Good idea or bad idea to lateral immediately after being promoted to VP? Would the new firm potentially take away my promotion and make me do a 4th year as associate?
Any other considerations?
What are your thoughts on the lateral market right now? Feels like it would be more safe to do it in a year from now given market trends.
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Based on the most helpful WSO content, lateraling immediately after being promoted to VP can be a double-edged sword. Here are some key considerations:
Risk of Losing the Promotion: It's possible that a new firm might not honor your VP promotion and could place you in a Senior Associate role or make you prove yourself for a year before officially recognizing the VP title. This depends on the firm's structure, your deal experience, and how well you negotiate during the hiring process.
Timing in the Lateral Market: The lateral market can be unpredictable. Some WSO threads suggest that entering the market at the right time is crucial. If the market is currently slow or uncertain, waiting a year might be a safer bet, especially if you can solidify your VP experience and build a stronger resume. However, if you're confident in your skills and have strong headhunter connections, you could still explore opportunities now.
Reputation and Storytelling: If you lateral too soon after a promotion, it might raise questions about your stability or commitment. Be prepared to craft a compelling narrative about why you're making the move (e.g., better growth opportunities, cultural fit, or strategic alignment with your career goals).
Market Trends: Some WSO insights highlight that lateraling at the VP level can be challenging due to the smaller pool of opportunities and higher competition. Firms are often looking for candidates who can plug in and add immediate value. If the market trends suggest a slowdown, waiting could allow you to assess the landscape better and position yourself more strategically.
Ultimately, the decision depends on your current firm's reputation, your long-term goals, and the opportunities available in the market. If you decide to wait, use the time to network, build relationships with headhunters, and strengthen your VP credentials. If you choose to move now, ensure you negotiate firmly to retain your VP title and responsibilities.
Sources: No VP Promote from Sr. Associate - Seeking Advice, No VP Promote from Sr. Associate - Seeking Advice, Making VP in 4 years?, Confessions of a former second year IB Analyst, PE Lateral Recruiting Advice/Stories/Help?
Bump - same spot
VP is a good time to move. Very hard to move as an D or ED without "starting over" to some extent. If it is a comparable firm, they should bring you in at your current level.
If you already secured the VP promotion, another bank won’t knock you back down to ASO if you lateral. The early VP years are a great time to switch IMO. You’ll likely get a good guarantee, and you’ll have a few years of runway before hitting the more senior levels. As someone else mentioned, it’s a lot harder and more annoying to switch as a director because you need to do a lot of internal politicking at that level and wouldn’t want to lose the goodwill you’ve built in your existing group. MDs with a proven book of business can leave any time.
Generally, the best time to move is right after a promotion as typically you will not get knocked a level when lateralling and it means you don't have to repeat a year. Would like to caution moving as a VP might make the initial year or so a bit hard since you have less institutional goodwill than the A2As or even MBA Associates who got promoted, but that's something that can be easily fixed by being a top performer; will massively help both for the ED promotion and in the long-run to look to also start building a book of relationships at the VP level. Would also say do not burn any bridges; this industry is shockingly small at the senior level and seniors move around all the time.
Could you provide some more insight into how you think you can best position yourself when moving to a new bank? Currently a VP and moving to another shop. Leaving behind a lot of political capital and goodwill as I'm viewed as a high performer by a lot of senior folks. How do you suggest to gain this back as quickly as possible?
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