Just out of curiosity, does anyone have any information regarding trading bonuses as they relate to PnL? For example, JPM and GS traditionally pay about 5% of PnL in bonus compensation, while BAML pays 3% (hypothetical, totally untrue, just to illustrate my question).
Essentially, which banks are known for paying their traders a greater portion of PnL relative to other BB's?
You are not paid a proportion of Pnl. You are paid as much as your boss likes you, or if he doesn't like you, as much as he thinks that he needs to pay you for you to stay even if you are pissed off (assuming you are much more valuable than your salary, otherwise he'll just sack you if he doens't like you)
yep ^^
Agree with second poster. Just to add though, fixed % of your PnL is still possible but at senior levels and those numbers are down since the crisis. People now also think in terms of stock value since shares were paid out as part of bonus.
I know for obvious reasons that GS and JPM aint that great 'always' for bonuses for junior levels (talking 2010-2012). A trader friend who worked at one of the two you mentioned made it clear just because these are top brands people are assuming they get paid heavy bonuses but that's not the case.
A particular US bank I have friends at confirmed for year 2-3 analysts and above banks don't really consider prop P&L to determine bonuses.
When on the buy-side my manager interviewed analysts as he was looking to expand team size. Surprisingly guys from EM banks were significantly overpaid than UBS and ML. I'm not sure how much to believe this but yeah, there are numbers out there that will blow your mind.
Yeah a lot of people seem to be missing this. You don't go to JPM/GS/MS S&T because you're going to get paid more. You go there because they're great shops and will probably open more doors later on if for no other reason than you get the brand name.
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