Credit Risk Management BB - Got an offer Associate level.... But offer might be too low - 75K
Dear all,
I recently got an offer from a BB in NYC to work in the credit risk management group (Financial institutions) - The offer is 75K. No signing bonus - Year end bonus of 10k. - My sources (BB ops, MM in DCM) tell me that 75K is a low base at associate level - That it should be at least 85K - considering I have 2 1/2 years of commercial banking experience as a credit analyst. My salary in CB was below 55K yet market rate should prevail in my opinion. Is 80K+ a feasible number?
Given the ample experience of some in the WSO community, your feedback will be appreciated. Is it worth taking the job or just keep looking for a better rate somewhere else.
-Another Monkey in the Jungle
That sounds about right to me.
55 to 75+ and your complaining? You don't realize how difficult it is to get a job these days.
Nolstagic_Monkey you bring a valid point - It is not easy to get a job yet I believe it is fairly simple to get a job with the right strategy, a ridiculous work ethic, relevant application, network, etc. The "it is fine", "the economy is bad therefore just settle" mentality is not a philosophy that I want to live by - Yet I dont want to be foolish hence this post. I do value your comment. Perhaps I need a FO job which I am capable of doing if I want more. This just happened to be the first offer I got. Originally I was told by the headhunter that the range was between 70K - 90K but once the offered was made he insisted that they can only raise my salary so much because of my previous salary.... In my opinion he is taking a chunk of my base so I know I can get more somewhere else. Thoughts?
If you can provide solid information that that number is low, tell them. Have you spoken to someone in your exact / very similar position at the firm? The aren't going to rescind it because you told them that street pay is 85. If they up it great, if not, you get a nice raise anyway.
JrMistMaker - Thank you for your comment - My sources are people in other banks in NYC not at the one I got the offer from. I have not spoken with someone in the same exact position. Unfortunately the negotiations were through a headhunter who I believe is taking a chunk of my salary. The initial range was 70K-90K for the associate level. The agency claimed that they can only raise my salary so much because of my previous salary. Some of my friends tell me that argument is just nonsense. Is it normal at BB MO to give a 5K-10k raise in one year? I want to be careful with this as it can be my foot in the door towards the S&T group later on (please feel free to tell me if I'm wrong) given that I would be working with traders or a place that I can acquire solid work experience prior to MBA.
Yeah, IMO that argument is complete BS. They are just trying to save 10k. Thing about it from their point of view, if you can pay someone 75K then they are worth 85K you are going to try to pay them 75K.
Again, I would, in a respectful manner, tell the HR person "I have spoken with other people in very similar roles, both at this bank and other, and street pay is 85K. I think I am worth 85K because of X Y and Z. What can we do about this?" Like I said before, if they bump it great, if not, take the position and deal with it next year.
Additionally, if they don't bump it, next year argue for a larger raise. The will know they got a bargain on you and that there are plenty of other firms that will pay you properly if you are good.
Might want to run some filters in the WSO Company Database on the compensation tab and see if you can find some decent comps in NYC...
I think base sounds about right, maybe on the low side, but bonus is a bit harsh.. is that a committed number or is it subject to performance? And is it fixed or variable?
I thought that credit risk salary was in line with IB but with lower bonuses..?
That would imply a 1st year associate base of 100-110k. So no, it's not in line with IB.
Credit risk analyst at Citi (before group got merged with corporate banking) was paying 70k base for 1st year analysts...
$85K all in for a MO role, I would say that is about fair. You probably work 9-5, maybe 9-7 sometimes. I would consider what the career/salary progression is and put more weight on that. If you are nearing $100K in a year or year and a half it might be worth it to take the slight bonus hit.
Head hunters get a % of your first year salary, they don't take a chunk out. Furthermore, the job comes right in the middle of your range. I don't get what the issue is. This is a MO job with decent hours paying close to 100k. Not sure how much more you think it should pay.
Getting a FO job isn't easy at all. I have a bunch of friends with good degrees, relevant experience and networking like a beast and only some interviews, not offers. It's a buyers market
Take the job, don't take the job. But don't discount it or think something better is going to easily fall in your lap.
TNA - I see your point. I am definitely not discounting the opportunity. It is a good name BB and it can open doors in the future. While I see the stars I try to keep my feet well grounded. So thank you for you input. Honestly, it might be an expectation issue because all this time the negotiations were 85k+ base and when he came with 75K base it made me wonder why the change. About job Execu|Search, by simple I didn't mean easy. I understand it is a difficult and tiresome process.
Your expectations may be too high. You were making 55k previously and now think you can get more money because your friends who work in different roles told you so. You were in commercial banking as a credit analyst before (as was I), and they will need to teach you a lot before you can be up to speed. On the topic of recruiters using past compensation as a determinant of future pay: in a phone call with a recruiter from operations at GS, he mentioned past comp as a large factor in what they will offer you.
An "offer from a BB in NYC" implies you are not currently in NYC; Do not discount that commercial banking/credit risk generally pays less i.e. "salary in CB was below 55k" might be keeping you flat COL adjusted.
I would think of it this way: Do you want and appreciate the opportunity? Does it add value to your life/goals? If your biggest issue is $75k vs. $85k, ($10k gross, $6k net after fed, SS, and sales tax; ~ $100.00/per paycheck after COL) then you might need to reconsider.
Aside from that, I am familiar with CRMG of BBs and assure you that the pay at senior levels is quite attractive.The exit ops to CRMGs outside of NY are pretty solid, and if the worst decision you make is $75k vs $85k, seriously, you have bigger issues to worry about.
Family and friends at Citi/JPM/SocGen.
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