associate? Worst case scenario, it takes you longer than expected to land a new role but you're sitting on a full bonus and much larger base salary.
To answer #2 from above - typically lateral "senior analysts" or whatever have to "prove" themselves for the associate promotion over at least 6-12 month (ultimately setting you back 1/2 - 1 full year vs if u stayed / lateraled as an associate).
I recently interviewed with a top EB for a lateral analyst spot and they told me they don't promote laterals until 12-15 months after joining. I respectfully told them they're smoking d*ck and removed myself from the process.
Best of luck.
cuz ec is toxic af. But who am I to say!
What about the other way round? Starting at a top bank (top BB / EB) and lateraling to a weaker bank (BB / MM) to secure that promo.
Like others have said - odds are you probably won't get promoted until you've done >1 year with your new bank. The hiring market isn't like 2021 and banks really have a lot of leverage for the few lateral positions that are available. Hopefully the below questions can guide your judgement:
1.) Are you changing coverage groups? If so, it does get a bit more difficult if you stay until ASO in your current group and the hiring market continues to deteriorate. I.e. It would be more difficult for a lateral going from Infra coverage to Tech when the bank when you can hire a senior analyst from a Tech coverage group who knows the industry. However, if you are doing the same coverage and moving to a BB just stay until ASO promo and look for ASO roles.
2.) Where are you lateralling from? If its a T2 city to a T1 city, and MM to BB, then I think its a no brainer to take the offer you have. But, if its BB to BB in NYC, maybe not.
3.) Might get MS for this, but if you are a woman / minority it is more likely your team will promote you in July - not starting an argument on DEI but I've seen this happen multiple times where qualified male laterals will do an extra year over a woman who will be promoted on schedule
Thanks, I appreciate it. Not changing coverage groups and I'm already in NYC, but it's a move from a LMM to a top BB. Not a woman / minority, but that makes sense.
Interesting to see what happens with the >1 year with the new bank, as I've never heard of a 4th year analyst at the bank, but time will tell.
If it is a BB / EB bank, your on-cycle promotion will depend on deal activity and internal competition assuming you are not switching coverage.
However, if you are a woman and/or black / Hispanic male or LGBTQ, your promotion will be ASAP regardless of business activity as it improves DEI metrics of MD and they get comped better.
I speak from experience, but would also advise you to wait until you get promoted internally to associate at your current LMM shop before lateraling. That way, you can secure associate offers at BB vs taking a huge gamble on whether you will get the A2A offer at the BB (do remember that the “homegrown” analysts at that BB will almost always be prioritized for A2A over a new lateral they’ve barely worked with much).
Agree with others to wait until you get promoted or negotiate a little harder to get something guaranteed.
If they like you now, and market continues to pick-up as many expect it to there will still be bids out there for you and this shop has company in being a top platform.
Don’t sell yourself short and good luck. High class problem.
If you want to do the job long term, who cares? 1-year longer trajectory to promition is nothing relative to a significantly better path from a better platform.
Not as safe as it used to be. If the new team has a bad year, and MD needs to cut juniors he will be on the chopping block. MDs are cowards and they won’t cut DEI Beckies and he won’t be able to outshine / build relationships to be rated higher than existing top juniors within a year. Chances are low this will materialize but juniors are fair game in layoffs these days.
While I generally disagree with tone and elements of this take I do agree with higher risk (will get to that in a bit). Some of the comments here highlight a severe misunderstanding of how the industry or any large shop works (evident in some of the phrasing) and seems to be coming from a place of anger / discontent and again just not how this industry works ie “not as safe as it used to be” shows zero perspective of how this industry has evolved in last 20 years starting with GFC and MS/GS needed to cut deals to stay afloat and also pushed hard for govt intervention post a lot of shops (ML, LEH, BSC, WACH) going down, MDs at any mid to large shop do not have unilateral firing authority, this does not reflect what HR inputs there are or guides from top of the house around redundancy / forced rankings and fact juniors, and most in banking are always “fair game” and basic research over the last 30 years of the industry would highlight it is higher risk.
With that said I do agree with the point that generally someone new is at a higher risk of not getting a promo, and if things go south (saw this in GFC) will have less advocates at the table / experience for a forced ranking that may help decide cuts or more likely bonus - hence my point in negotiating. I also think that in some unlikely scenario where they did get let go there would be questions as why that person didn’t get promoted and spent X years as an analyst OVERALL etc. and why a bad deal was cut on a move (did they have no leverage?) - I have also seen this and inferences around it. At the end of the day the point around taking a longer-term view very valid but this is a high risk industry and decisions should be made in lights of puts and takes and there should not be a fear to negotiate if not title; then other other elements.
Just make sure to tip your MD and take your staffer out to dinner before you leave
I've seen guys do it when going from T2/3 BB to EVR/MOE/PJT
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