What were IB bonuses in &#039;03 / &#039;04?

http://forums.businessweek.com/n/pfx/forum.aspx?tsn=1&nav=messages&webt…

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uru

Senior Baboon

15y

Best Response

Well, many (including me) believe that the recession will be longer/more intense than any dips in the past 50 years. I think the gov't deficit, U.S. trade deficit, consumer deficit, and artificially propped dollar will make this an L-shaped slow-down that could last for decades, similar to that experienced by Japan in the 90s. Many people now in bschool are regretting their decisions, because they can't find even an internship (or are settling for internships that they don't want). Career switchers have been hit exceptionally hard - don't even want to think about those w/o experience. I'm trying to map out each different scenario (short downturn, long downturn, bschool, work, etc.) and make a decision based on expected payoff - guess I'm a game-theory nerd :(, but I've always thought in terms of long-term optimization.

This might be relevant to you as well, GordonGecko, as I know you are also looking into bshcool:

Password_Is_Taco

Senior Gorilla

15y

Well, you don't need to do banking right now for the money, but for the experience (right?). Why not take the BoA offer and run with it and build your resume for HBS? If you get fired, dust yourself off, join the peace core for a year and apply to HBS anyway. Then you are talking 5 years down the line before you graduate your MBA.

http://media.ft.com/cms/88acee50-f471-11dd-8e76-0000779fd2ac.gif

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ShreddiesBrah

Neanderthal

15y

Boutique Investment Banks

drexelalum11

Almost Human

15y

Note that chart is average bonuses, not specific to analysts, so use a percentage comparison to other years you have data points from to get your 03/04 analyst numbers. I think this exercise is pretty pointless though, as you're not factoring in inflation, the financial climate, enhanced variance between firms, and most of all the regulatory climate prevailing today.

Authored by: Certified Private Equity Professional - 2nd Year AssociateCertified Private Equity Pro

goalieman688

Senior Orangutan

15y

The worst thing you can do is potentially try and time the economy. If you can get into the banking now, it is a great time to learn the trade and potentially could ride the next wave up...

uru

Senior Baboon

15y

To GG: yes, it's more about experience, but pay is important in the sense that I should also consider whether I should still go into banking as opposed to what many of my friends are doing and jumping for the nearest exit, whether that be consulting, IM, etc.

Regardless, I appreciate all of the advice. From the chart posted, it seemed as if bonus levels did not get decimated, rather, simply fell their pre-boom (realistic) levels. I have decided that I likely will to return to banking, at least for the immediate term.

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drexelalum11

Almost Human

15y

uru:
To GG: yes, it's more about experience, but pay is important in the sense that I should also consider whether I should still go into banking as opposed to what many of my friends are doing and jumping for the nearest exit, whether that be consulting, IM, etc.

You'll be a junior guy in any of those careers, and all of them have steeply accelerating pay levels. It is far more important what you'll be earning and whether you'll be like your job when the difference can be millions than when you are talking about a 50k difference at the most.

Authored by: Certified Private Equity Professional - 2nd Year AssociateCertified Private Equity Pro

jimbrowngoU

Senior Neanderthal

15y

Considering they fell to '04 levels in one of the worst years in history, I'd say there's a good chance they'll rebound to '05 levels fairly soon. I would be surprised if '09 was as bad as '08, and as soon as things pick up bonuses will be back up to pretty ridiculous levels.

uru

Senior Baboon

15y

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