I’m sure that this has been asked here before, but want to get the latest perspective.
At my old bank, some Associates were very good at getting paid. Seriously, they would get a top tier bonus (at least 100%) every year. Others, such as me, would put our heads down, work, then get paid whatever we were allocated, which would be good, but nothing to write home about.
Got me thinking — in banking/PE/Private Credit, how should one go about getting paid the big bucks? How do you encourage your boss to pay you more than perhaps you should be?
For those who reply with something to the tune of “work hard & you’ll get paid”, I know, but there are some people who are much better at getting their hard work validated, and I want to know how they do it.
I’ve heard lots of strategies (“you don’t ask, you don’t get”, “you need to complain gently, all the time”, “you need to do sufficient admin crap”, “sleep with the MD”, “sleep with the MD’s daughter”) but want to hear about people’s experiences.
Putting your head down and grinding is not the way. Higher output =/= higher comp. "Just work hard and hope" is not good advice. People who do that don't understand the game.
This is a relationship business, not an analysis business. It's really not a big secret, but people don't "get it". The right "sponsors", and a good rep are what it takes.
Being visible is the play. Identify who has the weight and influence in your group and do good work for them. And again, do good work isn't just put your head down and grind. It's an opportunity to showcase your chops and your EQ.
We don't really do a good job of showing juniors how this is done. Tbh, figuring these things out is kind of the test. Again, relationship business, this kind of stuff is more important than you think.
At the very least, a positive attitude, being pleasant and helpful are the baseline. You build a rep as someone people enjoy working with.
Thank you — how would you adapt this if the comp process is complex, or if multiple senior people determine your number?
All that means is you have to finesse more people
Agree 100% with Rabbit here - your first task is to be good to very good at your role. Second is to be visible, promoting your impact/value to your boss at every opportunity. Your 1:1's, goals, any reporting you do - all of that should come through in spades. Bonus points is figure out the pain points for your boss and orient yourself to solve them - that will win your boss over.
The hardest part is building a consortium of decision makers who know you and value the impact you bring to the firm. Try and get to the point with your boss that you can ask, or push, for deals/work with other influencers that gives you broader visibility - and when you do, whatever that first interaction/project is - knock it out of the park. You'll be amazed as you grow in your career how low the bar can be - "oh yeah, I know him - he was great when he turned this around quickly. Great to see him progressing, let's up and keep him around'. Networking is the other part of this, build those relationships. Bonus points - if your boss has those in the firm who they struggle to work with or simply don't like to, but end up having to, being the 'person' who can interface can be a huge benefit. Tread lightly here, however it is another route to build influence.
Your first 5-7 years, generally, you are signaling the long term value to the firm and encouraging them to invest in you. After that - it's about creating/driving value to keep you in your seat. For most finance folks - that's either directly driving revenue or managing functions/people who drive the revenue. And when all else fails - leave, as you'll almost certainly find a premium in the market for top end talent.
If Claude/AI can threaten to do 90% of your job, the market does not value that 90%. Start doing the 10% you're not doing.
A good way is asking if your boss you are on track with all yearly goals, on track for promotions, raises, or whatever in September or October.
It's much better to be proactive (fix any issues or concerns before they lower your bonus) vs reactive (whining about bonus after is has been announced)
This always works
Start crushing.
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