What are starting M&A analyst salaries these days?
Hey all, I am an executive at a boutique, deeply sector-focused M&A and fundraising advisory services firm. We're a small firm, just ~15 bankers. I'm looking to hire an analyst who could work remotely from wherever. I've been interviewing one and was astonished to hear the base salary range she was targeting. I know inflation is rampant and good talent is becoming more expensive, so maybe I'm behind the times.
So, what is the starting base salary for an analyst at a boutique M&A and VC/growth equity fundraising firm? COL doesn't really matter because the person could work wherever. I'm thinking someone right out of college.
Appreciate your thoughts
Big thread on this, link below. Pretty much anything less than $100k and you'll be hiring someone where you are their only option. Potentially get someone for $90k as the remote work aspect is attractive to some.
https://www.wallstreetoasis.com/forum/investment-banking/2022-consolida…
This.
There is no shortage of graduates leaving undergrad without offers willing to take that discount just to break into the industry. Honestly, if I was fresh out of college I would easily take $90k if I had the option to live wherever I wanted instead of some shit major city like NY, SF, Chicago (spent most of my IB career here), etc., where most IB roles reside.
Do you want that kinda person, especially in a remote, unstructured environment? Personally I would want a higher quality candidate, not someone who is desperate.
There are more "high quality" candidates applying for these roles than there are available seats, plenty of great candidates out there who don't end up landing an offer. IB is not hard and you don't need to be a genius to do it, you just need to be someone willing to work hard. Would definitely prefer to hire someone who wants a remote unstructured work environment because I don't need to babysit someone with that kind of personality.
How are you completely oblivious to the retention issue associated with paying below market and taking advantage of a junior’s situation? If a boutique is already nickeling and diming me over $10k base, I’ll have no faith in them paying appropriately down the road and I’d be looking to lateral for more money, prestige and better deal flow (the latter two being areas which the boutique can’t compete at all) later on.
my how times have changed. I remember when LMM boutiques were hiring analysts at 60k base!
2 years ago market was $85k for a first year so $60k at a LMM wasn't too far off base, there was a bit of an Analyst revolt and a lot of bad press that forced banks to bump first year comp to $100k+. Minimum you could probably get someone for these days is $70k but that's someone who is desperate and looking to break into the industry with no other options and they'll most likely lateral to another bank paying market comp first chance they get.
would say base salary 60-75k
I’m sorry to break it to you but no bank is paying 60-75k. There would be no reason to be doing m&a at that price. That is absolutely ridiculous. Market is $110
I took a job late 2020 for $70k in nyc doing m&a and I'm now at a bb making 125. So there is a reason to accept the discount but as the employer you'll have negative retention
At BBs yes I agree with you, but at local boutiques no. And it is base salary, so of course it can be even bigger depending on performance and deal flow
If someone's options are no job in IB or a job in IB at below market comp, only an idiot wouldn't take the offer because then you at least have a chance at lateraling to another bank with market comp. The hardest part about IB is actually breaking into the industry so once you're actually in lateraling is easy.
Great insight.
I feel like your year end review reads something to the effect of: reading and comprehension skills need improvement. I was speaking from the perspective of a candidate, obviously not great idea from a retention perspective for a bank. Boutiques will always struggle to attract and retain talent be it because of comp or prestige.
Weird
And then there's us in London
Where is the job posting lol
I will preface by saying I no longer work in IB, but remain in touch with many people who are. As people have mentioned above, “street pay” at BBs, large MMs, and large boutiques is $110k, with a few paying $100k or $105k. Now unless you are at a Dyal or Ardea level, you will be hard pressed to find a 15 person boutique paying anywhere near street, especially in LCOL cities or for remote positions. From what I’ve seen, LMM regional boutique banks were paying ~$55k base for An1 in LCOL cities pre-COVID. I would expect that to have increased to $65k given the recent pay bumps, and maybe even as high as $75k. Bonus structure is even less clear, pre-COVID was anywhere from 20% of base (not the type of place you make a career at) to 100%+ of base. I would expect a similar % structure with the recent raises. Some interesting data points to consider, 5/3 pays $80k base apparently (cannot personally confirm), well below market for a national bank. Crosstree Capital, a smaller industry boutique in Tampa, pays $100k base.
Now if you are able to pay $100k+ base for an An1, you should certainly do so as it will attract better talent, especially if your bank does not have a strong brand. But in terms of what candidates might be expecting, if they would be working in a LCOL city, probably no less than $65k. A high COL city and they would probably expect closer to $75k minimum (keep in my mind An1 “street base” was $85k pre bumps). Not sure what numbers you heard from the candidate you have, but it is possible they did not realize that small firms will likely pay below street or were trying to keep from being lowballed (which unfortunately happens at some places). I’m not here to defend paying below street, especially if there isn’t substantial upside in the bonus to bridge the gap, but the economics are simply not there for a lot of smaller boutiques. As was also mentioned above, if you do pay below street, you will most likely have trouble retaining high quality employees, but even if you do pay well, you run the risk of losing out anyways as they seek bigger brand banks for an edge in PE recruiting/other exit opps. Some other factors that may influence the expected salary of candidates would be your firm’s name recognition, bonus structure, expected WLB, and overall benefits package.
out of curiosity, are analysts at LMM boutiques making 55-75k working normal banking hours? Can't imagine doing this job if I was wasn't even able to break 6 figures even when factoring bonus. A lot of cool 9-5 gigs out there that are more chill.
LMM boutiques can vary substantially; there are boutiques were the average week may be 50-55 hours with occasional sprints as live deals heat up, and there are also boutiques where you are working 70+ hours a week with some more brutal stretches throughout the year. Unfortunately, the VP above hit the nail on the head, there is a revolving door of people who are more than willing to accept the horrible pay and work the long hours if it means they are able to break in to the industry.
Probably no less than $100k base for a remote position. I'm sure you could get someone in the $80-90k range but they likely won't have prior internships, potentially no finance degree, and be looking to jump ship within a year given the under market salary.
The COL argument is not really relevant for a 23 year old, anyone with the skills you're looking for is likely going to be living in a city and not Montana.
F that, if I'm fresh out of college and given the option to be a banker AND live in Montana I'm taking that offer all day, even over a BB or EB. I'm a very outdoorsy person though so I may be one of a few.
Send me a direct message...
seriously dude, slinging MS for something you jokingly disagree with? come on now, you're not a prospect anymore
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