When to tell leadership you’re going to PE?
Monkeys, what’s the most appropriate timing for letting leadership know you’re headed to PE?
I have heard of people telling staffer and such a few months in advance out of courtesy.
I have heard of people using their comp call as their time of disclosure.
I have heard of people getting bonus and essentially quitting the same day.
I feel that disclosing too early runs the risk of taking a hit on bonus.
Disclosing too late can burn some bridges (e.g. you’re on a high-profile deal and quit in the middle).
What do you recommend?
The 2023 summer exit is in sight boys.
Realize this is as polarizing as politics, but I've done this for a long while and what has yielded the best results is earlier the better. While we all would love to keep good analysts on our teams, we know you're recruiting and expect you all to leave sooner or later. You're not fooling anyone with doctor appointments and wearing a full suit when you have worn sneakers every day prior.. it is a part of banking, and while it's new to you, it's not for everyone in the game.
Do not be afraid to bring it up, because we already know. If you speak with your staffer very early, when you are starting your search and be honest about your intentions, there is a strong possibility that the team will actually help you to act as a reference or even make a call or two for you - our team has done it for numerous analysts.
The caveat here is that you absolutely cannot check out... All of this falls apart if you slack off after getting another offer (people can tell, despite best attempts to hide it). At that point yes, you will likely get dinged because your performance and attitude subconsciously slide.. The perfect combination is someone who lets us know they are recruiting, keeps the team informed along the way, and grinds to the very last day of their job at the firm. This will allow your team to plan accordingly and helps the group and your peers out.
There is a high likelihood you will get rated well and paid equally as appropriately if you act maturely and as a team player to support the team to the end. I have seen it happen multiple times
And for those saying you and everyone you know got screwed out of your rightful bonuses - unless someone else can say they've been in the room - I promise you, having been thete when the decisions are made, you leaving has zero to do with your bonus. Outside of overall firm performance, it is completely dependent on how you perform through the last day. Bonuses are for past year performance. People can tell when you check out or aren't giving it your all, even if you think you are. The lower urgency, the increased wfh and days out, it doesn't go unnoticed. So, if you were top rated thru mid year then got an offer and started to slide, you're no longer top rated by EOY.
That said, there is nothing wrong with waiting to the last minute to disclose, but I have seen it work in peoples favor (references, referrals, and strong bonuses), not the other way around, for early disclosure.
Thanks for the thoughts. Sounds like you’ve seen this process through a few times.
Specifically, I signed an offer a few months ago. No one knew I recruited as I got offer first day of oncycle and just kept it moving. I haven’t spoken about it with anyone at firm.
So, the question is when to disclose this info? From a self-interest perspective, I’d like to preserve as much of the bonus I’ve earned as possible (especially this year as already going to be lower than anticipated).
However, I recognize the respect / courtesy that should be given to my team.
Sounds like you’d recommend discussing sooner rather than later.
Don't say a word until the bonus hits your bank account. Offer to stay on for 2 weeks after that to "transition your deals", but absolutely do not tell your group ahead of time.
You're not going to burn bridges as an analyst unless you've explicitly told them you're planning to stay on for A2A. In your comp discussion just say thank you and that you enjoy working with the team. I promise as important as you think you are on these deals you're completely replaceable and the team will have another analyst up to speed in no time. They're also not going to be surprised as this happens every single year.
Your downside risk in telling them is you lose out on 10s to 100s of thousands of dollars. Your downside risk not telling them is your associate is pissed he has to pick up your slack on a deal for 2 weeks. They aren't going to call your firm and get your offer rescinded or anything, the worst that happens is you can't go back to that bank if you decide you want to return to IB.
Congrats on the offer man, the grass was greener for me, hope it is in your situation as well.
Really appreciate the reality check my guy.
Sometimes we forget that anyone can price update a workbook and let people into the VDR haha.
100% agree with post above. Don’t say anything until you get your bonus. You’re getting some advice from folks in IB to say something early, that’s for their benefit and not yours. I didn’t say anything, generally was treated poorly at my bank (we all were) and checked out but the people that I actually had relationships with didn’t hold it against me. The points on this being a relationship biz are fair but the reality is, once your in PE you’re a potential revenue source for the bankers (buyer or seller). The last thing they care about is if you played your cards close to your chest and got a couple months of slacking off after ~18 months of grinding for them for ~$15 an hour. No one will care 12 months post departure, probably even 6 months post. Best part, if they do care (so unlikely after however long it takes you to make mid level or higher in PE) is you have other options. If they are selling a business you want to buy, they won’t hold it against you because they want a competitive process, higher price, higher fees. If they cover a sector you work in, no worries so do other banks. If you need a buy-side advisor, plenty of options. There is no upside for YOU to say anything. You won’t get to buy anything cheaper as a PE partner because you put yourself at risk and lost out on your bonus because you told early them 10 years ago.
If you performed well this year and were rated well, then you earned what you get. Take this down year out of the equation.This is a relationship business.
You could be a partner at xyz firm in 15 years. If you were a solid analyst, did right by the firm and went above and beyond, there is no upside to the firm being petty, if anything quite the opposite.
Treat them how you'd like to be treated and they'll do the same. But again, if you check out, then it's your own fault - that will 100% ding you.
Senior folks respect those who are honest and work hard to the last minute. That goes a long way in the big picture. I've helped decide comp and we have yet to ding a high performing analyst for leaving but grinding till the last minute.
Your call how you'd like to play it, if you're worried then don't say anything. But having been the room during ratings, this is my takeaway. We can tell when analysts have offers, work product slides, there's a sense folks get after seeing it enough times.
Whatever you decide, Good luck with the next gig.
Curious if you legitimately would not do business with someone if they gave you a short notice period 15 years ago..Specifics aside, I hear you and appreciate your comment
*Updating after your edit
Gotcha - sounds like the real issue is checking out / not performing at the same level once offer is secured. That will 100% not be an issue. Merely a question of when to let them know.
Think the opposite.. You're not going to get dinged for leaving, but it's the potential upside, not downside.It's a relationship. What I'm saying is that if you were a profesional about it, were high performing, and went out on a high note with the support of your team, then the firm would want to maintain a good relationship for the future where you may remember their kindness as well when you're in a more senior position. It's a two way street its not IB vs PE. Many of our loyal clients now are former analysts
Do it after the bonus hits your checking. Myself and my friends who told our teams before that got stiffed and fucked on our reviews (despite positive mid-year and informal reviews).
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