Analyst called me and said he's switching shops and wants to take me with him. Currently at a BB and he's going over to a MM. Our current coverage is a bunch of B-tier companies and he said we'd be covering more A-tier companies at the new shop. So, a step up in coverage, but a step back in firm reputation.
I'm currently at the AVP/Sr. Assoc. level with ~2 yrs ER experience and ~4 yrs industry experience, so, 6 yrs total. TC last year was $200 ($150 base/$50 bonus). I'm thinking of asking for $250 TC ($180 base/$70 bonus) and title promo to VP to follow him.
If anyone else has changed shops with their analyst, can you share what your change in comp was? Do you think what I'm asking for is reasonable?
Based on the most helpful WSO content, making a move from a Bulge Bracket (BB) to a Middle Market (MM) firm, especially when following an analyst you've worked closely with, can indeed be a strategic career move under certain circumstances. Here are some considerations and insights that might help you navigate this decision:
Coverage Quality vs. Firm Prestige: You mentioned moving from B-tier to A-tier company coverage, which could significantly enhance your resume and open up new opportunities in the future. While the firm's prestige is taking a step back, the quality of your work and the companies you cover often speak louder in the long run.
Compensation Expectations: Asking for a $50k increase in total compensation (TC) along with a title promotion to VP seems ambitious but not unreasonable, given the context. It reflects confidence in your value and acknowledges the risk associated with moving to a smaller firm. However, compensation adjustments can vary widely depending on the firm's pay structure, the perceived value you bring, and market conditions.
Negotiation Leverage: Your 6 years of combined experience in equity research and industry give you a solid foundation to negotiate from. Highlighting your contributions, especially if you've significantly contributed to the team's success, can strengthen your position. Be prepared to articulate your achievements and how you plan to contribute at the new firm.
Market Benchmarking: It's beneficial to research and understand the typical compensation ranges for a VP in equity research at a MM firm. This information can help you set realistic expectations and provide a benchmark during negotiations.
Consider the Long-term Career Path: Beyond compensation and title, consider how this move aligns with your long-term career goals. Will the new role offer better exposure, learning opportunities, and a path to further advancement? Sometimes, the strategic benefits of such a move can outweigh immediate financial considerations.
Feedback from Peers: While specific compensation changes can vary, peers who have made similar moves can offer valuable insights. Factors such as firm culture, work-life balance, and the team's dynamic are also crucial to consider.
In summary, your expectations seem grounded in a solid understanding of your worth and the potential benefits of the move. However, it's essential to approach negotiations with flexibility and a clear view of your long-term career objectives. Remember, a successful career move is not just about immediate gains but also about positioning yourself for future growth and opportunities.
Sources: Why do IB directors change shops?, Q&A: London L/S + event-driven analyst, Good time for a new analyst to join L/S hedge fund?, Advice to an IBD analyst, Why do IB directors change shops?
Are you learning a lot?
Do you like your analyst?
Are you a sellside lifer or trying to get to the buyside quickly?
Not learning a lot currently. I think I would learn more by building out coverage on better companies.
I do like my analyst. But I can tell he's been on autopilot the past 3-6 months, so might have to kick the work hours into a different gear at a new shop.
I'd like to go to buyside, but I find the positions that open up for my sector to be very sporadic. I've reached out to a couple recruiters to see if I can put something together soon, but not going to hold my breath on that.
This depends on a lot of things and you need to take a long term view. Most importantly you need to figure out if you have the following: Do you have leverage with your current firm? Is the management at your current BB comfortable with you taking a few names as a lead analyst? And are you comfortable doing that and can you drive client interactions? Can you get management to guarantee a certain bonus/ pay increase, title promotion for the next cycle. If the answer is yes to all the above, then I’d say you shouldn’t move. Otherwise, you’ll need to see what kind of offer you can get from the MM firm. Lastly, there are various tiers within BB and MM shops, so that needs to be factored into the consideration as well.
I honestly don't know if my current firm would counter. Our coverage is more important to banking than the ER department, so it's very easy to see how little the DoR values our coverage (hence why my analyst is leaving). But I think the DoR knows he can't let the seat be empty.
The proposed MM does not have a bucket shop reputation, so I'd be okay on moving there as long as they play ball on comp negotiation.
Can you define bucket shop?
What sector are you covering? Have some people I know at BB’s in healthcare (non biotech) telling me they’re making 200k on base. I have a hard time believing that given their exp on the SS of 2.5 years.
Not going to say what sector. If they switched shops in 2022/2023, I would believe it. If they're a top BB in NYC, then maybe. If no to both of those things, then I don't believe it. Maybe $200 all-in.
Yea did switch shops in that time frame… crazy man. I got one offer from a MM this year covering biotech. They offered 115k plus 25% bonus.
Apparently a few years ago they were giving first year biotech guys with an MD like 200 - 225 k all in
Maybe ask for coverage?!
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