2023-->2024 Raise/Bonus/Commission #'s
Well??? How did everyone fare?
Location: Southeast
Industry: Brokerage
YOE: 1.5
Base: +3%
Bonus: 5% of base
Commish: 8% of groups net fees
All in: $83ish K
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Swinging through the jungle of finance, I've gathered some bananas of wisdom for you. Based on the most helpful WSO content, here's what I can share:
Location: Southeast - While the context doesn't provide specific details about compensation changes in the Southeast for 2023 to 2024, it's common for regional differences to affect compensation structures in finance.
Industry: Brokerage - The context doesn't mention brokerage specifically, but it's known that brokerage roles can have a variety of compensation structures, often including a base salary plus commission.
YOE: 1.5 - With 1.5 years of experience, it's typical to see modest increases in base salary and bonuses as you're still relatively new to the industry.
Base: +3% - A 3% increase in base salary is fairly conservative and could be in line with inflation adjustments or cost-of-living increases, rather than a substantial raise due to promotion or exceptional performance.
Bonus: 5% of base - A bonus of 5% of your base salary is on the lower end, which might suggest that the role is more heavily reliant on commissions or that the firm has a more conservative bonus structure.
Commish: 8% of group's net fees - Commission rates can vary widely, but 8% of the group's net fees could be considered a decent rate, depending on the overall revenue generated by the group.
All in: $83ish K - An all-in compensation of around $83,000 for someone with 1.5 years of experience in brokerage in the Southeast seems reasonable, though this can vary based on the firm's performance, the market conditions, and individual performance.
Remember, these are just some general insights. For a more tailored swing through the compensation vines, you might want to compare with others in similar roles within your region or reach out on the WSO forums for more specific chatter. Keep climbing that career tree!
Sources: https://www.wallstreetoasis.com/forum/investment-banking/bonus-season-comps?customgpt=1, Q&A: 3rd Year PE Associate ($10bn+ AUM, MBO/LBO, equity, mezz, distressed debt), Predictions for IB business for 22-23, Sales and Trading Bonuses 2023, S&T Bonus/Comp Thread 2023
Following
Location: NYC
Industry: REPE
YOE: 3
Base: +3%
Bonus: 10ish% of base
Commish: N/A
All in: $105K
Yes, i know im underpaid lol
This is borderline criminal. Whenever the job market improves, I hope you move on.
Thoughts on why you’re so underpaid?
That Bonus for 3yoe is pretty low, unless it's payout for this year, which I assume many are experiencing bonus cuts.
That is bizarrely low. Given the way people use the term repe "incorrectly", out of interest are you actually repe or in fact a developer / operating partner.
More of an institutional investor but we coinvest as well.
What’s your hours? And what’s the AUM? How many deals you:team closed?
Sounds low but still in the range given the market transaction volume.
Location: Mid Atlantic
Industry: CRE
YOE: 3 (Masters as well)
Base: TBD, thinking 3-5%
Bonus: Negotiating, should of been 25%, Thinking 10% of Base + 6% Carry
Commish: N/A
All in: $172K
Nice, getting carry. What’s your level? And do juniors get carry as well?
It’s kind of a revenue share/carry. So it vests based on the deals the company worked on. I believe only employees that were there that stayed during the acquisition got it. It can never go lower than the initial base amount also. I guess it’s more like RSUs for a non public company. Then the structure turned normal only Directors and above got carry/profit share.
Update been away at the conferences.
Base: 3.5% raise no promotion and bad year
Bonus: 20% remained at 25% for next year
Carry increased - 10%
New All in 180-184K
Not complaining after missing goals by 30%
Location: NYC
Industry: AM / Acquisitions
YOE: 5
Base: +4.5%
Bonus: ~30% of Base
All in: $250k ish
How are your hours?
Almost never more than 45 / week. I'm in a family office (not my family, unfortunately).
Sound very decent. Good benefits (401k/insurance, etc??) your base is very high though
Fantastic benefits. Health insurance 100% paid for, with secondary (executive) insurance in addition. No 401k match, but given carry in funds and deferred comp option offered.
Location: NYC
Industry: Bank Construction Lender
YOE: 2
Base: +14%
Bonus: 30%
Commission: N/A
All in: $118K
Are you actively lending for NYC projects right now? Modeling out a potential condo development within NYC and estimating some loan terms for 50% LTC +/- $150MM total debt.
Pm me
Damn 50%? What kind of multiple are you going for on that
Promotion? 14% BASE jump is so nice
3.5 YOE working at a large merchant developer (1.5 in CRE)
Just got word I’ll be promoted from senior analyst -> associate (not actual titles, but our equivalent) when bonuses come out in March.
Currently 103k base and expecting 30-40% bonus (but might end up higher). Comp jump at next title is meaningful, so my expectation is about 125k base and ~190-200k all-in for 2024. Average about 45 hours / wk
Market?
What market?
TX
Location: Mountain West
Industry: Development
YOE: .5
Base: +13%
Bonus: 42% of base
All in: $120K
Feel very grateful for this role right out of college. My seniors are exceptional. I really enjoy my coworkers.
.
PGIM?
.
Industry: Family Office
YOE: 9
Base + Bonus (2022, 2023, 2024): $350K, $375K, $450K (est.)
Carry: 5-10% of carried interest pool (back-of-envelope $2-4mm over ten years. Only accounting for current pipeline).
Goal (2024): Increase pipeline and deal flow I originate to increase amount of carry.
Good for you. How did you end up at the family office?
Honestly, it seems luck had more to do with it than anything. The job listing wasn't heavily posted and I was competing against candidates more senior to me (and therefore more costly). I joined when fairly junior for what I imagine was a decent value from the firm's standpoint and have grown in comp over the past handful of years. Although there are some things the role lacks, overall its a great gig.
Wow wow wow! Jealous
Wow, this is direct contradiction to family offices paying sh*t
All I've ever heard is the opposite - that family offices pay up there with large funds but better work/life balance. Just hard to find the spots.
Location: East Coast
Industry: repe ($15ish B AUM) acquisitions
YOE: 2
Base: +6%
Bonus: 12% of base
Carry: n/a
All in: $80ish k
Location: NYC
Industry: Brokerage (Institutional)
YOE: 2.5
Base: +5%
Bonus: 70% of base
Commish: N/A
All in: $165k
Hours - 60-80
Don't believe im being fairly compensated for hours/stress/responsibility but would appreciate anyone's thoughts. On a top team btw
Maybe not being fairly compensated, but if you're not bringing in the business why would you get a substantial cut? I know people 5-6 years in not on a top 2-3 team but up there making $300k all in. Again they've said if you want to make more move to the brokerage side from working as an Associate/Senior Associate.
Seems on a top team it's built in business so see if you could move to the execution side? I think it also has to do with the market, where this year was slow for sales so maybe that's why your bonus was low?
2.5 years, yeah it is real estate. You are doing fine. Believe 1 more year and you will get a bump to associate. When you say institution, JLL, Newmark, C&W or Eastdil. If you work anywhere else, pay would not be as good.
Yeah already got the bump to associate this summer. You're correct, I'm working at one of those firms on an institutional team (likely one of top 4 teams in the city). Tough to see my comp so low when I have peers on the acqu side making as much if not significantly more for way less work (and less insane senior staff), but appreciate the insight.
Hmm, base/bonus seems strong but would like deal tips over a flat bonus
Location: NYC
Industry: REPE
YOE: 0 (out of college)
Base: 100k
Bonus: 75%
All in: $175k
Firm(s), hours, school(s), role?
Large institutional, 60-80 hours a week, west coast target, deal team
Just got bumped to VP so figured I'd share.
Location: Mountain West
Industry: REPE; primarily direct dev/acq deals on my side of the business, not writing LP checks (though we do have allocator funds that do LP equity/pref). $5-10Bn total equity committed over last 10 years. Latest two funds are both $1Bn+.
YOE: 11
Base: $200k
Cash Bonus: 25% + cut of any acquisition fees + discretionary bonus based on dealflow (highest year was additional 40% of base)
All-In Cash Comp: $250k - 350k, depending on production
Carry: still awaiting final fund carry docs and updated deal-level carry splits, but based on where others at this level have been, fund+deal carry should be in the ~$100k - $300k/year range ($1M - low $2M's over 7-10 years). Got awarded 2% deal-level carry as an associate (would've been worth ~$500-600k on initial UW), but that market tanked and I don't expect to see a dollar of it.
Hours: 40-55 typically, at the very worst 65-70 (though that was during associate years on a very lean team with a lot of dealflow).
I'm sure the Tier 1 city or megafund people will think I'm vastly underpaid in cash, but I love the team, lifestyle in this city, investment thesis, and the asshole factor is incredibly low. Dream role for me.
Solid on the carry, but you're definitely underpaid on cash comp for a fund that big regardless of where you're located. Those size funds are paying associates that level of cash comp these days and I'm not talking just about CA or NY, although naturally that's where most of the funds are located. Maybe there's a mismatch in title vs. YOE though - I'd say that cash comp is fine for a 1st year VP, but I'd also say a first year VP is typically closer to 7 YOE vs. your 11. Were all 11 of your years in institutional acquisition roles?
350k for Denver? and 40-45 hours. That is not underpaid.
Would you mind explaining how you got the 1.5% of carry? Was that just given to you and then they increased it over time, or did you negotiate hard to get that amount? Did it scale up from a lower percentage when you were more junior? Lastly, what’s math behind the $5m of value?
Position: Director
Market: West Coast
Years of experience: 11
Latest fund size: $1.75B
AUM: $5B
Base: +25%
Cash Comp: $500k
Promote: 1.5% - Valued around $5m. Probably get paid out over next 5- 7 years. Expectation to grow as we add more funds.
Location: Southeast
Industry: Asset Management (REIT)
YOE: 1 (Masters degree as well)
Base: +0%
Bonus: 4% of base
All in: $~60k
Actively searching for new roles. My pay is downright insulting.
Location: HCOL west coast
Type: REIT
Position: Director
YOE: 8
Base: 140
Bonus: 25%
All-in: 175
Increase: 8% on a promotion
For clarity, the title you have is Analyst > Associate > Manager > Director? Do you feel like you're getting hosed on comp? What asset class are you in?
First question- yes basically.
Second- hard to say but would be curious how my value add would stack against people who outearn at a similar level. The one thing to bear in mind is this is a REIT and REITs have a rep for lower compensation in general. That said, lately I’ve been thinking much more frequently about the hours and COL weighing more heavily on the scale than TC
Location: HCOL East Coast
Type: Closed End Fund
Position: Associate --> VP
YOE: 6.5
Base: 150 --> 200
Bonus: 80
All-In: 230
Carry: ~$1 MM Paying in 7-10 yrs, should scale to $2 MM.
Need cash to scale up significantly in first full year as VP and have signaled as such.
What’s AUM?
Location: West Coast HCOL
Industry: Institutional Dev (Hines, Related, etc.)
YOE: 2
Base: 100 -> 105
Bonus: 45%
Hours: 45-55 occ. 60
Feels like I’m comped pretty fair but curious to hear more analyst positions.
I just posted my numbers, but the development firm I am at would be a tier below Hines and Related.
Hines probably would be a similar base, but Hines bonuses for associates and analysts are only 30%
Location: Southeast
Industry: REPE
YOE: 3
Base: Bumped +8% to $130k
Bonus: 50% of base
All in: $180k
I didn't. Worked at a GP before moving over to current seat.
You’re going into your 3 or 4 YOE?
Going into 3rd or 4th year?
going into 4th.
No. Brokerage - > Developer -> REPE
Location: Southeast
Industry: Retail Construction
Position: GC PM
YoE: 2
Base: 75k -> 82k
Bonus: 10% -> 25%
‘23 Total E’24 Comp: 85k -> 106k
Hours: 45-75, averaging 55
Associate in REPE
Last year: $275k cash comp
this year: same
Opportunistic debt and equity investing. Kind of set up like a mega fund where the company is known for their corporate investments but still has substantial RE funds. Did IB before but most people came from other RE investing roles.
Location: Southeast
Industry: REPE
YOE: 4
Base: +15%
Bonus: 25% of base
Commish: n/a
All in: 150K
You’re going into your 4th year expecting this comp? Or going into 5th year?
I've got 4 behind me now.
Location: Texas
Industry: Lending
YOE: ~2
Base: +3%
Bonus: ~10%
All in: ~$125K
Location: Northeast HCOL
Industry: REPE
YOE: ~6
Base: Flat
Bonus: ~50% of base
All in: ~$220K
Location: NYC
Position: Underwriting
YOE: 3
Base: +3%
Bonus: 25%
Commission: N/A
All in: $110K
Location: West Coast
Industry: Acquisitions Analyst @ Developer
YOE: 3.5 (2 with firm)
Base: 110k -> 130k
Bonus: 45% of 2023 base
Commish: None
2023 All in: $160K
was previous experience within RE? are you expecting analyst-->associate bump soon?
Was promoted to Senior Analyst with the expectation to get Associate next year, and yes 1.5 years at a REIT.
Location: Midwest
Industry: CRE Banking balance sheet
YOE: 3
Base: +10%
Bonus: 10%
All in : 100k
Location: NYC Industry: Lending, in a rotational program YOE: 0.5 Base: $90k ($75k base + $5k sign on + $10k relocation bonus) Annual Bonus: $4.5k Total comp: $94.5k
Not sure how I feel about this
Is the 4.5k your pro-rated stub bonus? That seems brutally low. How are your hours? Are you at a bank/lifeco/debt fund?
I’m at a large regional bank. My hours are generally not terrible for a 1st year, about 50-55 with rarely any weekend work. The bonus isn’t pro-rated, but this year’s is especially low. They try to justify the low bonus by saying I have the flexibility to try different groups as part of the rotational program. I feel Iike I’m treated like an intern in terms of comp lol. For comparison, a full-time first year who isn’t part of the rotational program makes $95-100k base with 25-45% bonus. The gap in comp is terrible. However, Others that have completed the program say they were compensated well once they “placed” in a permanent group.
How is the GSE/Agency environment now?
I’m at a DUS lender shop. I’m gonna prep my resume and start applying including to Fannie/Freddie. Shame that a DUS lender pay less than GSE.
YOE: 5
Base: 89K - 5% bump
Bonus: only 15% this year, target is supposed to be 25%
Total: 98K
Geo: DMV
Bank DUS shop or non bank DUS shop? I think you might be paid higher at a bank.
Dang I'm at a GSE and it's not much better.
Got wacked on bonuses including like admins. I feel the large leap frog from DUS and GSE to Agency will begin.
To be fair Agency volume was down +25-35% in originations. Seeing many places cut bonuses even more to retain employees or they just are laying people off. Unless there is other avenues of revenue the smaller lenders are going to get smacked. I see high turnover, but the issue is there isn't a lot of places to go. The Agencies are hiring but are very selective right now, but should open up before the other side does.
I've thought of hopping to a agency.
I'm assuming you're on the underwriting side, or are you on the production side?
YOE: MBA + 6 years
Location: HCOL (Non-NYC/SF)
Industry: Development for Multifamily REIT
Base: $195k -> $220k (promotion)
Bonus: $150k (target was $95k)
Target Comp for 2024: $350k (~20% increase in total compensation on promotion)
Hours: 40-45 most weeks
I wish I got more cash comp on the promotion, but hard to complain when my bonus outperformed by so much.
Congrats. Are you all hiring?
Location: NYC
Industry: REIT
YOE: 3.5
Base: $85k to $100k (promoted)
Bonus: $20k
All in: $105k
REIT enterprise value? Or at least a ballpark range of billions?
Location: HCOL West Coast
Industry: CRE - Asset Management
YOE: 9
Base: $160k
Hours: 30-35 hours/week
Bonus(es): Company contributes ~$5,000/year to my 401k and $40,000/yr to my pension and pays for monthly health insurance.
All In: $205k? ($160k base + $45k/year in retirement contributions...however you want to value that...)
YOE: 8
Field: Strategy/Research at REPE
Title: was “Director” now “Senior Director”
Base: +13%, new base is $230k
Bonus: 40% of base
New Target Bonus: 60% of base.
YOE: 9
Industry: REPE, AM-focused (ignore title)
Title: Sr ASO / Jr VP
Base: 270k
Cash Bonus: 60% (160k)
Stock award: 100k
Carry: 250k future payout - not banking on it, likely won't materialize
Location: Chicago Industry: Balance Sheet Lender YOE: 4 in RE Title: Jr. Analyst > Analyst Base: Promoted + then Ad-Hoc + Merit in 1 year = ~$106k Bonus: ended ~75% actual. $80k All in = $186k Hours: Flat mf 40.
Wow very strong bonus for balance sheet lending
My man, what bank. Or what kind of bank BB, Regional, Canadian, Global Bank?
Tough year on bonuses for my firm. Comp was flat or down for everyone.
Acquisitions and Development
8 YOE, NYC
VP
10% raise to $188,000
$60,000 bonus
Location: LCOL for California
Industry: MF Developer
Role: Capital Markets / Portfolio Management
YOE: 11
Base: 0%
Bonus: 30%
All In Cash Comp: $240k
Promote: 1% of new deals (negotiating for 4-5%), expect maybe $50k next year, nothing thereafter unless the 10yr drops 200 bps.
Hours: 45-55
Location: HCOL (not NY)
Industry: Development
YOE: 5.5 (no MBA)
Base: $135k —> $155k
Bonus: 30% (25% target) —> undefined, probably 35-50%
All in: $175k —> $200k-235k
Location: Canada
Industry: REPE
YOE: 3+ in RE, 2+ in Finance
Base: 89k -> 94k
Bonus: 25%
Hours: averaging 50
Significantly down leveled and underpaid.
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