Stifel Canada is not paying a dime in bonuses this year. All “bonuses” will be paid as a forgivable loan, only forgivable if you stay with the firm until December 31, 2023. If you leave before or if they fire you for anything you have to pay back the whole loan with interest. This applies to everyone from An1s to MDs. Moral is insanely low right now. Like this will keep anyone from jumping ship.
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This is insane I’ve never heard of this happening. Especially with loan aspect.
Big L for Stifle
What's the interest rate
0.69% weekly compounding
What's the tax treatment of such actions in USA? Assume your IRS considers it income? Does the clawback aspect change anything?
I believe this is in Canada
Across all groups? Even mining? They got like >$10mm for the AUY/GFI/PAAS/AEM advisory work alone...
I was thinking the same thing, Egizio has been on a tear
This does not seem legal in the US. It's not like it's in your contracts like a signing bonus clawback would be.
Leaving, sure. Firing, no way
EDIT: Just realized this was Canada, not sure if these policies apply to US side. But I really wonder if Canadian laws would allow this clawback if you're terminated, seems far fetched
If it's structured as loan, they can put whatever they want in the repayment terms, including full, accelerated payback with accrued interest for termination of employment for any reason, voluntary or involuntary. This applies to the U.S. too. Can't comment on the tax implications however.
Sorry to hear you guys got shafted. If it is structured as a "forgivable" loan, will you still get taxed the same? Were the figures in line / worth waiting a year for it
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Woah have never heard of anything like this before! Feel sorry for ya man heard the comps in Canada r lower too
What’s the reg industry comps/bonus?
Can someone else verify this? I have a hard time believing it
I can confirm this. See my post below.
You know, it feels like every day I read a new story similar to this - banks creating pay structures at the junior (even Analyst) level which involves some kind of clawback, restricted payment, etc. (including some which have a requirement to pay back a gross amount despite the employee being paid a net amount).
Not a good sign for things to come. Stay strong my monkeys.
Yeah my first bonus has a gross clawback
Quite curious on this, following.
This is a shameful low blow if true. Essentially they pressure you into taking a loan (the obvious why would you not agree if you aren’t planning to leave? ) and from their side they have little to lose.
This being said, I doubt this holds in court. Could easily see them getting fined if sued.
Not sure what to say other than I feel awful for anyone at Stifel CAN right now. To work so hard all year long in anticipation of being rewarded for that hard work is brutal. No one deserves that. It is well known that IBD is only worth the squeeze when you incorporate your bonus into your TC, as otherwise the hourly rate is painfully low. To all the folks who busted their ass all year, Im sorry. Working in banking is terribly taxing. Its not just the hours, the stress, the short deadlines, the inability to exercise due to long hours, the sacrifices you make to cancel on friends and family, but it is all of this combined. That is a lot for anyone, especially folks early in their career to sacrifice. But many do it all in hopes of being in a strong financial position. While this goal is still achievable, a year like this hurts any long-term investing the folks at Stifel were hoping to make. Especially given the notion that many bankers invest the lions share of their bonus with the aim of generating that compound interest that goes such a long way.
I feel the urge to call out the importance of focusing on what you can control when looking at future contracts. The last few years have been a wake up call that bonuses and SBC is not guaranteed (or may be meaningfully lower than expected). I dont say this in a condescending way, I feel that many of us will suffer in some capacity in the years to come.
Well said and I think if you combine it with the fact that we have seen a lot of banks hold off on promotions this year as well, banking at the junior level is just not what it use to be.
If it makes you feel better, that policy is one where Stifel's PCA team in the U.S. has had for years. All "bonuses" are debt instruments that need to be paid back with interest if you leave within a certain time frame. So that's not a one off thing you're encountering - it's happening across the entire business for the long term.
Wow, didn't realize this. What a bunch of scumbags.
How does any talent put up with that? Or are they scraping the bottom of the barrel?
Look at the talent they have there and the level of attrition. It makes sense.
I cannot imagine the morale hit, but more importantly, the discrepancy between U.S. and Canadian counterparts. That's a material difference in comp structure, which is more iimpactful than bonus differential itself.
Sounds like Stifel CAN will never hire another candidate who holds another banking offer again. Hopefully, every single junior will quit so that other banks don't start adopting this. Complete horseshit and the brass who came up w/ & implemented this idea are scumbags.
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Agreed, Stifel basically demoted themselves with this weird structure. Would have been better to give smaller cash bonuses instead of a loan. It’s going to be a little harder to convince people to work hard for the ‘bonus’ in future years.
So what, just stay for a year and collect or make your new firm make you whole if you bounce.
You work for some random bank dude, it’s not always gonna be top of street pay.
JFC. Have some empathy, man.
Were the bonus amounts at least decent?
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