Questions about Analyst to Associate promotions
Hey everyone, I will be joining a "low-tier BB" (WF/DB/RBC/UBS) in NYC as a first year investment banking analyst in the M&A group this summer. So I'm from a non-target (top 20 US News liberal arts) school and I can count the number of alumni in PE on one hand. Our alumni who work in PE are all at lower MM funds (300-500MM funds) even though they did their analyst years at a top tier BB or EB. Rest of my alumni network in finance are career bankers. That being said, I know my chances of exiting into PE are slim to none and I will most likely have to choose the career banker route or exit into corporate after 5-7 years on banking.
My bank has a 2.5/3 year analyst program, and I had a bunch of questions about AtoA promotions that I'm hoping some of you guys may be able to answer. Thanks!
1) What is the base pay for 1st year associates? I've heard both 125k and 150k, but any predictions on what it'll be in 2021? What about 2nd and 3rd+ year associates?
2) I know MBA -> 1st year associates get a huge signing bonus. Does that also apply to Analyst to Associate promotes? If so, how much?
3) I've heard that you get like a 2-3 week "sabattical"/PTO if you are an A to A promotion... is this true?
4) 3rd year analysts at my bank told me their hours are significantly better as 3rd years than 1st years (65ish hours on average 3rd yr vs 80-90 1st yr). How are the hours for 1st year Associates who are A to A promotes that already know how banking works?
5) What do bonuses look like for A to A promotes? Is it higher than MBA counterparts since you've been doing this for 3 years now?
6) More specific/personal info on associate comp (base + bonus) in the M&A specific groups for Top Bucket would be super helpful. Thanks!
I'll take my best shot at answering these. For reference, these are in reference to a firm like Evercore/Lazard/Moelis/Perella.
1) Base pay at my firm is around $125k your first year, and then 100-110% bonus, so all-in is $250-260k. Absolutely no idea what it will be in 2021, and I'm not sure many other people know either. 2nd and 3rd+ year associates get paid (ballparking this from conversations with my VPs) $275 and $300, respectively. Maybe a little more, I am definitely being conservative here.
2) A2A promotes at my firm get $60k, gross, I believe. This is on top of their 2nd or 3rd year analyst bonus. So yea, it's a lot of money all at once....
3) One of my buddies who went A2A last year did get an extra 2 weeks off, and he used those 2 weeks to get married. I bet this varies firm to firm.
4) This is a really key realization that is discussed, but doesn't really hit you until you experience it. Hours don't actually get "better," per se, as you get more senior. Your efficiency just improves immensely, and your time management (and managing up) skills catalyze this. However, if you are at a sweatshop, then no matter how efficient you are, you will always have more work to do. https://www.wallstreetoasis.com/forums/depressing-moelis-co-staffer-ema…</a">See here, lol. Tl;dr it varies, but yes, your average A2A is incredibly efficient and good at their job, and will be working fewer hours than the first year analyst who just hit the desk.
5) See #1. From what I've seen, it's the same as their MBA counterparts (at comparable skill levels, of course).
6) Hm. I'm not going to give this, mainly because I don't know for sure, and speculating doesn't really help. I'll just say that it is a lot. I'll put it this way - VPs regularly get paid $400k when they start out, and often more. I'll leave it to others to fill in the gap.