Buy-side junior bonus
Hi, I just wrapped up a year and a half in BB M&A and recently transitioned to a well-regarded PE firm as an analyst, with the potential for associate promotion next year.
I was wondering how buyside bonuses compare to sellside at the analyst level.
For sell-side, I know that bonuses typically range from 50-100% for analysts, but I have limited information on buyside since analyst programs are less common here.
What’s the typical range for analysts in the buyside, how does it compare to sellside, and how does it progress at the associate level?
Based on the most helpful WSO content, buy-side bonuses for analysts tend to be lower compared to sell-side bonuses at the same level. On the sell-side, bonuses for analysts typically range from 50-100% of base salary, depending on the firm and individual performance. However, on the buy-side, analyst programs are less common, and bonuses are generally more modest.
For private equity analysts, total compensation (base + bonus) is often in the range of $121k to $157k, as seen in recent compensation data. This suggests that bonuses might not reach the same percentage levels as sell-side analysts. At the associate level, buy-side compensation becomes more competitive, with total compensation for first-year associates averaging around $227k, including a higher base salary and bonuses.
Progression from analyst to associate on the buy-side typically brings a significant increase in total compensation, but the bonus structure may still differ from the sell-side, where bonuses are often a larger proportion of total pay.
Sources: Private Equity Pay vs. Investment Banking Salary, Q&A: Equity Analyst at a Sovereign Wealth/Pension Fund, From Private Equity Associate to VP in Private Equity, 2017 Private Equity Report – 8 Category Highlights, Bonuses for Investment Banking 2017
Can’t speak on PE analysts but for associates my bonus was ~125% and then ~150% the following year.
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