Summer Analyst Overtime Pay.
Just received my 2027 summer analyst offer at a MM bank. The offer letter lists the base analyst salary accrued over the summer, but it also states the hourly rate and includes 1.5x overtime pay. I understand interns typically work very long hours, so I’m trying to understand how this actually plays out in practice. If we’re working 70–90 hour weeks, are we actually paid overtime at 1.5x for hours over 40? Or is the “base accrued over the summer” number already assuming a certain number of hours? The base pay alone is already very attractive, so adding 1.5x OT makes it seem almost too good to be true. Would appreciate insight from anyone who has done a MM SA internship recently and can clarify how compensation is structured. Also, is this one of those situations where technically OT exists but asking about it or tracking it too closely is a bad look? I obviously don’t want to signal that I’m focused on hours or pay over performance.
Based on the most helpful WSO content, here's how overtime pay typically works for summer analysts at MM banks:
Overtime Pay Structure: If your offer explicitly states 1.5x overtime pay, it generally means you will be compensated at 1.5 times your hourly rate for hours worked beyond 40 per week. This is in line with labor laws in many locations, such as NYC, where overtime pay is mandated for non-exempt employees.
Base Pay Assumptions: The "base accrued over the summer" is typically calculated by prorating the annual base salary of a first-year analyst. For example, if the base salary is $85,000, it is divided by 52 weeks and then further divided by the expected hours per week to determine your hourly rate. However, this base pay does not usually account for overtime hours, which are calculated separately.
Practical Application: While the offer may include 1.5x overtime pay, the reality can vary by firm. Some banks are diligent about tracking and paying overtime, while others may have a culture where tracking hours too closely is discouraged. It's worth noting that some firms may classify interns as exempt employees, which could mean no overtime pay despite long hours.
Cultural Considerations: At many banks, discussing or focusing too much on overtime pay can be seen as a negative signal. The emphasis is often on performance and team contribution rather than hours worked. That said, if overtime is explicitly part of your offer, you are entitled to it, and it’s reasonable to expect compensation for the hours you put in.
MM Bank Specifics: Middle Market (MM) banks can vary widely in their approach. Some, like BAML, have been noted for offering 1.5x overtime pay, while others may not. It's a good idea to connect with recent interns at your specific bank to get a clearer picture of how overtime is handled in practice.
In summary, if your offer explicitly includes 1.5x overtime pay, you should be compensated for hours worked beyond 40 per week. However, the culture around tracking and discussing overtime can vary, so approach the topic with discretion. If you're unsure, reaching out to HR or recent alumni from your bank can provide additional clarity.
Sources: Investment Banking Summer Analyst Salaries 2017, Which firms have the best/worst compensation for summer analysts?, Summer Analyst Hours at BB/EB
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