LONDON - Switching banks to make more money?

Based on previous WSO threads, switching banks can indeed lead to higher compensation, but the specifics can vary. Here are some insights:

1. Negotiating Higher Base Salary:

   • It's possible to negotiate a higher base salary when lateraling, but it often depends on your experience and the demand for your skills. For example, one user mentioned being able to push for a direct lateral move without losing a year of work experience, which helped in negotiating a slightly higher sign-on bonus due to a unique situation involving a clawback.

2. Sign-On Bonus:

   • Sign-on bonuses can be a significant part of the compensation package when switching banks. For instance, in one case, a user reported a $20K sign-on bonus when moving to a new role. Another user mentioned a $50K sign-on bonus along with a $25K vesting retirement program.

3. Overall Compensation:

   • The overall compensation, including bonuses and retirement programs, can be higher when switching banks. For example, one user highlighted an annual bonus ranging from 25-50% of the salary, which can substantially increase total earnings.

4. Unique Situations:

   • Some users have unique situations that allow for better negotiation. For instance, having a clawback from a previous employer can sometimes be leveraged to negotiate a higher sign-on bonus to cover the shortfall.

5. Considerations:

   • It's important to weigh the potential increase in compensation against other factors such as job satisfaction, work-life balance, and career growth opportunities. One user emphasized not settling for a place that might fix the bonus compensation issue but could negatively impact your ability to gain good experience.

In summary, switching banks can lead to higher compensation, but the success of negotiations for a higher base salary or sign-on bonus can depend on individual circumstances and market demand.

Sources: A Guide for Switching From Commercial Banking to Investment Banking, 2017 ER Bonuses, No bonus/payrise despite good year, A Guide for Switching From Commercial Banking to Investment Banking, 2017 Commercial/Corporate Banking Bonuses