% of book vs discretionary bonus situation?
Work at a trade shop. I'd describe it as a 'pod' but it's definitely a few tiers below the household name places. The overall payout to the pod is a %, and then it gets distributed from there.
I worked as a blender/sr scheduler type of person, and got a discretionary bonus last year. I thought it was good but not great. I didn't push back on it, because I didn't see a benefit in doing this.
I've started moving into a PnL generating role. I was basically told that I'd get an 'eat what you kill' model with a stated %. Shame on me - I didn't get more formalized writing around this.
Since then, I've brought in a fair amount of my own PnL, and have contributed a lot in other ways too. The snag is that my pod's overall profits are down this year, so I have concerns over what they'll have to pay me out.
The recent discussion I'm getting is describing it as more of a 'discretionary' bonus, rather than a % payout.
Where I'm really angry is I'm quite sure more senior staff are getting fixed payouts.
So...based on this, how should I feel?
Is it a case of "They are fucking ripping me off?" Or is it just a matter of "take your lumps as a junior person?"
Based on the most helpful WSO content, here's what you need to know:
Key Points to Consider:
Discretionary Bonus vs. % of Book:
Current Situation:
Concerns:
How to Feel and What to Do:
Evaluate the Situation:
Action Steps:
Conclusion:
Ultimately, clear communication and formal agreements are key to ensuring fair compensation.
Sources: Is it just me or are PE Associates garbage these days?, What I hate about Banking, Is it just me or are PE Associates garbage these days?, Arguing for bigger bonus?, 2 successful years at the firm, 2 years of 0 bonus and minimal pay rise
Cooked
Finance is the only industry where you make mid/high 6/low 7 figures and feel like someone is fucking you over. Even juniors right out of college who make multiples of their parents bitch about making 3/4 hundred grand. I’ve even heard unicorn stories of entitled MIT college grads wanting 7 figure guarantees before they’ve made a dime in profit too. Really fucked up.
This is your first year in a risk taking role, they would still give you something even if you made nothing, and you probably made money only from a more senior person mentoring you. Be grateful, and as long as your comp is going up each year then no reason to be bitter. Besides, no other firm is going to give you a % pnl payout with such a short track record.
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