URM Wage Gap in PE
I’m a URM at a top target who will SA at a PE firm this upcoming June. I recently spoke with some other interns from my school who will be joining the same firm and group as me, and turns out they are getting paid more than me. The difference is minimal (3k) or so but is still a significant percentage of a full year summer analyst salary. I feel exploited for this and feel that they only did this because I’m a URM. For context, I’m the only URM intern coming in to the group as far as I know.
How should I bring this up or should I even do anything about it? I don’t want to destroy my chances of getting a return offer if that’s a possibility. Thanks
Honestly I highly doubt this is the case. An interns summer pay is pretty standard.
Who hit me with MS?
Do you honestly think that in this day and age, a reputable PE firm would pay an URM 3K less for a summer internship??? You honestly think they would risk blowing up the whole firm to save $3K????
Come on, think logically, that is one of the more ridiculous things I've ever heard. PE firms go out of their way to HIRE URM.
Don't listen to anyone who outright says "I don't believe you". Doesn't matter if you're lying or not, that's not an appropriate response. People should be helpful in the event your story is true, because if it is true, then you should address it.
Unfortunately you are just an intern so it's unlikely there's much you can or should do. You are likely fighting for a return offer. I don't know anything about the experience of being an URM so you'll have to take this with a grain of salt. But if you were in a full time role, you would want to collect as many data points from your peer cohort as possible and present them to HR and ask why you are underpaid. However as an intern I could see there being soft consequences to doing that vis-a-vis no return offer. I am not a legal expert so while I believe that would in some regards be an unlawful / unfair outcome (anyone can correct me on this), the specifics don't really matter as it's entirely within the realm of possibility. Your alternative would be to suck it up and get through the summer and eat the $3k because your career is long and you want to do what you can that maximizes your odds to live to fight another day.
Godspeed and again don't take it to heart when people assume you are not telling the truth, that is generally the response when women and minorities open up about their status on WSO in order to ask questions specific to their group.
I agree that if this happening it would be terrible and you should address it. However, I am having a tough time believing that a top PE firm (I am assuming since it is an SA) that most times actively seeks out and prioritizes diversity, and then goes on LinkedIn and brags about how socially woke they are, would then go ahead and pay URM interns less compared to non-URMs in identical positions. Again, if it is happening, I am sorry and you should address it, but I have my question.
Are you a sophomore and they are a junior? How comparable are the backgrounds of your peers vs you? Just trying to think of things that might be causing it.
I am sorry if this sounds insensitive, but I don't really care. You go to a top target and happen to get an opportunity, from what is likely a MF, that 99.999% of people in finance can only dream of, willingly accept that offer and you feel exploited because you will make 3 grand less for a summer. Now I am not saying that you got the offer because you are an URM, but I can almost guarantee you that you being a diverse candidate had a positive impact when the people in HR saw your application. I can also assure you that no reputable firm would knowingly pay URMs less because that is illegal, a law suit waiting to happen, and would wreck a firm's ability to raise funds from LPs, at least for a while. Additionally, employment is at will, so if you truly feel exploited and victimized by the evil white men who offered you a shot at one of the highest paying and most prestigious jobs you can get out of college, you can break it off anytime. I am sure there are thousands of kids from every walk of life willing to take that offer for 3/4 of what you are being paid. You should realize how fortunate you are to even have such an opportunity, and if you are truly being paid less, bring it up to your employer instead of whining about it on some internet forum.
As a non-target asian dude, I would literally worship the ground the MD walks on and work for free for an opportunity at a MF. Like get on the floor and bow down to him when he walks by, every time without fail. I would stand there next to him while at an important lunch, wiping sauce off of his face. I would drive him home, tuck him in, vacuum the house (quietly), water his plants, and take his kids to/from school. I would clean his cars to make sure they are spotless. Allow him to beat the shit outta me when he is stressed. Let him make fun of me to make him look funny at meetings. Just to have the chance of telling a girl at a bar "yeah, I work at KKR *smirk* "
This isn’t it.
This is why you will never make it. Bet on yourself and make it happen. Worshipping the ground anyone walks on is the best way to become a secretary. Not a revenue driver.
If you are correct, you will be in a much better position to negotiate with All firms after having this experience...
I find it very strange that you’re getting paid a different amount than some of the other analysts. As mentioned in the posts above, this would be an unusual practice for a reputable firm.
Before you take any action, you need as much data as possible. It doesn’t take much for them to justify your getting a lower pay level, so you need to verify:
1 - Are the other SAs performing the same exact function as you are? Meaning, you’re all in the same exact pool of candidates. For example, if they PE firm has an investment group and an operations group, make sure you are comparing yourself with others in the same exact group. I know you said “same firm and group” .. but just want to confirm here.
2 - Are you the same year in your university? Are you a rising Junior and they are rising Seniors? Are they Masters students? Is this your first summer analyst gig and their second? Did they work at the same PE firm the prior summer as well?
3 - Were they offered the same salary initially and then negotiated it up (perhaps with other SA offers)? I recognize this is unlikely.
4 - Did you get the job through the same avenue? Meaning, did they go through on-campus recruiting while you applied as part of a diversity program or something else of that nature?
If you collect all of this data and your situation is identical to your classmates, except the lower pay, you then have a decision to make. If you decide to approach HR, my guess is start gently with something along the lines of: “Hi XYZ, I hope you’re doing well. I wanted to check in ahead of starting this summer. I’ve heard that the company may be paying its summer analysts $(Classmates’ Pay) instead of the $(Your Pay Here). As I plan my expenses for the summer, it would be helpful to know if I will be receiving this new pay rate?” This is a very non-aggressive approach — it let’s them know that you are aware of the pay difference and offers them the opportunity to “correct” the situation while also not admitting they’ve done anything wrong. Alternatively, it gives them a chance to explain the pay difference before you accuse them of underpaying you. Depending on the response, you can plot your next move.
That said, I HIGHLY recommend that you don’t take an aggressive approach and probably don’t raise the issue at all. As others have mentioned above, the amount is relatively small in the grand scheme of your career and you risk losing out on what could be one of the best career launching points possible. Make no mistake, if you accuse them of underpaying you as an URM, they absolutely will not give you a full-time offer at the end of the summer. Anyone who plays the ‘race’ or ‘gender’ card these days immediately gets flagged as a potential legal liability and the company will start developing a plan to distance itself from these people. This may not be fair or just, but it is the reality of how 99% of firms operate. There is a huge push right now to hire URMs and women, but a lot of it is driven by a desire to satisfy LPs/clients/public rather than an actual desire to have more diversity on the team. You stand to benefit from this in the hiring/promotion process, but you still need to play ‘office politics’ and tread lightly.
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