Hey guys, I don't spend much time here these days but I do have a question for "the market" of junior bankers. 2020 was a wonderful year for me as I directly sourced a sell-side that closed on 12/30 and generated a multi-million $ fee for my firm. It is quite unique to do this as an associate, and we therefore don't have a formal payout structure/program for junior bankers if they source transactions.
Has anyone been in this situation? What should I expect? I think I deserve a healthy %, but would like to be armed with some "market" data (as much as random WSO responses can be counted/trusted...)
Thanks in advance for any guidance!
I think you should expect nothing. Now, that doesn't mean that's fair, or that you'll actually get nothing. But like you said, there's not a formal payout structure for this type of situation, so it rests on the discretion of your partners and what they believe is "fair."
Depending on the size of the deal, if you didn't work at the firm and threw a deal their way, they might have a referral fee program that pays out a few hundred basis points on the transaction size. So something on the order of that might be arguable.
If they believe you have the ability for this to be a regular thing, then they'll probably be more inclined to keep you happy. If they think you just struck gold and it'll never happen again, then ... it depends how generous they feel.
Don't get me wrong, I think it's great you sourced a deal as an associate and that kind of initiative deserves a payout. All I'm saying is that it depends entirely on the culture of the firm and the personalities of those making the decision - there isn't an industry norm here.
Thanks for the thoughtful response. First, I’m not in Seattle anymore, I’m in LA. Second, I didn’t strike gold... this is the first of many! Lol. I think they know that and will “keep me happy” but who knows. You’d think they’d want to incentivize me to do it over and over again.
You have a lot of leverage to ask for a promotion IMO. I would just say you want me to keep doing this, here is what needs to happen to get it done and lead with a promotion.
Your best bet for maximizing your chances of success is to play Alice in Chains albums at top volume in the office. Everyone in Seattle loves Alice in Chains, it's a law. Start with "Sap."
Definitely not, you just...did your job.
It's good leverage for a pay bump/promotion though.
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