Hi guys. It’s that time of year again. We’ve just got comp paid out and now it’s time to start thinking of the cut that we should pay on to our MDs via the annual tip to thank them for another year of opportunity in this industry!
I know the analyst suggested tip is generally 20% of pre-tax bonus. But what are you guys paying in the VP bracket? I was thinking of lowering the ratio this year to 15% of my gross bonus comp, but want to seek guidance to ensure I’m not off market.
Keen to hear how much y’all are tipping your MDs this yr from a % standpoint.
Honestly it should depend on your living costs. Once you have food, water, shelter and tax paid the rest should go to the MD. You won't succeed in the industry by being stingy.
Wait, you are giving part of your comp to your MD ???
Yep, you wouldn't be where you are now without your MD. It's called showing respect and gratitude.
Bro I pay them back by working for them and generating alpha for them it’s just wrong to give part of your comp to your MD
50 to the MD, 20 to the CEO, 10 for each VP in your group, 5 to each associate. It’s Ok to take a loss in the first 10-20 years.
Dang respect bro - maybe I should just pony up 100% of comp this year. I was considering helping my parents fund my brothers college tuition. But you bring up some good points, I think the CEO of my firm is more deserving given all of the value we generate for the economy and the jobs our business creates.
Thinking about leaving em a 10% tip this year. It’s a down year overall, my job security isn’t great, and I’m not that happy with their service this year. Wanna remind everyone that even if it’s not much, your MDs still get a 400k base salary. The tip is only for doing a really good job.
Got 90k post-tax bonus and thinking of giving 15k each to my two MDs, is this in line with everyone else? Can I get away with no tip to SVP?
I really don’t know if this is a joke. Why would I give money I need to survive in this city to my boss making millions for a decade now. No one at my firm gives the MD shit except a nice bottle of wine around the holidays.
What about the MD's rent/mortgage and car payments? You have to keep in mind that their routine expenses are likely orders of magnitude higher than yours, so they may even be living paycheck to paycheck. As a financially secure individual, it is your duty to help those who are less fortunate than yourself. Especially when your success is only a result of their hard work. This warrants a tip of at least 25% TC. Don't be stingy.
I haven't started as an SA yet, should I tip anyway based on my expected salary? Wanna show I'm a team player
Definitely bro. Even if you only have $50 to your name tell your MD this and offer it to him as part of the tip.
He knows how to leverage that $50 more than you in order to benefit the economy. Classic trickle down economics my guy.
One of our summer analysts last year didn't contribute to the tip pool for the MDs, he did not get an offer.
Wait I don't know if this post was a troll (please please tell me if it is) but I am a current second year analyst and didn't tip anyone during my first year. I signed a check for 5k (my bonus was only 30k) and dropped it off at my MD's desk this morning, he just called me in and asked why I did that and told me that it's not necessary. He looked extremely baffled during our conversation so I'm not sure if I offended him at all. I took back the check but I'm pretty sure he now thinks I'm some idiot. What should I do???
There’s no way this really happened. If it did, I salute you, Doofy.
Does anyone have any insight into what split between your MD and landlord should be?? I usually try to tip approx. 35% of income in addition to rent to landlord, but am worried that tip to MD will make me have to take out some additional leverage to make things work
Every single year, gullible American analysts go into the MD tipping thread and somehow manage to fall for it. Tipping is ingrained into your instincts - stiffen up lads.
I'm tipping three tranches in 40-day instalments @ 10% of base
This guy dollar cost averages his MD's tips. Smart guy, good advice.
In commodities it's customary to arrange for delivery of 1 lot of your underlying at your MD's house.