UBS 1st year S&T bonus -- $25k!

I'm assuming this is for associates?

How much did you make for your desk?

I'm not sure I believe that...assuming it's associate stub. I work at a competitor that lost more than UBS and our associate stubs were not nearly that low...seems like if UBS truly paid $25K they'd have everybody leaving and it'd be on dealbreaker, etc...

I don't buy the $25k figure either.

traderboy - what is your source?

$25k sounds too low. I just checked and associate stub at UBS IBD was $45k (citing a primary source). Granted, S&T doesn't have to pay the same as IBD but 45 vs. 25 would be dangerous, to say the least.

if you think that's bad......think again. Bonuses at BofA research were MUCH worse than that, assuming you actually had a job there come bonus time (they did cut like 30% of their research headcount). we're talking bonuses that were down like 60-90% Y/Y, supposedly.

Source is very reliable. The bonus figure is one data point: for a first year (full year following stub year), non-MBA, cash trading analyst.

At UBS, there are no "associates" for S&T. There are 1st years, 2nd years, etc. You can then get "officer" rank. So you go from Non-Officer, to Associate Director, Director, etc, etc. An MBA joining the S&T program joins as a non-officer, but "associate" in the title. I can only imagine that that you get a bump up in pay if you have an MBA, but you dont get recognizable company rank.

Analysts don't have a stub year...

"I'm not sure I believe that...assuming it's associate stub. I work at a competitor that lost more than UBS and our associate stubs were not nearly that low...seems like if UBS truly paid $25K they'd have everybody leaving and it'd be on dealbreaker, etc..."

2 things

1) some firms pay analysts a stub and get them on the feb cycle 2) I know of some associate stubs that were far less than 25k.

I think you could easily see analyst bonuses in the 25k area this summer.

Jimbo, what makes you think that? At my firm, one that has been hit heavily by subprime, bonuses just given out were almost as high as last year (record year) for everyone except MDs, and this is after the extent of our subprime losses has been realized by upper management. Sure, additional writedowns will come, but management is aware of it, moreso even than the finanical press or junior guys. Are you just really bearish on the economy and think it will get much worse than expected now? Or are you talking about smaller firms that might not be able to withstand a recession as well as the larger banks?

My expectation was 40-60k, which was based on my 20k first year number and the variety of surveys and forum responses I've read over the past year. Our desk, and Equities as a whole, had a record year. Were my expectations unreasonable?

I could've earned about the same by working fewer hours and a much better lifestyle at a more "traditional" job. The risk-reward ratio now doesn't seem favorable at all. Who the hell wants to work this hard for 25k at the end of the year?

The economy now feels like 02-03 to me...bonuses then for 1st yr anaalysts were 15-30k....I don't see why we wouldnt be able to go back to that.

"I could've earned about the same by working fewer hours and a much better lifestyle at a more "traditional" job. The risk-reward ratio now doesn't seem favorable at all. Who the hell wants to work this hard for 25k at the end of the year?"

In your interview, didnt you say you wanted the job for the challenge, the camaraderie etc not the money?

well there you go,

haha owned. Jimbo, has anyone you interviewed ever straight up said they wanted to be a trader for the green?

"The risk-reward ratio now doesn't seem favorable at all. Who the hell wants to work this hard for 25k at the end of the year?"

You're in S&T, not IBD; be happy you have decent hours. Also, you should be in this for the experience, not the entry-level pay. Or, some might say, you should be in this for the mid- or senior-level pay.

I remember a Morgan Stanley trader who visited our school telling me that after being in the business for 15 years, only 4 of his original class of 29 traders are still trading.

"What were associate bonuses during 02-03? I thought they were absurdly low, too - the fact that associate bonuses have not dropped much if at all versus last year suggests to me that the baseline has been raised substantially."

They were 80-100k. I definitely know of associates getting back towards the 100-150k range.