BB S&T Bonus Progession
There is a lot of differing posts on this topic so I wanted to get an actual sense of bonus progression for analysts and associates in S&T at bulge bracket banks. Can anyone comment on all-in pay for analysts and associates now that salaries are bumped to 100-110k across the board?
We are in the very beginning stages of how S&T pay will be adjusted, its way too early to tell at this point.
Here is what we know
1. There have been a couple of banks that have announced standardized analyst pay across all front office functions. From what I have been able to gather only banking analysts have actually seen this come through to paychecks and S&T has not yet seen it come across. I'm hearing from those that have announced that this should apply sometime in 2022.
What we don't know
1. Will the other banks follow suit and increase S&T analyst pay to the same level as IB. I think they will and will announce it sometime in 2022 after bonuses/promotions are communicated and paid.
2. Will those banks that are now paying less than the "top" banks raise their comp to match those guys across all front office functions, similar to how everybody paid 85K before. I'm thinking this is a coin flip, nobody who is getting offers at the "top" banks is going to the lower tier banks so in theory the guys paying 100K vs 115K are still going to get the same talent as they did when everybody paid the same. On the flip side you don't want to put it out there with clients that you pay worse than the next guy so maybe everybody matches whoever is paying the most.
3. What happens to bonuses once raises come in across the board? Do the banks just lower them so everybody is the same in terms of all in comp adjusted for inflation? Unlike banking which has had a record amount of deal flow/revenue/workload and tons of people quitting, S&T has stayed pretty consistent in terms of pay over the last couple of years even with a 2020 which saw increased revenue. The lifestyle is much more manageable so you don't see people quitting at the same rate as banking. The labor shortage has effected banking much more than S&T so the supply demand dynamics that we are seeing there are not at play here. We won't really know anything in terms of all in comp until early 2023 when the first bonus numbers come out at the higher salary levels.
Here is sort of the ranges in S&T at various levels- I think it goes up at analyst and associate but stays flatter at the higher levels.
Analyst- 135K-155K
Associate- 200-300K
VP- 300-500K
Director- 500K-750K
MD- 1MM+