Sometimes I am amazed when we are out at client dinners as a team or just chilling with analyst friends and I see people be stingy when tipping the service. Like excuse me you are pulling down 120k in a bad year and you are penciling in $4.50 for your waiter. What is the consensus on being generous after your first year or so of banking?
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Based on the most helpful WSO content, tipping generously seems to be a debated topic among bankers. While some argue that being generous reflects well on you, especially given the high compensation in banking, others may still be cautious with their spending despite earning six figures.
For context, first-year analysts typically earn around $100K-$120K all-in, and by the second year, this can increase significantly. Given this, many believe that tipping generously, especially in social or professional settings like client dinners, is a small gesture that can leave a positive impression. It’s also a way to show appreciation for service, considering the demanding nature of the industry and the financial privilege that comes with it.
However, as seen in discussions, not everyone adopts this mindset. Some may still be frugal due to personal financial goals, student loans, or simply out of habit. Ultimately, the consensus leans toward generosity being a good practice, especially as you progress in your career and your earnings grow.
Sources: Tipping MD in 2022, Tipping MD in 2022, Sales - debunking 8 MYTHS (From a veteran), FT: Goldman WRANGLES over whether to pay juniors higher salaries, Life in General Will Cost More Than You Think
Agreed. Every time my MD closes a deal I tip him a cool Ben Franklin and let him know how grateful I am for the experience. That one time we were sole advisor on a $12bn sell-side I even got his wife something from Tiffany’s. She seemed less impressed, but probably because I forgot to get something for each of their four kids. That was my mistake though, and next time my MD’s whole extended family is getting pampered after I’m done grinding to help close a big deal for him!
$4.50 on a $4.50 coffee is quite a tip.
I typically tip well. The one exception lately has been Uber Eats, which has gotten out of hand with fees and the minimum wage requirement for delivery people in NYC. I generally tip at least 20%+ on everything else where it is customary to tip.
Sorry for not tipping the guy that handed me a premade breakfast sandwich 20% when all he did was flip the screen around
120k is broke in hcol city so its understandable. and now that i make quadruple I still dont tip the pink haired behemoth that simply poured my coffee as mentioned above
lol you're at a client dinner and giving grief to the analyst expecting them to tip big? Partner/MD hosted, they/the bank can pay. They might (probably are) be trying to save and pay down loans while losing almost half their paycheck to taxes and almost half of what's left to rent. The lowest person on the totem pole who is effectively required to attend shouldn't be obligated to throw a chunk of change in just because someone carried over to them a plate of food that someone else made. Tipping culture is absurd in this country. You can tip big when you've already won life, but don't be a dick just because someone else decided they have something better to do with the money when it's none of your business. Get off your high horse.
I mean, if you're at a work event, then you shouldn't be tipping as a junior employee.
If you are out with friends, 20%. If you can't afford to tip a normal 15-25% for being served your meal in a competent manner, you can't afford to eat out. The reason the food is relatively cheap is because the restaurant owners is offloading the cost of paying his staff to his customers in the form of tipping.
If you get horrific service, that's different. If you order a $2,000 bottle of wine, I'm not sure you have to tip 20% on that, either. But the tip is your payment for labor. You wouldn't hire someone to paint your house, hand them a bucket of paint and a brush, and expect them to do the rest for free.
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