When you're an MD at a BB, how much of your bonus is stock? I tried poking around WSO but didn't find anything. If you've been an MD at DB for example, how much of your "bonus" has been flushed away by their crappy stock over the past 5-10 years?
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Short answer = a lot.
Can't confirm (only an associate) but there was a post a while back explaining that stock comp becomes an ever-increasing portion of your bonus the higher you climb. Given that associate stock comp ranges from 15-25% I can only imagine...
Makes me jealous of those paid in straight cash, can end up making a huge difference.
Doesn't it vest in like 5 years? I can only imagine how annoying it would be to generate a ton of deals and want to leave/retire but be stuck at your bank indefinitely.
That's why they are called golden handcuffs! Few people account for that discount when calculating their pay. You'll always leave a ton on the table.
I am like 90% sure Baird and Blair pay straight cash--maybe Harris Williams?
Believe Baird, Blair and Jefferies pay straight cash bonuses across all levels.
I'm sure it is banker and Company-specific, but I believe one of the ways other banks lure MDs is to pay them for their deferred comp that isn't vested. I know that happens at some of the Tier 1 MMs.
some firms have cash caps (250k-500k), and everything above is stock...so when a hot shot MD gets paid 4.5mm...4mm was in stock that vests 25% a year over 4 years
That fucking sucks
not alwasy...at credit suisse when they had a bad year people got paid mostly in illiquid structured products that clients wants to dump...some of those ended up returning 30-40%
Ha, if only we could all be so unfortunate.
Let me piggyback on this. I'm kind of confused on how stock based comp actually works. Is it that they give you the stock and you have to wait a while to cash it out?
If anyone would be willing to provide an explanation and answer some more questions that will be great.
they promise to give you x number of shares per year...so long as you are still in good standing at the firm...so you can't leave without giving up a portion of your bonus.
When can you cash them out after receiving them? Is it after a while or immediately?
Is it really that bad? Sure the first 1-2 years aren't great since you're basically getting ~60-70% of your expected realised total comp but once you're past year 2 and have a few overlapping tranches of stock vesting every year your realised comp trends back up to like 85-90% of where it should be (still not great because it's not 100%) but not that bad either.
Just means that a large chunk of your realised comp will be in RSUs which you can auto-sell on-vest anyway.
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