I see a lot of posts where people mention how banking compensation has decreased post-2008. I’ve never worked in banking but have a general sense of what pay is today thanks to my friends and what is posted on this site.
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Aware of a S&T MD who made upwards of $10 million in 2007 (was known to be a very risky trader) before he got canned in the recession. Retired in his early 40s, drives a sick Ferrari, and has a gorgeous wife. Apparently the person I know who worked under him said he was a rainmaker so $10+ million in 2007 wasn't his only big payday.
Post MBA associates were clearing 300K+ in 2006-2007 which with inflation is $400K+. Making $1 mil as a VP1/2/3 wasn't uncommon.
Theres a great bonus thread here from 2006 2007 where people are whining about their 115k base and 400 bonus as associates.
Haven't heard of anything that high but wow. Anecdotally heard some ASO last year at some HC group/boutique cleared $600K. Anomalies do happen but maybe back then those absurd bonuses were more common at the associate level.
Any rumors on why bonuses got so whittled down. I am sure it has to do with the amount of risk banks can/will take nowadays.
Not entirely sure to be truthful. All I know is back then, no one really wanted to work at boutique banks (as much as the prospects may now due to the fact that bulge brackets had a ton of products/services for their clients and were paying at the top of the street).
Because banks are making less on fees as an overall pool. You think juniors have it bad, seniors took a way bigger paycut
bump
Google: lehman brothers bonus sheets
First result.
You are welcome.
Edit: Should have just posted the link - https://jenner.com/lehman/docs/LARRY%20WIESENECK/LW%2000893-00927.pdf
Holy sheeet 4.8M bonus on a 200k base...
This is crazy. Saw one of my MDs on there. Surprised he’s still working after how much he made over a decade ago.
Don’t forget that half of that is Lehman stock… in 2007. No doubt all of these guys were doing well and I’m sure most still built up meaningful networths, but there were probably plenty who lost 7-8 figures when they BKed
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