4/29/17

I'm curious to see how everyone fared in terms of commercial/corporate banking bonuses this year. Especially interested to hear about people who are only 1-2 years out of school (however, please feel free to share numbers for all roles and levels)

Personally: Bulge bracket commercial bank, ~2 years in, bonus of ~8% as compared to base

Thanks guys!

Comments (85)

2/21/17

bump for the morning crowd.

Investment Banking Interview Course

2/22/17

Bulge bracket commercial bank: 6% (of base) stub bonus for August to December.

First-year. Started off in the high $60's/low $70's range so it's OK for a 40-hour a week kind of job.

2/22/17

just curious, what is your percentage jump in base?

6/19/17

What do you do?

6/19/17
Lunchbox12:

What do you do?

Analyst in a Commercial Banking product group in the Southeast (ATL/Charlotte)

4/19/17

I thought this thread would have generated some more interest than it has.

4/19/17

Corporate Banking:
1st year: 75k + 35% bonus
2nd year: 85K + 35-40% bonus
3rd year: 95K + 40-45% bonus

4/19/17

FinCo Commercial Banking, out of school, rough numbers

1st year: 65k + 25k
2nd year: 70k + 35k

4/19/17
AlphabetSoop:

FinCo Commercial Banking, out of school, rough numbers

1st year: 65k + 25k2nd year: 70k + 35k

Not bad.

4/19/17

What do rms get in base and bonus?

4/19/17

At my old bank they got a low base, high 100s-low 200s, but a fixed commission of fees brought in. They could only earn a commission every x months per client so you knew exactly when they were pitching next for amend and extend.

4/20/17

So they earned a comission multiple times a year even on renewals? Sounds like a good gig.

4/20/17

Believe it was earned per deal but paid out during bonus season. Not an expert, I was a credit analyst.

4/20/17

In Corporate. Directors are making ~$200K+ base and bonus north of $200K. MD's are making $250-300K based on seniority and bonus north of $250K.

Bonus is based on a combination of TBR, NBR, Cap Market Fees, and new clients onboarded.

4/20/17

What is nbr and tbr?

4/20/17

total book revenue and new book revenue

4/20/17

2nd year corporate banking analyst. Base of 73k with bonus of 17%. Rarely work over 50 hours per week. Wondering if I should be pissed or not

4/20/17
deas7:

2nd year corporate banking analyst. Base of 73k with bonus of 17%. Rarely work over 50 hours per week. Wondering if I should be pissed or not

BB?

4/20/17

WF/BOA

4/20/17

Are you in a low cost of living city? Also, are you corporate credit or corporate banking?

4/20/17
deas7:

WF/BOA

Assuming you're in the South, but I thought corporate Banking paid the same base as IB? That seems low.

Speaking from experience, I interviewed and received offers for 3 BB Commercial Banking positions in the South and the lowest base offer I received was in the high $60's and the highest was in the low $70's.

4/24/17

Used to be at one of those firms and have a good friend who works at the other. Sounds like WF because BofA corporate credit is 60/70/80/100 and bonus is about ~20% at the analyst level.

WF corporate and commercial pay is basically in line but higher for corporate.

The only banks that are paying very a decent chunk more are JPM/Citi and I believe SunTrust (at the corporate level). For the first two banks you have only a few offices to chose from and STRH you are limited to the southeast.

I wouldn't be pissed what you are getting is well in line with the industry and you could always change shops if you want to earn more. Keep in mind you will be leading many more deals at BAML/JPM/WF than anywhere else so that experience is quite valuable and will translate to higher earnings down the road.

4/21/17

That does seem kind of low. But don't worry bro, I live in North Dakota and will be completing my 3rd year in May, and will only be making $40K a year with no bonus (started at $33K). Where I live isn't especially cheap for housing either, it's comparable to Minneapolis.

4/21/17
deas7:

2nd year corporate banking analyst. Base of 73k with bonus of 17%. Rarely work over 50 hours per week. Wondering if I should be pissed or not

That does seem kind of low. If it makes you feel any better I live/work in North Dakota and make $40K a year as technically a 3rd year analyst in commercial banking. Cost of housing isn't especially cheap here either.

4/20/17

Big city in the south. portfolio management/underwriting

Investment Banking Interview Course

4/21/17

My name's Jim Lahey, and I have diabeetus

I AM THE LIQUOR

6/19/17

Is that you or the liquor talking Mr. Lahey?

4/21/17

What are the exit ops for commercial banking?

4/21/17

depends on how skilled the person is I feel like. Could be corporate banking, investment banking, or something else in finance.

4/22/17

Does commercial banking involves financial modelling and valuation?

4/22/17

No

4/22/17
Pio nono:

No

I do a ton of modeling. This is typically modeling out financial projections over the life of the credit facility. I've also been able to do some M&A modeling when an existing client is merging with or acquiring another Company and they want a larger credit facility and want to extend the maturity.

I've found that experience to be really useful.

4/22/17

Do you model off of a template or build your own models?

4/24/17
WallStreetJunkie123:

Do you model off of a template or build your own models?

Both. For instance we have a template that was built in shop that lets you plug in IS and BS assumptions, growth rates, etc in addition to multiple tranches of debt with various assumptions ... there is zero need to start from scratch as that would just take more time. Almost everyone uses some fort of template as it saves time and gives you sophisticated functionality.

For a M&A scenario (typically done for underwritten bridge financing) you could start from scratch as there are a lot of assumptions going into the model; however you could just setup the BS for time 0 in a separate tab but use the template for future periods as its pretty straightforward after that.

4/30/17

Yeah I don't do any of that not do I have any credit training or accounting training of any kind.

4/24/17
Toys-R-Soros:

Does commercial banking involves financial modelling and valuation?

Yes, building operating models with a focus on free cash flow.

Non-investment grade deals reliant on enterprise value will involve dcf / comps analysis to arrive at EV. This is more of a ballpark approach and less technical than you would do in investment banking.

4/25/17

Ok, cool. My employer suggested one of of my work tasks to be to value 16 of their subsidiaries in detail (a handful being stock listed) during my 8 week internship. I had to happily deny that, as that would be too ambitious. But I guess it has to be similar to what you said about how commercial banking do valuations.

4/26/17

... why didn't you do that? It would have been great experience.

4/26/17

I know. But I have seen previous valuations of their subsidiaries by MSF students, and 2 people spent 6 months on 1 subsidiary (200 page report). +16 subsidiaries in 8 weeks would be way above my skills and workload.

4/21/17

Top 10 (RBC/WF) 3rd yr corp banking analyst, $95k base / $50k bonus

4/21/17

that's solid. How many hours do you work a week on average?

4/24/17

On average 9-7/8, so about 50-55 hrs, but during live deals I've stayed a bit later (latest being 2am one time) and had come in on Sundays a few times.

4/24/17

Are you working more on writing memos or pitching cross sell?

4/24/17

Would like to know as well (whether you're on the credit or sales side)

4/24/17

As an analyst, I was more on writing memos. My group's portfolio primarily consisted of sponsor backed leveraged loans in which we originally entered the relationship via underwriting an LBO financing. After LBO closure and loans syndicated, our group would typically hold a RCF portion and manage the credit relationship from then on (Refi, amendments, etc.). The MDs on the IB coverage team would be the main relationship bankers and would work with the appropriate product team (corp banking, DCM, lev fin, etc.) during deals.

4/24/17
Y2A:

Top 10 (RBC/WF) 3rd yr corp banking analyst, $95k base / $50k bonus

How difficult would a transition be from Commercial Banking at a BB to Corporate Banking at a Top 10 (excluding WF/JPM/Citi/BAML)?

I'm in a structured product group, but more than 60% of the clients I deal with are considered mid-corporates (generally between $500mm and $3Bn in revenue)

4/24/17
newschool332:

Y2A:Top 10 (RBC/WF) 3rd yr corp banking analyst, $95k base / $50k bonus

How difficult would a transition be from Commercial Banking at a BB to Corporate Banking at a Top 10 (excluding WF/JPM/Citi/BAML)?

I'm in a structured product group, but more than 60% of the clients I deal with are considered mid-corporates (generally between $500mm and $3Bn in revenue)

Pretty easy to do internally via networking, I've personally done it at a BB.

Skill set is exactly the same. At times you have a disparity in talent at corporate vs commercial with higher work quality and higher caliber individuals at corporate. Some folks in commercial are very work-life balance 9-5 driven but then there are certain groups at commercial that mirror corporate work ethic, quality of talent, hours, etc. with the only difference being the size of clients they serve.

Feel free to pm me for more info.

4/24/17
B2Banker:

newschool332: Y2A:Top 10 (RBC/WF) 3rd yr corp banking analyst, $95k base / $50k bonusHow difficult would a transition be from Commercial Banking at a BB to Corporate Banking at a Top 10 (excluding WF/JPM/Citi/BAML)?I'm in a structured product group, but more than 60% of the clients I deal with are considered mid-corporates (generally between $500mm and $3Bn in revenue)

Pretty easy to do internally via networking, I've personally done it at a BB.

Skill set is exactly the same. At times you have a disparity in talent at corporate vs commercial with higher work quality and higher caliber individuals at corporate. Some folks in commercial are very work-life balance 9-5 driven but then there are certain groups at commercial that mirror corporate work ethic, quality of talent, hours, etc. with the only difference being the size of clients they serve.

Feel free to pm me for more info.

Agree with B2Banker, very similar skill set for corp vs. commercial banking so it shouldn't be too difficult. Definitely tougher to transition from corporate banking to investment banking though, but I've seen it done.

Best Response
4/24/17

Great thread, glad to see more posts on this topic.

I've been at both the BB and large regional bank level. Bonus has ranged from low to mid 20s for the past few years.

At the Bb corporate banking level base would increase between 5-10k per year depending on bank and at the commercial level you can get a 10%+ bump when getting promotions or changing shop.

Not to hijack but thought I would use this opportunity to share a few observations I have with analysts and prospective monkeys on the industry.

Don't just follow the money, experience and name brand matters.
- Some of the BB's will underpay you relative to peers (BAML / WF) however do not discount the experience. I have seen folks work at these shops for a short while and then jump ship to a regional bank for a 15-20k bump. However quality of experience is lower.
- Vast majority of deals are lead by BBs which means you will have more deal flow and over time (mainly at the associate level) start getting involved in deal structuring.
- BBs are going to be leading deals (taking about Left Lead, not passive JLA roles) more often than not so the bankers on those teams will get experience putting in place inaugural credit facilities, adjusting terms to market, negotiating with the client, and helping syndications field questions from other lenders
- At a smaller bank, you will typically be participating in these deals and will not have much leverage to change deal structure. Your job will primarily involve financial analysis of the borrower but miss out on the structuring part.
- Higher caliber professionalls work at BBs. There are certainly good people at the large regional and mid-level banks however there is a higher concentration of talent at the BBs. This means being surrounded by some of the best minds in the industry to learn from during your development years. When I moved from a BB to a smaller bank, I went from learning to teaching although I still have plenty to learn.
- BBs are are full service platforms and have the most cross-sell with their clients so you will develop a better understanding of the various non-credit products in addition to capital markets. BBs committ more to transactions and are better positioned to win ancillary business than banks with smaller balance sheets so you will have a better opportunity to see how these products work for your clients.
- BBs have a bigger investment banking presence than other banks which means more interaction and networking opportunity with various products and industry groups.
- I personally came up at a Bb and then went to a smaller bank and most of the folks that I've encountered with the same years of experience had much less exposure to lead deals, modeling, structuring, etc. than I did which helped to set me apart.

Each bank is structured differently
- Although the roles are fundamentally the same, each bank will have different role and promotion structure in addition to key responsibilities.
- for instance certain banks structure their teams similar to IBD with analysts / associates / vp / director, etc. whereas others run a flatter structure such as underwriter / senior underwriter / portfolio manager. The flatter the structure, the more difficult it is to push down mundane tasks (annual reviews) as there is no one to push down to
- In some banks the credit role gets less respect than in others. For instance, in certain banks, the underwriting side just puts together the credit memo and the coverage banker or RM will talk to the client / syndications, structure the deal, present the deal internally to credit committee. In other banks, credit is more like an IB product group that owns and runs the entire process soup to nuts and coverage bankers just bring in business and stay out of execution.
- Smaller banks have less built out middle / back office which means front office gets stuck doing more administrative functions and systems are not as good.
- When changing jobs don't just focus on the things you don't like about your current bank that you want to change but make sure you get a good understanding of how your new group is structured so you know what you are getting into.

Exit opportunities
- Exit opportunities depend entirely on you and what you make of them
- Contrary to what some people say on this site, exits can be rather broad. Given I had BB corporate banking experience, investment banking and capital markets has been a very realistic exit for me and I have had opportunities to make the move at both the analyst and associate level.
- The key is to develop a good working relationship with groups that you work with (industry coverage, capital markets, syndication, M&A, etc) and put your best foot forward. In my interactions I've been able to demonstrate that I know the industry that I cover and that my work product is on par with that senior bankers are used to seeing from their junior staff.
- Network with other groups and use your contacts to introduce you to others
- For well respected junior bankers with a good internal network, it is quite feasible to move into almost any group within the bank.
- External exits are typically other banks, b school for career changers, working for a client, or corporate finance jobs. Depending on your market (NYC) moving to a mezz fund or BDC is possible. PE/HF are obviously not traditional exits and you'd need to move into IBD first to have a chance.

4/25/17

+1 Awesome post, very much appreciated.

Just out of curiosity, did/do you work in a general group or a coverage group in the corporate bank?

Also, when you say associate, do you mean a RM and/or PM type of role, or are you referring more to the type of associate role in IB?

Thanks again

Array

4/25/17
<span itemprop=name>Chaunce</span>:

+1 Awesome post, very much appreciated.

Just out of curiosity, did/do you work in a general group or a coverage group in the corporate bank?

Also, when you say associate, do you mean a RM and/or PM type of role, or are you referring more to the type of associate role in IB?

Thanks again

I was initially in a generalist role but covered an industry vertical later on.

I was in corporate banking on the underwriting side. Titles were analyst, associate, vp, director, Md. VP+ was the primary contact for the companies thy covered.

4/24/17

Bonus was about 7% of base. Credit gig.

4/24/17

Second year base was 85k, bonus was 25k. First year it was 80k, 10k but the 10k was considered pro-rated since I had started mid-year. My understanding is that base and bonus jump about 5k and 10k respectively per year plus more for promotion points. This is for a MM commercial bank in NYC, not BB and not regionally focused.

4/24/17

Corporate Banking (Top 10 I-Bank):
A1: $85k + ~$45k
A2: $90k + ~$55k
A3: $95k + ~$65k

Aso 1: $140k + ~$80k-$100k

60-70 hours/week on average. Summers are more around 50; heavy deal flow around 80. Some weekends. NYC.

4/24/17

Is that a bank that has CB and IB under the same umbrella like Citi? Numbers look good.

4/25/17

Is that top bucket?

4/25/17
<span itemprop=name>monkeys_like_bananas</span>:

Corporate Banking (Top 10 I-Bank):A1: $85k + ~$45kA2: $90k + ~$55kA3: $95k + ~$65k

Aso 1: $140k + ~$80k-$100k

60-70 hours/week on average. Summers are more around 50; heavy deal flow around 80. Some weekends. NYC.

Sounds like JPM/Citi or a non-US bank. Those are really great numbers but unfortunately far above average for the industry.

4/26/17

Anyone have an idea of what more senior people in Commercial/Corp banking pull in? I'm assuming most people plan to stay the course and I've heard the biggest variation from IB pay comes as you progress, so I'm curious to hear what people would estimate a VP+ plus would make in a major city (looking more BB, not counting regional banks were it's primarily commission based).

4/26/17
<span itemprop=name>jcc24</span>:

Anyone have an idea of what more senior people in Commercial/Corp banking pull in? I'm assuming most people plan to stay the course and I've heard the biggest variation from IB pay comes as you progress, so I'm curious to hear what people would estimate a VP+ plus would make in a major city (looking more BB, not counting regional banks were it's primarily commission based).

For a commercial banking VP on the underwriting side comp isn't anything to write home about, not uncommon to have a base of 100-130 and 20-30% bonus. Changing banks every few years can help accelerate your pay trajectory. The hours are very light, 9-5/6 and there is good flexibility. Would expect most people to come under 180k all in.

On the sales side base is similar, low-mid 100s but much higher variable comp of 50%+. On the flip side, if you do not produce, you will be pushed out after some time.

Corporate really varies on the bank. I don't have any close connections at the Director+ level but not hard to extrapolate that the bank's paying associates 150-170k all in that Directors are making mid 200s if not higher. Wouldn't surprise me if banks such as BofA and WF which tend to pay less are paying 190-200.

My Corp banking numbers are anecdotal as I am not at that level but I can vouch for the commercial banking salaries. Sales side has much higher upside but you need to drive business. Arguably it's easier on the corporate side as there is a limited number of large corporates and they all have an established relationship with your bank, so you're taking over someone's clients. Commercial on the other hand you are expected to source new relationships which is difficult as every decent company is over banked already.

4/28/17

8% is definitely a Wells Fargo Financial Analyst Program (FAP) bonus. At junior levels you have less control over your bonus so you typically get target or slightly above.

I can tell you generally how compensation works, but remember these numbers can be higher or lower depending on experience, industry vertical, and line of business (Commercial Banking/Corporate Banking/ABL Lending/Equipment Financing). Bonus target percentages are pretty standard until you get to AVP/VP level. Rule of thumb is the closer you are to revenue production/originations, the more money you will make.

Note: These are SoCal number so the base salaries for places like NYC/SF would pay higher and areas like Phoenix/Vegas/Des Moines/Fresno would be lower.

Corporate Banking /Commercial Banking:
Analyst: $60-65K with 8% target bonus (2% pay bumps annually and typically promoted by year 2-3)
Senior Analyst/Associate (RM1): $70-85K with 15-25% bonus
AVP (RM2): $99-104K with 25-30% target bonus
VP (RM3): $110-140K with 30-60%+ target bonus (wide range because it's heavily based on sales goals)
SVP (RM4):$180-195K with 60-100%+ target bonus (wide range because it's heavily based on sales goals)
Managing Director - Not going to speculate because I don't know anyone personally at this level, but you can extrapolate!

Corporate/Commercial ABL lending group (portfolio management side):
Analyst: $60-65K with 8% target bonus (2% pay bumps annually and typically promoted by year 2-3)
Senior Analyst/Associate (RM1): $73-85K with 20% target bonus
AVP (RM2): $100-105K with 25% target bonus
VP (RM3): $110-131K with 30% target bonus
Director (RM4) $170-180K with 35-40% target bonus
Managing Director - Not going to speculate because I don't know anyone personally at this level, but you can extrapolate!

4/29/17

Those numbers seem pretty low honestly. If the corporate banking guys are under the investment bank, it should be higher.

Corporate banking at my bank

1st Year Analyst - 70K + up to 30%
2nd Year Analyst - 80K + up to 30%
3rd Year Analyst - 90K + up to 30%

1st Year Associate - 105K + up to 50-70%
2nd Year Associate - 115K + up to 50-70%
3rd Year Associate - 125K + up to 50-70%

4/29/17

I'm referencing numbers for WF which doesn't structure their Commercial, Corporate, or ABL groups under the I-Bank so salaries/bonuses are lower. Commercial Banking salaries/bonuses are typically lower than Corporate Banking, but again it varies.

4/29/17

A 3rd year associate at my BB (commercial banking) made $115K last year all-in. Southeast.

4/29/17

Anyone in JPM commercial banking?Most of these info are about corp banking or commercial banking at BoA/WF/BAML so I wonder

4/29/17
<span itemprop=name>baconhater93</span>:

Anyone in JPM commercial banking?Most of these info are about corp banking or commercial banking at BoA/WF/BAML so I wonder

A buddy of mine is at JPM. $68K base, 10% bonus. First year

4/30/17

Do you know what they say about % jump?

4/30/17

@newschool332 numbers seem right.
A buddy of mine, recent grad, starting this summer at JPM/WF/BoA will be getting a 62k base, 10k sign on bonus. Not sure about the end of year bonus.

Not bad considering his trash GPA and minimal efforts lol

4/30/17
<span itemprop=name>Santas-Frozen-Assets</span>:

@newschool332 numbers seem right.A buddy of mine, recent grad, starting this summer at JPM/WF/BoA will be getting a 62k base, 10k sign on bonus. Not sure about the end of year bonus.

Not bad considering his trash GPA and minimal efforts lol

From what I understand, JPM pays a higher base than WF/BOA, but bonuses and annual raises tend to be slightly lower than WF at the Analyst level.

4/30/17

That seems to be in line with the numbers I know. Corporate banking can be underrated - if you're willing to put in the hours of an investment bank at a corporate banking gig, you could make a killing

Considering all people I've talked to, those relocating to Charlotte for a WF/BoA gig, receive a smaller, but not crucial, base than JPM in Chicago/Dallas/NY. I personally dislike Charlotte, though.

I'd also like to point out that some super regional banks like PNC & SunTrust pay a slightly higher base of ~68k-72k, but the exposure to quality dealflow diminishes. Clients also tend to generate smaller revs', more mom&pop type. Last I heard, PNC is trying to grow their footprint into other regions by sponsoring many events, building presence, etc.

4/30/17
<span itemprop=name>Santas-Frozen-Assets</span>:

That seems to be in line with the numbers I know. Corporate banking can be underrated - if you're willing to put in the hours of an investment bank at a corporate banking gig, you could make a killing

Considering all people I've talked to, those relocating to Charlotte for a WF/BoA gig, receive a smaller, but not crucial, base than JPM in Chicago/Dallas/NY. I personally dislike Charlotte, though.

I'd also like to point out that some super regional banks like PNC & SunTrust pay a slightly higher base of ~68k-72k, but the exposure to quality dealflow diminishes. Clients also tend to generate smaller revs', more mom&pop type. Last I heard, PNC is trying to grow their footprint into other regions by sponsoring many events, building presence, etc.

How difficult would it be to move from commercial banking at a BB to corporate banking at a regional? I haven't seen much on this topic.

4/30/17

I'd say fairly easy, depending on the regional banks need. I have seen some people jump from BB commercial, after putting in 2-4 years, to regional corporate or even IB. I've seen it with BBVA, PNC (although their IB branch isn't directly associated to them), BNP Paribas, and SunTrust.

Those that do lateral into higher regional gigs had a great gig at a BB doing syndication and smaller asset backed lending. The jump is made into regional debt capital market products and complicated ABL. I know a buddy even made a jump from BB commercial -> regional corporate -> specialized/industry restructuring. Just gotta play your cards right

5/1/17
<span itemprop=name>Santas-Frozen-Assets</span>:

<

p>That seems to be in line with the numbers I know. Corporate banking can be underrated - if you're willing to put in the hours of an investment bank at a corporate banking gig, you could make a killing

The issue is credit roles are non-revenue generating so bonuses are capped. All banks are trying to reduce compensation given tepid revenue growth and underwriting/credit are a prime target for bonus cuts.

You will certainly distinguish yourself by working more and doing better quality work. Really depends on the culture of your shop if that will enable you to be promoted earlier or paid better. My old BB was very structured and there was no way to receive an early promotion and the bonus range was very tight.

5/1/17

Just left MM Corporate Banking for M&A, these were our numbers:

(Wrapped up in CIB umbrella)
Ana1: 80k + 27k-35k (+ 12k signing)
Ana2: 85k + 35k-42k
Ana3: 90k + 42k-50k

Associate: 110k-125k base + ~50% bonus

Average week: 55 hrs + a few hours on the weekend

In high cost of living city.

6/19/17

I'm 1 year in at a $40B regional in the midwest with very low COL. I work on some syndicated credits but mostly see ABL deals for companies with $40MM-500MM in revenue. The most fun I've had is working on acquisition financing for smaller companies and getting to sit down with clients.

First year signing bonus of $5k + $60k base + 10% bonus. Did not come through their training program but interviewed well and am getting to act as an officer on some of our smaller accounts. Seems like with a solid credit understanding and good people skills, the sky is the limit. Salary progression seems to really pick up after the first 3 years. There are two people 30 and under in my group who are lenders and easily pull $200k/year with relatively small portfolios.

I'm scared of getting pigeon-holed in commercial lending but my hours are awesome and I work with great people so I'm gonna stick it out a while.

Glad to see more threads like this, not a ton of information out there on the commercial side.

8/3/17

These seem really low...
Currently started 2nd year at a corporate bank

85k + 65k bonus. Our bonuses are the same as IB.

8/3/17

That 85k + 65k was for a 2nd year analyst position in Corp Banking?

8/3/17

First year

8/6/17
8/6/17

Yup

8/7/17

What are your hours like? What group are you in? Can you explain your underwriting process.. in terms of how long it typically takes, how many presentations you complete a year, how your approval process works, etc?

Thanks!

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