Take the [low] Offer?
Hi guys,
Received an offer last week at a regional MM bank in LA. It's a 10 person shop and deal flow there is limited (5-15) and transaction value ranges from $50-$300mm. That said, they offered me a senior analyst (so 2-3rd yr) position with comp of $65k base+100% bonus. Should I take it? They gave me two weeks to decide and said that although the base is low, I could be (potentially) make a lot more in the coming years. Not sure how reliable that is but I really do like the firm and the people and I do see room for growth. Went through four rounds with them so I got a pretty good sense of what they're looking for.
That said, I personally think the offer is a bit low considering that I've been working for almost three years. Last year, I pulled down $100k+30% bonus at an Asset Management firm doing investment strategy (I thought the job was pretty BS, just looking at different investments and macro drivers). I wanted to be in more of a transactional role so I started looking around. Been looking for three months and that's the only offer that I got in banking. Have a few more interviews coming up but I need to seriously consider this offer by next week.
Thanks guys.
If you have the 100% bonus in writing I would absolutely take the offer and run. You are looking at all-in comp in line with what the range is for first year analysts at BBs / MMs (maybe a hair less). If they are assuring you bonuses are 100% without putting it in writing, I would be highly skeptical because you could potentially be screwed out of a lot of money when push comes to shove, due to your low base.
Regarding your coming in as a 2nd/3rd year analyst in title, I would treat this simply as a concession to your AM experience on their end. For all intents and purposes, you are going to be treated and paid as a first year analyst. I would take the offer and title, get experience and lateral after a year. After you lateral you will be comped as a "true" 3rd year / or 1st year Associate. I think it's a no brainer to take the offer.
Iggs, thanks for the input. I did get the bonus number on paper/writing in the offer letter. However, the language states that it's discretionary...tied to individual performance, firm performance, etc, etc. I might need to take that with a grain of salt.
Decline the offer. That base is pretty paltry (first-/second-/third-year analyst bases are now 85k/90k/95k). Furthermore, there is no guarantee that you will be paid this bonus. Is this a year-end bonus, or is this bonus paid out as a percentage of transactions closed (or something similar)?
It's YE bonus
Does the firms name start with an I?
I rather not say at this point....
If it's the place I'm thinking I'd really think long and hard. They only have 4 employees and havent closed a deal in about a year. Not sure they could afford to pay that 100% bonus with such little deal flow. Unless you are dead set on investment banking and don't mind working for $65k and then lateraling out, it may not be the best option.
Negotiate the salary to be 85k+, otherwise i'd walk.
I am highly skeptical about the bounce. If they are willing to pay you 100% bonus why don't they raise the base to makes it look better? You are likely to get a low base and low bonus at year end
Good points, will try to push for street 1st yr pay. Hoping it wouldn't affect my bonus...
Bump.
Pretty sure I will get another offer in three days. This firm wants me to accept in two days. Any idea how to push back the offer acceptance date? Thanks guys.
Perhaps be honest with them & explain the situation then ask them if you could push it back by one day?
Although there is the risk they'll say no and if this is the case then it is likely they know that their offer is not good enough.
And if you do get an offer at this other place - how good do you think it will be? Is it a bigger bank or...?
It's a lot bigger and better deal flow and is semi well known. From my conversation with HR, base is higher but lower bonus target. It's probably a wash. I like the second offer better overall and can see myself working there...
HR is talking with management and they know I have an offer from the first place so they are trying to speed things up. Problem is, they acknowledged that they know my offer from the first place is due on x day and the best they can do, apparently, is on x+1 day b/c they need to put together a package...
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