2014 Associate Salary + Bonus? Elite Boutique

Base for Associate 1 is $125,000. Bonus is about 100%, give or take.

Authored by: Certified Investment Banking Professional - DirectorCertified Investment Banking Pro

CountryUnderdog

Neanderthal

BBs have bumped A0 to $125 and A1 to $140-150, so I doubt EBs are this low

"They are all former investment bankers that were laid off in the economic collapse that Nancy Pelosi caused. They have no marketable skills, but by God they work hard."

bootsnapper

Orangutan

Is the 100% top bucket? Or Mid? What is the range I guess is what I am getting at?

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100% is the mid-point. Top performers are getting paid more than that.

Authored by: Certified Investment Banking Professional - DirectorCertified Investment Banking Pro

"A0" refers to the gap between end of summer and year end, when MBA grads typically start working as associates. During that time, they are paid what they will get paid as full-fledged first year associates (A1) the following year. Thus, there is no increase in base comp between A0 and A1.

RIght now, the EBs are paying base salaries at these levels: A0/1 $125,000 A2 $150,000 A3 $175,000

Authored by: Certified Investment Banking Professional - DirectorCertified Investment Banking Pro

HarvardOrBust

Neanderthal

elephantastic:

"A0" refers to the gap between end of summer and year end, when MBA grads typically start working as associates. During that time, they are paid what they will get paid as full-fledged first year associates (A1) the following year. Thus, there is no increase in base comp between A0 and A1.

RIght now, the EBs are paying base salaries at these levels:
A0/1 $125,000
A2 $150,000
A3 $175,000

Wow... Doesn't seem like there's a very big gap at all between PE and banking associate pay

Authored by: Certified Private Equity Professional - 2nd Year AssociateCertified Private Equity Pro

Yep. A top bucket A3 will make over $400,000.

The trouble is that after you hit VP, you will be increasingly expected to bring in client relationships, and your pay will vary as such. It's not uncommon for VPs to make less than associates.

Authored by: Certified Investment Banking Professional - DirectorCertified Investment Banking Pro

NorthSider

Mentor

Human

HarvardOrBust:

elephantastic:

"A0" refers to the gap between end of summer and year end, when MBA grads typically start working as associates. During that time, they are paid what they will get paid as full-fledged first year associates (A1) the following year. Thus, there is no increase in base comp between A0 and A1.

RIght now, the EBs are paying base salaries at these levels:
A0/1 $125,000
A2 $150,000
A3 $175,000

Wow... Doesn't seem like there's a very big gap at all between PE and banking associate pay

Generally not a significant gap between EBs and larger PE funds, but remember that Associate roles in IB are post-MBA, as opposed to being pre-MBA on the PE side.

"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."

Are pre-MBA PE associates really making anywhere near $400,000? Seems like post-MBA associates are more likely to be in that ballpark.

Authored by: Certified Investment Banking Professional - DirectorCertified Investment Banking Pro

2 replies

HarvardOrBust

Neanderthal

Best Response

NorthSider:

HarvardOrBust:

elephantastic:

"A0" refers to the gap between end of summer and year end, when MBA grads typically start working as associates. During that time, they are paid what they will get paid as full-fledged first year associates (A1) the following year. Thus, there is no increase in base comp between A0 and A1.

RIght now, the EBs are paying base salaries at these levels:
A0/1 $125,000
A2 $150,000
A3 $175,000

Wow... Doesn't seem like there's a very big gap at all between PE and banking associate pay

Generally not a significant gap between EBs and larger PE funds, but remember that Associate roles in IB are post-MBA, as opposed to being pre-MBA on the PE side.

That's not true.. you can be an associate without getting your MBA. You would just have to spend a third year as an analyst. If you're an A1 at a bank and assume that you get 100% of your base as bonus, the $250K is just under MF A1 comp by maybe $25-50K. I think the pay escalators in PE are the similar as well.

Authored by: Certified Private Equity Professional - 2nd Year AssociateCertified Private Equity Pro

1 reply

snakeoil

King Kong

Can anyone comment on the fact that EB's only hire MBA students who did IB Analyst stints prior to B School?

hamm0

King Kong

Not true. Preference for? Sure, but that is true in a lot more than EBs.

Authored by: Certified Investment Banking Professional - 2nd Year AssociateCertified Investment Banking Pro

NorthSider

Mentor

Human

snakeoil:

Can anyone comment on the fact that EB's only hire MBA students who did IB Analyst stints prior to B School?

I can comment on the fact that this is not a fact.

bootsnapper

Orangutan

Same, I know multiple associates hired by EBs with no prior banking experience what so ever. I know a person at an EB who worked in the public sector (policy related) prior to B-school and is now an associate...

LBO Model vs DCF

SuperHans

Baboon

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