So I'm a first-year VP in Equity Research at a BB who's been offered an I-Banking Associate role (coverage) at another BB. I'd be coming in as a first-year Associate, which seems like a bigger step back than I was anticipating (the discussions in interviews revolved around me potentially coming in as a second year).
Granted, I don't have the banking experience that second years have, but the work I've done to date on the research side and my education (CFA charterholder) leads me to think an A2 slot is reasonable. Am I crazy, or am I just being low-balled?
Hi ExpectAscension. Out of curiosity, why would you want to move to IB as an Associate (1st or 2nd year) when you're already a VP in ER at a BB with a CFA, instead of becoming an Analyst or move to the buy side?
Short answer is I'm getting bored covering one industry (so don't want to be a senior sell side analyst), and banking would give broader TMT exposure so that I'm not pigeonholed this early in my career (I'm still relatively young). Buy side doesn't really appeal to me given the risk-reward asymmetry (small chance of big upside, but a big immediate pay cut's more likely).
When you were interviewing, did this conversation ever come up (whether you would come in as an A1 or A2)? Or did you avoid it on purpose to get the offer on hand first?
If I were you I would have expected A2 as well.
Nope--the interviews revolved around me potentially coming in as an A2 from the start. A1 came up only after final round.
That seems to be in poor form, if the original discussion centered on A2. Feels like a bit of a bait and switch. Typically, firms are pretty clear on the position level, because they want to make sure the candidate is on the same page.
Probably worth asking them why A1 was ultimately decided, and negotiate/make a case for A2.
Makes sense. I was thinking that same thing. Thanks, guys.
A1 seems like an overly large step back. If you're bored of covering one industry, have you considered switching coverage? Also on the buyside, moving to a long-only would be a less extreme shift in terms of risk-reward, plus you could look for a broader role in terms of sector coverage.
Thought about that, but switching coverage isn't a viable option politically, and the long-only options where I'm located aren't great. Banking seemed like the option most in alignment with short- and long-term goals. Appreciate the counsel though.
Would the likely comp decrease be a major setback in your life? VP in ER should be 300-400 while A1 in IBD should be 200-300
Did they say you will be fast track to VP? Or just a regular A1, meaning at least 3-4 years to VP?
Haven't talked through the fast track yet, but the comp would be down enough to cause me to rethink the whole thing (I'm a VP1).
Best to just get on the path to what you want and do a great job. Unless you get something in writing than it's all just feel good stuff and no one is going to give you anything in writing.
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