Why do people care so much about analyst compensation?

Because it's a measuring stick of where you are among your peers.

Tiering also makes a difference in terms of what exit ops are open to you. The money doesn't make a big difference, but it matters in a lot of ways.

If you bust your ass and don't make the same amount as the next guy, it will probably make you feel like shit.

Some HF and PE won't interview you unless you were top bucket (some exceptions for certain banks)

all else equal, why wouldn't you go for the extra 20K??

we wanna get PAID

Because they are dumb. Those are the same kids who will give up and leave after 1 year instead of 2 in banking.

because we know how much our intelligence is worth

Sorry, I completely understand why getting a top bonus is important. I'm moreso complaining about people asking how well each individual bank pays.

20K is alot of money, and over 2 years you're talking about 40K. I understand what you are saying, but you are also assuming that everyone is going to be a career banker or have a similarly high-paying profession the rest of their lives, which isn't necessarily the case.

Or you could put it this way: assuming you spend 80K on living expenses, a salary of 120K vs 100K is the difference between saving 20K and 40K a year (excluding taxes).

if you are doing the same amount of work, why the hell wouldn't you want to bank an extra 20k per year?

Are you implying that many of the people who leave after 1 year are fired?

Speaking from personal opinion, the year end bonus isn't really publicized anywhere, so in comparing an Analyst's job in New York City to other jobs it is important. The cost of living in NYC is so much higher than many other major cities, and as a result a 20K difference in salary makes a difference.

I know in my case I was considering another job in Washington DC. Without information about the year end bonus, the defense consulting job in DC was equally attractive. While money isn't the be all and end all of the job search, it can help differentiate jobs, so asking in a forum like this can help some people ease the pressure of asking their recruiters.