Why do so many bankers change firm?
I am about to start as an analyst. What I have noticed is that a lot of people from my banks or from the one next door change firms frequently. For example 80% of the analysts from last year changed firm. 30% went into PE and 50% into another bank. On the other hand lots of new analysts also joined from another bank.
I would understand if the bank in itself is a big upgrade or if you would get promoted to associate but this wasn't the case. For reference I will start working in top 3 EB whereas the analyst joined a top 3 BB, and the other way around.
So again why do analysts change firm so frequently? Especially if (at least from the outside) there is no added benefit?
If it isn't to move to a top EB or BB like you mentioned, there's a very high chance culture / overall deal flow is involved, as opposed to solely compensation. Just because a former employee lateraled somewhere which may not look like an "upgrade" to those who care about prestige, they still could be receiving higher compensation from the new firm. Additionally, being locked into a low deal flow group or a group with horrendous culture / hours is, in my opinion, an even better reason to switch firms. That's not to say it will be any easier at the new firm, but at a certain point burnout is very real, and people start like at other options, regardless of "prestige"
Oh ok thats interesting. I always thougt that especially more recently when every bank adjusted their salaries due to Covid-19 that they pay about the same amount. But yeah maybe you are right about culture. I have interned at the firm for three months and while we were having difficult hours compared to the street culture was pretty much awesome. Especially the seniors where lit and regularly stayed late into the office and we even went out to get drinks on a weekly basis with them.
But yeah the hours to get difficult if you stay there for a longer period of time. I guess I can just wait and see now
There’s certainly a lot of datapoints thanks to WSO and a other resources like Glassdoor on the comp front, especially for the larger firms. There are plenty of MM, LMM, and Boutique firms that offer other perks that can be less transparent than the massive, global banks with 20+ analysts a class.
Some of these perks can be things like carry, offering incentives for bringing in business (at any hierarchical level), faster path to promotion, great mentors, more client facing work at a younger age, etc. The list of other benefits goes on, but you get the point that there can be other less apparent things to draw someone to a firm.
Could be any one of a lot of reasons. Speed up promotions (or even get them at all), more comp, better cultural fit with team, better interest fit with coverage/product group, better lifestyle, better brand, change geographies.
Prestige: the opposite sex usually doesn't give a damn about prestige. For those who do, you don't want to have a serious relationship, or even multiple dates.
Veritatis cupiditate voluptas eligendi aliquam et ullam qui et. Totam praesentium quo quia nisi repudiandae ex voluptatibus. In eum occaecati error.
Nostrum nihil aspernatur nulla fuga doloremque tenetur et. Ea repellendus ipsam et qui et provident sed.
Quidem et sapiente nemo aut. Voluptatem corrupti qui fugiat consequatur et dicta consequatur neque. Et et fugiat sit libero amet.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...