Fellow Incoming Analyst Got Higher Comp in Their Offer - Should I Be Mad?
Hey everyone. Here's some context on a pretty unique situation that I'm having to deal with that is really messing with my thinking.
I spent the past year interning for a decent shop, doing work for them over the summer and during my time in school. I'm graduating this year and was the only intern they gave a return from the summer, so I was psyched to start at first. The comp I was offered was on the lighter side (about 100k all in) but I said whatever, and rolled with it.
Fast-forward some months and I hear from an associate (they're a friend) that they're hiring another analyst to join with me. I'm hyped to hear it because I think its cool to have someone else come onboard. They hire the analyst, bring them in to meet everyone, we get along well.
Recently I found out (and confirmed with the associate) that this other analyst, who's going to do the exact same job as me, and is also still in college, was offered around 30k more.
I know that comp at this level doesn't really matter, but it really bothers me that after working here for more time that someone who was brought in is getting a bigger paycheck. It kinda feels like a betrayal, and what worries me is it might continue with me being paid less if I get promoted later. Should I address this in some way? Or is it better to just try and forget about it? I just don't feel right about it.
That is a shitty situation - especially if they're the same experience / seniority as you, you should be mad, I know I'd be furious.
Unfortunately you're in a tough position to act right now as you're a new employee and frankly to the seniors, very replaceable as a brand new analyst. I recommend you bring it up, but the question is when and how. If you are close to anyone mid-level / senior (maybe even your Associate friend), you can ask them for advice / see if they may be able to advocate for you. If not, I would wait at least 3-6 months, ideally after a stellar mid-term review so you know they like you (and have a bit more leverage), then mention you understand your pay isn't market across the industry / even within the firm.
While you do that, I'd recommend for you to reflect on how much pay matters to you as frankly, in my experience, firms that have a history of underpaying usually don't change. I'd also start thinking about recruiting elsewhere. Let this also be a lesson that the best time to negotiate comp is before you sign full-time, not after. Unfortunately, most employers care little about you once you join, but are more willing to make concessions before you sign.
Thanks for the advice. I was told by many that you usually don't have any ability to negotiate analyst comp at most firms so its annoying to know I may have been able to before. I have other options for firms since I don't start for like 8 months, do you think its worth exploring those?
That's somewhat true as junior comp is fairly standardized, but you never know until you ask so always good to do so next time.
To be clear, if you're talking about finding a different FT offer and reneging on your current one, that is quite a different option. I don't think anyone can fairly get mad at your for asking for market / fair comp package, but likely some people at your firm may be pissed if you renege. I'd suggest you carefully consider the downside, which would be potentially never working at this current firm in the future, and potentially souring any close contacts that the current firm has also (as people talk).
That said, and some people will disagree with me, but I don't think reneging is that terrible of a thing. It really depends on your situation. To give you an example, if I was at a LMM PE firm and reneged and joined an UMM firm with better brand, reputation and comp, that seems worth the potential of burning bridges to me. But lets say I had an offer at Francisco Partners and reneged to go to Warburg Pincus...probably not worth reneging, be better to save face and work a bit then leave
Bump
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