Summer Salary for IB Interns
I heard Bank of America is now paying overtime pay of 1.5x to summer interns. Do other banks do this?
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Merril too.
i know merrill did not do that for either banking or s&t for ever before, if they are, its a new thing this year..
BofA is not doing that in London, so maybe it's a US thing if it's true.
I've yet to hear about either BofA or Merrill doing this, and I have SA friends at both banks. I do know though that CS is doing 0.5x overtime up to a certain number of hours (like 60 to 80)--it might not sound like much, but at 28/hour and 20 extra hours a week thats like an extra 500 bucks every paycheck.
I get overtime at a MM iBank as a summer analyst.
It really depends on the place. I think you've got a better chance in places other than NYC.
My friend is an SA in IBD at BOA in NY. He said the 1.5x is true.
wachovia also pays 1.5x for overtime
all i know is that these taxes are eating up the paycheck either way
ubs, cs, db- .5x bofa- 1.5x citi, ms, gs, lb - nada
Worse banks tend to use this to attract candidates that may have gone elsewhere.
That makes sense as far as attracting candidates.
CS pays 1.5X for OT, so based on that BofA pays 2.5X? lol sorry if I misunderstood.
bofa is paying 1.5 for sure.
I turned down BofA but still received an offer letter. I'm 99% sure there was no mention of overtime, though there was a 2k housing stipend.
This means one of three things: 1. I somehow just missed the mention of this in the offer. 2. People are wrong about the 1.5x for OT OR 3. BofA HR is so stupid, that they only told people who accepted the offer about the OT, which means it was not an incentive but rather just the bank throwing money away on interns who never expected the money in the first place.
Anyone know for sure which of these it is?
For a fact, friend at bofa said the 1.5x was a new thing announced last week and would not have been in the offer letter
what does 1.5x mean? for every hour over 40, you get what??? As an analyst last year I got a pro-rated 60K for 10 weeks. this makes no sense to me. my bad i guess.
For every hour over 40, you get 1.5x your hourly wage. So if your base hourly wage is $20, you'd get $30 for every hour worked over 40 hours. This obviously applies only to people being paid on an hourly basis.
Pro-rated = no overtime. Your weekly wage will be flat, at 60000/52 = $1150. You'll get $11,500 for your 10 week internship, not including housing allowance if your bank provides you with one.
my brother has an opp to move from debt capital side at BOA to M&A IBD BOA in NYC. ..just married recently so doesntknow how it would impact his family life..
What kind of hours does he work now?
A friend of mine is a Summer Associate at BofA. He is getting 1.5x pay for overtime. I found it weird because when I did my summer last year only Summer Analysts (at some banks) were offered overtime? Is overtime for Summer Analysts and Associates universal across banks this year?
I have several friends that made over 30 grand pretax working for some of the banks that offer 1.5x overtime. In fact, a buddy of mine that did a summer with UBS about 6 or 7 years ago said he made more money in his summer than his first year (not including end of year bonus).
Fortunately, i was at one of those banks that don't offer overtime pay.
shd go up to about 90 at M&A (he is a full timer)..but of course M&A is more glamorous
Wow, can't believe all these kids who don't even know how overtime works... 40 hours (often 35) is considered a normal work week, overtime applies to any amount of time worked over that. -.-x means you make -.- times your base wage; in the normal sliding scale, it's time and a half (1.5x base hourly wage). Say you make 10/hr. Thus for the first 40 hours you make your 10/hr, and for any time over that you make 15/hr.
And yeah, seems silly that BofA would announce that post-offer; I suppose it's a recruiting tool to get better yields from their offers (as in, treat them better as summers and they're more likely to come back) but full time is NEVER paid overtime, and for some reason summer Associates don't get overtime either. The bonus is what the full-times get.
Also, I don't believe CS's is capped at 80 hours. And I love some of the snots up top talking about weak banks offering it - it's all about the groups, people.
Oh, and word on the street is GS pays SAs the least.
At GS, it's not about the money. It's about the experience and prestige. That's how they get away with paying a less than most at the entry level.
I get a feeling legal told there firms they have to do it. Otherwise there is no reason they would do it retroactively.
The 1.5x overtime has been in the BofA paperwork since January when I got mine. But it also states that if this overtime applies to you, it will be "clearly stated" in your contract of employment. If it's not in your contract, I assume someone has read the paperwork incorrectly and started a nasty rumor.
I thought it was a weekly salary and not hourly.
Monthly, not weekly or hourly.
The banks changed it to be compliant with a recent change in the Fair Labor Standards Act. Interns are considered "trainees" or "temp" workers, which under the act, means that they have to be paid overtime.
I'm not familiar with the act, so don't quote me on this. This is just what HR told me.
If they changed the laws, wouldnt all banks be paying their interns 1.5x?
Oh and BofA does 1.5x for analysts in training too.
yeah I know a guy who worked in CS's LA office and they paid him 1.5x...the guy ended up making close to 30k for the summer (pre-tax).
Not necessarily because the law doesn't simply say "pay interns 1.5x." Basically there are different classifications for workers, and some banks are classifying interns as "temp" or "trainee" (or something like that), which is a conservative classification and calls for overtime pay. Other banks did not elect to do that.
I'm assuming that going with the conservative call covers the banks' asses somehow, which is why they chose to do it. But then again, this is all info I got from HR/Recruiting, so take it for what you will.
cs pays 1.5 for OT
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