4/24/17

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 (56)

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?

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.

Investment Banking Interview Course

4/20/17

Big city in the south. portfolio management/underwriting

4/21/17

My name's Jim Lahey, and I have diabeetus

I AM THE LIQUOR

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.

4/24/17
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
Chaunce:

+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
monkeys_like_bananas:

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
4/26/17
4/28/17
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