I've read on numerous threads that anywhere from 40 - 50% of associates make the cut for VP, but I'm curious as to how much self selection (exit opportunities, etc) plays into this. Of the associates who stay in and actually try to make VP, what percentage get promoted?
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I was in BB M&A and if you wanted to be a VP, you became a VP. It's pretty much baked in.
Director is where the scrutiny is applied.
VPs can get paid lower than associates. It's cheaper to keep someone on as a VP1 and kill them on the bonus since VPs are basically overpaid associates.
Yeah ok and an associate is basically an overpaid analyst....
And an analyst is an overpaid intern!
85%+ Few people are actually fired or told to leave. If you're willing to stay in IB through things pointing against promotion like an extra year at associate, a low bonus... you'll hit VP eventually. There's not a hard limit at that level like there is at MD.
Lots of post-MBAs come on as an associate for 2-3 years and then get married/start a family and look for lower hours. The 50% rate is attrition.
I’ve hardly ever seen someone not make VP who wants it and is up for the promotion. The really bad associates, and I mean really bad get fired or they don’t make it through the entire 3 years and leave on their own. The only associate I’ve seen be fired for performance issues was a complete disaster, so the tolerance is pretty high for low quality work. The Director >> MD jump is the one that is highly competitive.
Are there exit opps at the Director level? Not expecting like PE or anything, but is it common to exit for F500 corp fin at that point? Perhaps with a client?
I'm just a college student, but I am a little curious about this.
if it's anything like consulting the firm will actively help you find a position at a client. especially when you get that senior, you may be exiting directly to a role that can buy services from the firm.
I've not seen it too much to clients, and the support from the firm is much less as compared with consulting. At the Director level you've been working as a banker for at least 8-10 years, so the most common thing is to lateral to another bank to make MD (if you are not able to within your own organization). Other exits I've seen at post associate level:
VP - became head of corporate finance at mid level 'client' Director - became MD at industry focused investment firm Director - became CFO at small corporate in the industry
All were done on their own without support from the firm. The Directors were 3rd year and probably not going to make MD given a top heavy structure in my group
Thanks for your reply! From what you’ve seen, what would you say the promotion rate from VP to director?
Any mid bucket or above AS3 gets VP, unless the firm is going under or they did something very suspect (harass someone, swear at an MD) that doesn't get reflected in a performance review. Generally by the time you get to AS3, you have already passed the litmus test by not being bottom bucket.
You have to basically try to get fired as an associate at my firm. Even then, you'll probably still have the option to stay for VP.
I'd say most people that want it, get it. Some quicker and some slower but it's on the table for most competent associates that stick around. The really shitty associates tend to also hate the job and leave on their own accord.
Can confirm all of the above. We have a 2nd year VP who is absolutely useless and can't check a model for sh*t. We expect that person to either stay on as a super VP (we have VPs at the firm who have literally been in that position for 5 / 6 years) or exit somewhere less technical.
Call the boys in PWM. Time to add another Chad to the ranks.
lol - solid gold. I can already tell this dude is a great golfer and that 'clients love him'.
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