Let's Complain About Our 2024 Bonuses - A Thread
It's that time of the year again.
How shafted were you this year? Can't imagine there will be many happy stories in this thread, but sometimes that's what makes a thread great.
Trending Content
| +51 | Leave brokerage to be GP | 12 | 5h | |
| +46 | New Comp Database - Google Form (Now with Data Validation) | 24 | 4h | |
| +24 | Seeking Career Guidance in Real Estate Development Post-Graduation | 3 | 1d | |
| +23 | Going out on your own | 4 | 7h | |
| +22 | REPE/Development GPA | 15 | 2d | |
| +21 | Real Estate = complicated + underpaid | 15 | 8h | |
| +17 | Fisher Brothers | 6 | 7h | |
| +17 | MSRE/MSRED with no RE experience; Naive to think I’ll land a job afterwards? | 4 | 4d | |
| +16 | UC Berkeley MRED vs Columbia MSRED? | 2 | 6d | |
| +15 | Spreads over SOFR/UST | 1 | 6h |
Career Resources
I'm more upset we don't find out till our books are closed which is 2024Q1 mid...So we know it's bad but how bad haha
Full bonus this year at VP level. We still did a few deals, though about 1/2 as many as a typical year and took on more asset management duties to fill the gap.
You all should remember how you're treated by these groups in times like these. Most of your bosses probably made big money the past 5 - 10 years and many of them could easily pay you bonuses (especially your measly analyst/associate bonuses) if they wanted to but are using the market as an opportunity not to. Maybe exceptions if you're working for an office group or multi syndicator that's getting crushed, in which case I'd leave anyways.
This is good perspective as I told myself I was being selfish for thinking along these lines.
Are you getting outsized bonuses and pay outs in the good years? If yes, then you might feel selfish complaining now. If you aren't, then you shouldn't feel bad. You shouldn't be penalized for the bad times if you aren't rewarded to the same extent when times are great. I know some analysts/associates working for brokerage teams that got paid huge bonuses in 2021-22. If I was those guys, I wouldn't be complaining if I got a crappy bonus this year if my team's production was way down. But if my typical bonus is 30% and 2021-22 were record years and I only got an extra 10% reward, then I'd be pissed if my bonus was cut this year. If my typical bonus is 30% but my team crushed it, made a ton of money, and i worked hard to help them and they gave me a 100% bonus as a reward, then I'd shut my mouth this year.
Super lame I expected more we'll see how 2024 goes before
I'm ready for 2024. Loads of deals in the pipeline. Let's go guys n gals
So pathetic - I considered asking CEO if he needed it more than me.
That would be really funny. Maybe offer to bring some meals by his house
Film it if you do. There's a 99.9999% chance that goes poorly for you, but you never know...
At least you all were not laid off.
Didn’t get a bonus last year due to timing of layoffs and starting my new job, so anything above zero would be a win for me. We get ours communicated in Feb or March though.
I don't find out until next week but happy to report back. I am expecting a decent outcome, not as large as the past couple of years but not worried about getting stiffed.
You aren't owed a bonus - if your firm does poorly, how are you being "shafted" by not getting paid? If you want more certainty around your comp, negotiate for it. If you get a big bonus in years where the firm does well, you don't really have a leg to stand on when the reverse happens.
This idea that a "bonus" is something that is owed every year, in ever increasing amounts, is an insidious one.
I think the thought is that many firms try to treat bonuses as almost a flat piece of your comp. My firm does that, and by that I mean I could have a stand out year, the company could crush it, and I probably wouldn't beat my normal bonuses by more than 10 - 20%. They'd say that's what we get promote for. I think more firms are probably like that than many realize, so to me it's BS to work at those firms and get shafted on your bonus on slow years since you aren't really reaping the benefits on stand out years.
I totally agree in the circumstances where someone works at a firm and gets outsized bonuses on good years. But I think many firms basically elect to put a significant portion of your comp as a bonus over a salary so that they have leeway to (1) fire you before bonuses are paid in bad years and get that overhead off their books, or (2) have an out in bad years, again to get your comp off their books. These firms will say the bonus is to motivate good work and team performance, but at the end of the day they aren't really increasing it much on really good years.
Edit: Forgot the (3) which is another big one. They put a large portion of your comp as a bonus to deter you from leaving the company. They make it so that you basically have a 1 - 3 month window to leave the company every year without giving up a big part of your bonus. Our firm had someone leave 2 weeks before annual bonuses were to be paid even though we were already told how much they'd be beforehand, and they didn't pay that person's bonus.
So really a lot of these companies aren't your friends and essentially use a bonus to benefit themselves but convince you it's to motivate performance, etc. And for that, it's BS when they use a slow year as a reason to completely chop your bonus.
My previous employer I left I was Junior Junior, I left 10 days before bonus paid out. My current company wanted me and made it worth my while in a sign on aka my bonus + 5% more. this was a 15% bonus I was expecting plus 1000 more from just Length of Service bonus.
Now the job market isn't what it was so sign on bonuses are not as lucrative. But know MD and above that still got significant ones paying out deferred comp they forgo with leaving.
All very good points, maybe excepting #3. Of course large compensation packages are meant to retain talent. And of course someone's bonus isn't going to get paid if they up and leave - that's why you negotiate with your new employer to cover whatever bonus you are foregoing. I don't have a ton of sympathy for someone who gives 2 weeks notice, leaves, and expects to be given their discretionary compensation. It takes months to get new staff up to speed on real estate projects, so you really do leave your employer in the lurch, not sure why they should reward you for that. And if you are willing to stay to help with a transition... why wouldn't you stay through bonus season?
If you are putting in the effort and doing your job well, a bonus is certainly deserved if the company can afford it. It's part of the compensation package and typically used as a carrot to keep employees putting in 100% efforts.
Why? This reasoning makes no sense with even the slightest bit of critical analysis - the logical conclusion is that labor should own the means of production as well as it's profits.
If you are willing to see a pay reduction when your company isn't doing so hot, then your argument makes sense. But if it is always one sided, that you get more when times are good without the corollary when times are bad, then you have no real thesis at all.
I got shafted - this has been the most significant business disappointment I've faced to date. My MD made $1.3MM this year (I know because I am the one calculating the deal-level bonuses), we distributed record multiples on our finished projects (2.9x net equity multiple with a 24 month average investment period, do the IRR math), and put another ~25 development sites with good prospects under contract. Bonus was a hand written thank you note from our equity partners and a $100 gift card to a local steak house that happens to be one of our tenants. I know I went above and beyond the goals we made and will see what happens after my annual review, but man if this isn't a reason to start looking, I don't know what is.
What bonus were you expecting?
Man this is brutal - especially with actually doing deals this year.
That's a slap in the face
How did you react to this? I would have a really hard time keeping my cool in this spot.
I am waiting until my review next week and approaching it with a calm demeanor and a mountain of evidence that this isn't suave. Think mgmt culture (everyone is 55+ y/o) has a tacit understanding that I'm too young to be expecting (25 y/o), should just be grateful to have a seat at the table and get to learn, when in reality, a bonus compensation plan is part of my package, and I've earned it. We'll see what happens. Thanks guys.
Hah, of course that is a reason to start looking. I gave better bonuses to my property management staff this year and I definitely didn't take home $1.3MM.
I'd probably return the gift card too, or leave it out in the breakroom, but I can be a bit of a dick. Your mileage may vary on that one.
Was thinking the same thing. That gift card would be laying on my empty desk
Expecting and rumors are we are all getting cut, expecting half if not knocked down to 10%, which would be a third. I mean the production side is going to be worse as our business was half of last year and missed forecasts significantly. I'm waiting till my review, but we are negotiating on my bonus and raise to be a bit more than normal. Last year got bumped 5-10% range on my bonus and a 22% pay raise. Expecting a 5-8% pay raise and a ability to recoup some loss in bonus. aka increasing 15% from my previous bonus structure
Expecting it to be a little over target.
Got full bonus. In REPE though and we have capital/did a handful of deals last year.
WhT does full bonus mean? What percentage of base and/or $ amount?
WhT does full bonus mean? What percentage of base and/or $ amount?
Got the full thing, which was nice. Unfortunately I was also laid off.
That’s nice of them but also sucks…sorry man.
Yeah it was a real kick in the pants, the job market is tough right now, but it might be what I needed to start doing my own deals.
Everyone hit target bonuses and no lay offs. Which on the one hand is great, the market is shit. But on the other hand the AM team is working twice as many hours and getting the same bonus as the acquisitions guys who are sitting on their hands. Maybe worth it to keep the peace and morale up but I'm a bit peeved about it
What should be target bonus by level?
I got some bonus. Deserved all of it. But "there's not enough $ in the company to pay full bonus" because the person who profits most off my work pulled to much out of the company herself.
I was laid off in October and informed I would get my full salary until the end of the year and I should expect my full bonus. I didn't sign anything confirming the situation but was allowed to keep my laptop (not sure why).
When I called year end to speak to HR she informed me I was receiving no bonus and that the head of the region went to bat for me because initially they wanted to sever me and only offer 1 week of pay. She mentioned that my full salary until year end would equate to my full bonus and she mentioned that is likely "what he meant" and he explained it poorly. She also didn't know anything about my situation and wondered why there was nothing that was filled out, she confirmed however that I was eligible for rehire, whatever that means. Definitely a mixed feeling here because this is not a small shop, one of the largest groups for resi out there actually. Feeling slighted mainly..
Voluptas pariatur quidem labore culpa. Nisi minus quos enim eos ratione. Aut dolores explicabo culpa expedita voluptatem et quasi suscipit.
A mollitia quae laboriosam consequuntur magni eaque neque. Ut vel ut reprehenderit cum. Qui similique reiciendis laboriosam repudiandae. Sed quo eveniet dolorem. Adipisci velit quisquam minima vel molestiae vitae reprehenderit. Quo minus aut vel voluptatem eum sapiente nesciunt.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Harum libero nemo repellat veniam et. Non iusto molestiae sed repellat. Sed qui quod nulla necessitatibus numquam est excepturi quidem. Ut unde qui quae omnis dolor totam accusamus. Molestias labore explicabo nesciunt perferendis sunt quaerat. Dolorem quia quidem et. Debitis voluptate aut et.
Natus molestias sint officiis suscipit facilis dolor vel molestias. Ut occaecati aliquid recusandae autem incidunt. Reprehenderit facere modi nam possimus quia qui molestiae.
Non voluptas ut ab suscipit sapiente ad. Voluptate quae aut sed non. Et et dolores vel iusto minus. Qui et autem vero rerum in. Amet dignissimos labore a aut quisquam quod illo.
Similique labore quibusdam voluptatibus et. Soluta aliquam pariatur alias id est quis. Ea sit similique quas eaque.