Hi, suppose you are at a bank that pays a significantly below-market base salary. Say $50K versus $105K.
Let's say you don't stay in banking/lateral to a better bank, so there probably isn't a standard salary structure at your next company.
How you can negotiate a significantly higher-than-now base? I'm saying that because you know you should be getting way more if you work at a competitor bank. For those who get paid at-market at competitor banks, when they jump ship, the salary negotiation is much easier. Much, much easier.
What am I missing here?
If you go to banking: At your next bank, you should be paid market. In lateral discussions I've had salary isn't even brought up because everyone knows the numbers
If you go to corp dev/finance etc: They'll ask more about your target comp than what you currently make, because your current salary is not really relevant to roles outside of banking. Coming from IB they'd assume you're taking a pay cut even if you're not. I've had many HHs tell me numbers in intro phone calls because a lot of bankers are not interested in that type of pay cut. If they ask your current numbers, redirect that you understand their role isn't IB comp, but your target all-in range is $X-Y.
Also, in both NYC and California it's actually illegal to ask your current/prior comp. This law was made more for blue-collar workers than investment bankers, but it means a lot of companies as a rule do not ask about your current numbers.
Very helpful. Thank you.
What if I'm cold applying, and not working with headhunters? I don't care for my 2nd year in banking or a fat bonus in 2023. That likely is over-promise anyway.
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