2013 Bonus Season: increase from the weak bonuses?

So what do you guys think? Fees have been revived a little bit in the LTM, particularly with the huge deals in Q1'13. Are we going to see an increase from the weak bonuses of last year?

 

Not sure that top-bucket analyst bonuses are that group dependent or even that bank dependent. So often the banks want to stick to "street level" bonuses, that, at least for top-ranking analysts, the numbers are fairly similar, maybe 5-10k different. I agree, though, that at associate and above and even mid to low bucket analysts there's significantly more group and bank dependent variability

 
ayoayo:

Not sure that top-bucket analyst bonuses are that group dependent or even that bank dependent. So often the banks want to stick to "street level" bonuses, that, at least for top-ranking analysts, the numbers are fairly similar, maybe 5-10k different. I agree, though, that at associate and above and even mid to low bucket analysts there's significantly more group and bank dependent variability

To clarify - if you're in Barcap municipal finance vs M&A, there will be a noticeable difference in average numbers. Top bucket will be top bucket, but only the top couple analysts even make it there.

 

The compensation consultants say pay will be up a tad this year, but analyst bonuses are always tough to predict due to the random rounding to the nearest $5k.

"For all the tribulations in our lives, for all the troubles that remain in the world, the decline of violence is an accomplishment we can savor, and an impetus to cherish the forces of civilization and enlightenment that made it possible."
 
ayoayo:

Agreed, but generally people reference top-bucket numbers when comparing bonuses across years

True, but that's a pretty misleading measure, to be honest. A lot of firms are propping up their top-bucket bonuses to match the Street, but making up the difference by cutting the lower-tier bonuses and decreasing the number of analysts that receive top-bucket pay. But I guess no one is shopping firms based on the mid- or low-tier bucket, even though that's what most of them will be receiving.

"For all the tribulations in our lives, for all the troubles that remain in the world, the decline of violence is an accomplishment we can savor, and an impetus to cherish the forces of civilization and enlightenment that made it possible."
 
NorthSider:
ayoayo:

Agreed, but generally people reference top-bucket numbers when comparing bonuses across years

True, but that's a pretty misleading measure, to be honest. A lot of firms are propping up their top-bucket bonuses to match the Street, but making up the difference by cutting the lower-tier bonuses and decreasing the number of analysts that receive top-bucket pay. But I guess no one is shopping firms based on the mid- or low-tier bucket, even though that's what most of them will be receiving.

agree completely
 
NorthSider:

True, but that's a pretty misleading measure, to be honest. A lot of firms are propping up their top-bucket bonuses to match the Street, but making up the difference by cutting the lower-tier bonuses and decreasing the number of analysts that receive top-bucket pay. But I guess no one is shopping firms based on the mid- or low-tier bucket, even though that's what most of them will be receiving.

I can't speak directly to the reasoning behind the practice, but I was told by a trusted friend that works for a sizable IB that something similar was going on at his bank. Essentially fewer people were getting top bucket and then the spacing between the other buckets was spreading out a bit and the folks in the bottom bucket were getting significantly less than the bucket above them...as opposed to years past were it might have just been $5k or $10k, it's more likely to be $15k or $20k.

Regards

"The trouble with our liberal friends is not that they're ignorant, it's just that they know so much that isn't so." - Ronald Reagan
 
Best Response
cphbravo96:
NorthSider:

True, but that's a pretty misleading measure, to be honest. A lot of firms are propping up their top-bucket bonuses to match the Street, but making up the difference by cutting the lower-tier bonuses and decreasing the number of analysts that receive top-bucket pay. But I guess no one is shopping firms based on the mid- or low-tier bucket, even though that's what most of them will be receiving.

I can't speak directly to the reasoning behind the practice, but I was told by a trusted friend that works for a sizable IB that something similar was going on at his bank. Essentially fewer people were getting top bucket and then the spacing between the other buckets was spreading out a bit and the folks in the bottom bucket were getting significantly less than the bucket above them...as opposed to years past were it might have just been $5k or $10k, it's more likely to be $15k or $20k.

Regards

That's correct. Ranges are much wider than they used to be. $20k is an understatement at some places.

"For all the tribulations in our lives, for all the troubles that remain in the world, the decline of violence is an accomplishment we can savor, and an impetus to cherish the forces of civilization and enlightenment that made it possible."
 

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