I was wondering how much everyone is planning on tipping their MDs this year. Would $1000 each (my group has 6 MDs) be too low for an AS2? I don't want to seem greedy or ungrateful, although this year has been harder on me financially… For reference, my bonus last year was ~25% higher and I tipped $1250 each – and I figure there might be some leeway this year given this environment.
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My group is pitching in to make sure my group head's bonus doesn't go down from 2021, despite doing half as many deals this year. We are splitting it even so it's around 10 grand a person, the analysts actually took out personal loans which our bank was happy to finance - totally worth it to keep them happy.
I also recommend passing around a page with names and faces, similar to the doorman buildings, as I didn't even know several of our MDs still worked here and it really helps when you're not sure if you've tipped that random EMEA MD yet or not!
It's reassuring to hear banks are using their platforms to support analysts in times like this
Given my MDs performance this year, I hope he gets a lump of coal.
Lotta MDs in Frankfurt would kill for a lump of coal right now.
Incoming FT analyst here. Are you actually supposed to tip your MDs? Never heard of this. How much of bonus/in what form?
EDIT: Keep the MS coming lads. Just asking questions and you're piling on as if there was a formula.
Yes this has been a thing for a long time in IB. Some firms are trying to phase this out as they see it as ‘too traditional’ but I think it’s here to stay!
“Understand the logic behind it”
God interns/incomings are stupid. Stop trying to fit in and pretend like you know what’s going on
Clarify with your staffer - only some banks do it so it’s best to make sure in case your MD doesn’t like that tradition
I may be too old / stupid to realize if this is satire or not. However, if it is real…. I have never done this and never would…
It's a bit oldschool, but still common at top BBs albeit through a more informal process than historically. The main rationale is that these guys have worked their ass off to get to MD and have sacrificed a lot to bring deals for us, but the self-interested rationale in it is that it also demonstrates that you can read the room.
I understand, but that is what their job is and that is why they get paid millions. Collecting a couple thousand from juniors who work just as hard at their job seems odd to me. Maybe I’m out of touch or just naive, but if I were an MD I would never accept it.
Just given inflation, I'd pony up a bit more than last year. $1,500 or so feels right
some of you guys above are some real idiots and I pray for you.
It makes sense when you remember that half the posters on this website have autism
Like others have mentioned, $1,500 is market this year for AS2. At the very least I'd advise you not to tip less than you did last year - imo it reflects poorly
Instead of tipping your MD I recommend giving your MD your tip to assert dominance.
Mind blown that some analysts don’t do this. This is why you’re prob bottom bucket. Tipping your MD is just like tipping your waiter or your landlord. Very common US practice.
It’s better to give than receive, that’s what I've emphasized to my kids. This year, my family has accepted that there will be no gifts under the tree so that I can make a gratitude payment to my MD and his family (wife, 4 kids and 2 other dependents (think aging parents, illegitimate children, gay boyfriend, etc.).
Even I, as an intern, tipped my MDs that I've worked with my entire internship salary (to each, worked closely with 3 in total so took out loans). I believe this helped me in securing that return offer. To pay back the loans and to tip my MDs fairly as a full time analyst, I'm currently working 3 jobs while in school and also sold my kidney recently. Tbh the jobs haven't contributed much to my MD tipping pool so I'm taking suggestions to what other organs I can divestitute to contribute to my tipping pool.
MD here. It varies.
At my prior bank (BB) there was a cap on cash tipping, which was quite annoying. MDs would have to also complete a cash tipping form and get that signed by the analyst to show that it was all consensual tipping (it was mainly so we can cover from any legal liabilities).
It was so annoying to everyone and the cap was so low (think $1000) that many analysts and some associates would buy gifts instead. The problem was that they wouldn’t coordinate - one year I ended up getting 2 iPads with the apple pen (guess my markups were bad…). It was nice gesture, but very inefficient (gave one iPad to my son).
At my current bank (boutique) there are no rules, so it varies. If it’s an analyst that I haven’t work much with I wouldn’t expect much. Maybe $1,000 cash. If I’ve worked on a deal, I’d think $2,000 is appropriate.
Anything above $5,000 I’d feel it’s a bit inappropriate, especially considering that we are 4 MDs in the team.
Just curious. You make much much more than analysts and associates and create a bunch of shit for them to do that their lives are absolutely miserable. And each still has to put together a couple of grands to show their gratitude? Do you feel like you actually deserve it? Isn't this your job to bring in deals? This is so pathetic. If anything, I would rather go have a nice dine with my MD and have an honest discussion to build mentorship and friendship. Just because MDs are older and higher up in the ladder doesn't mean he is a god to analysts and associates. They are still humans and could be wiped like dust and dirt
NGMI
Who do you think gets the bigger bonus from the MD? Analyst A, who the MD knows will split off a certain % of his bonus to pay to the MD as a tip, or Analyst B, who will greedily not tip the MD.
All these people in threads talking about "bonus is down 20% this year OMG". Wonder why that is. Always tip!