2010 Investment Banking Associate Bonuses at BB

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Folks,

Its about that time of year to start discussing Associate bonuses! Keeping this thread to IBD associate bonuses at bulge bracket firms.

From what I am hearing top end bonus (not total comp) at Morgan Stanley and JPM in coverage groups are below.

Class of 2008: $225K
Class of 2007: $300K
Class of 2006: $375K

Could someone confirm/deny if this is accurate?

Comments (74)

 
Jan 16, 2010 - 12:10pm

ixjunitxi:
I think those numbers are a bit high for a first year Associate and I believe 2007 had a higher payout than 2006.

I believe OP means 1st, 2nd, and 3rd year bonuses, all for year 2009.

- Child Please.
 
Jan 16, 2010 - 6:25pm

If these are top end bonus then they maybe correct. I am hearing median all-in class of 2008 numbers of 280 and class of 2007 median of 330. Wouldnt be surprised is top end is 50-60K above median....
so a bit below 2006/2007 comp levels but the real issue this yr is deferred comps which i have heard will be a much bigger portion of comps

 
Jan 17, 2010 - 12:38pm

given the recent announcements by BAC and JPM, i highly doubt that this year we will see numbers close to 2007. if we do, it will be because of the unvested stock component which you can pretty much ignore unless you plan on spending your entire working career at the bank. funny money...

 
Jan 17, 2010 - 1:58pm

the stock grant every year has a 3 year vesting so in 3 years you will be vested on the stock received this year but you will not be vested on the stock received from now till then. in other words you will always be unvested on a very large portion of your income - especially considering the increase in income from associate to vp to director.

 
Jan 17, 2010 - 8:04pm

25% lower sounds probably about right for all-in for the median bucket. i think we will see a top bucket that is pretty high but with very few people in it and a lot of dispersion with some people getting really hosed. also this year will be see a big difference across firms - a lot of the middle markets and boutiques did not have that good of a year and will def not keep up pace on the top buckets with the bulge brackets. the median bucket might be similar.
this stock shit blows really bad...

 
Jan 19, 2010 - 8:24am

if you are laid off it vests immediately, if you are fired for a cause you lose it, if you quit before it vests you lose it. also you pay taxes as it vests, even though you may be restricted from selling it which is always fun...

 
Jan 19, 2010 - 2:15pm

Hearing same thing for MS, ranges follow (supposedly from insider). Also heard Centerview got numbers that were inline with below. Most JPM gets numbers this week.

Class of 2008 - 190, 255, 280, 305

Class of 2007 - 230, 315, 340, 370

Class of 2006 - 300, 405, 430, 475

 
Jan 19, 2010 - 2:18pm

HP12C:
Hearing same thing for MS, ranges follow (supposedly from insider). Also heard Centerview got numbers that were inline with below. Most JPM gets numbers this week.

Class of 2008 - 190, 255, 280, 305

Class of 2007 - 230, 315, 340, 370

Class of 2006 - 300, 405, 430, 475

is this all-in comp or just the bonus?

 
Feb 11, 2010 - 3:05pm

HP12C:
Hearing same thing for MS, ranges follow (supposedly from insider). Also heard Centerview got numbers that were inline with below. Most JPM gets numbers this week.

Class of 2008 - 190, 255, 280, 305

Class of 2007 - 230, 315, 340, 370

Class of 2006 - 300, 405, 430, 475

are these all-in comp or just bonus? seem really high if it's just bonus

 
Jan 19, 2010 - 8:46pm

Are people at JPM pretty happy with those numbers? Seem pretty solid, though who knows what the 2nd highest rating bucket got relative to these numbers.

Why would they defer just $34K. I mean, I don't think many people are going to stick around slaving away just to earn their incremental $34K pre-taxes if they just got $136K cash and have a healthy base salary.

 
Jan 19, 2010 - 9:31pm

Ppl seem pretty pissed in my group. Our numbers were nothing close to MS's numbers. I'm a 2nd year associate and got a salary bump to $160K but bonus was $160k of which $32k was deferred. The deferred amount is the amt given in stock, think it's an appearance thing. I agree pretty small number, worse they gave analyst stock too which totally doesn't make sense.

 
Jan 19, 2010 - 9:13pm

jpmassociate, if you aren't at JPM, do you mind saying where you are (or at least comparable banks)? $160K does seem a bit light for a 2nd year, but that $160K base is pretty healthy, though I'm sure it doesn't soften the sting of below expectations numbers. I'd be pissed if they tried to rationalize a low bonus number by inflating the base salary.

Giving Analysts stock makes no sense they probably won't survive long enough to see the vesting period expire. On a related note, if you are in a group where Analysts received bonuses as well, is it fair to assume you are in a product group such as DCM/ECM or Global Rates?

Maybe the JPM #s mentioned above were for M&A or some coverage group.

 
Jan 19, 2010 - 9:23pm

I'm at JPM and in Global Rates. The base salary increase gets factored into next year's comp so can't quite rationalize. They did say it was because of the UK taxes but wouldn't say how much. Hoping for more data points to see how I fall in the range. EIther way definitely not being paid what they paid in year's past for a second yr associate, not even compared to last year!

 
Jan 20, 2010 - 10:13pm

Can't confirm, but over at Dealbreaker, Morgan Stanley folks seem to be pretty pissed based on the comments they've posted. Tough to tell how authentic the commentators are over there though.

It's really hard to imagine that they could pay 50% of the bonus that JPM paid. Can't remember a time with that much disparity between investment banks in the same general tier.

 
Feb 6, 2010 - 3:34am

1styearBanker:
Go to your own shitty MM thread. This is for BB's only.

1styearbanker, you are a fucking total douchebag and this is coming from someone that knows you and is from the top tier bank of them all; and I can just tell you that you have no credibility on this site and you should just get lost

Better watch your ass
 
Feb 10, 2010 - 11:05pm

1styearBanker:
Go to your own shitty MM thread. This is for BB's only.

Can we seriously ban this guy?

-------------------------------------------------- "Whenever I'm about to do something, I think, 'Would an idiot do that?' And if they would, I do NOT do that thing." -Dwight Schrute, "The Office"-
 
Feb 10, 2010 - 5:58pm

You're only pushing your own buttons loser, I'm having quite a good time slamming you punk.

Better watch your ass
 
Feb 11, 2010 - 2:14pm

I have a few of these bastards names. May be able to PM you on this, but I may publish in a post. I'm working on getting a few more. Could be legal action too, from a few PMs I got.

Better watch your ass
 
Feb 11, 2010 - 2:57pm

I may not be able to due to legal ramifications. But it will all come out.

Better watch your ass
 
Feb 14, 2010 - 3:19pm

Does anyone know about the bonuses at BAML and WF specifically? I am interested especially after reading this article.

"Bank of America this year changed the way it awards bonuses to investment bankers, in an attempt to tie pay more closely to performance. The bonuses that Bank of America will award Monday will generally be about 25 percent cash and 75 percent tied to stock, said spokesman Bob Stickler.

The higher-ranking bankers will be paid the least cash, with some getting as little as 5 percent cash.

Also this year, the bank put "clawbacks" on employees in global markets and global trading, provisions that allow for reclaiming bonuses if failings surface later.

Stickler said that, on average, investment banking bonuses for 2009 performance will be higher than those awarded for 2008 performance, a down year. But they will be lower than most previous years.

He declined to comment on the size of the bonus pool, though some reports, citing unnamed sources, have said the bank will pay investment-banking employees from a bonus pool of about $4.4 billion, or an average of $400,000 each. "


"Employees at Wells Fargo won't get their bonuses until next month, but the bank says that its total pool for bonus and commission pay is up about 66 percent over last year.

According to its latest earnings report, Wells had $8 billion in its pool for total bonuses and commissions, up from $4.8 billion last year for the combined bank. Those numbers include year-end bonuses for bankers as well as commissions for mortgage consultants and stockbrokers. However, some of that money has already been paid out, because commissions are awarded on a monthly or quarterly basis.

Wells reported a profit of about $8 billion in 2009, counting preferred dividend payments."

http://www.charlotteobserver.com/business/story/1234402.html

 
Feb 24, 2010 - 1:50am
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