Rothschild London Compensation?
Hi, can anyone provide any information on pay for Rothschild London? Every forum I find online says they pay below market standard and have low bonuses? The forums also mention there is a "Rothschild discount" i.e. they pay less because of the prestigious brand, is this true?
I spoke to a friend who worked there and left in 2017 to join another EB. I asked her about pay and she also told me it lower than market standard she said associates made around £80k base and £60k bonus which sounds terrible for IBD at an EB. But this was 2017 so quite outdated, wondering if there have been any improvements since then?
E.g. I work at a MM IB in London and my first year associate comp was £90,000 base plus £130,000 bonus and this wasn't even our top bucket. I was in the "met expectations" category so I assume the "above expectations" category got more, maybe like £140k if I was to guess. So hearing Rothschild pay associates £80k base with £60k bonuses sounds shockingly bad?
Your friend’s numbers are in the correct ball park.
Damn, I feel like it's criminal to pay an IBD associate that low.
Do you work there or have friends there?
It's standard associate comp for BBs. Roths and Laz in LDN pay in line with BBs, i.e. much much less than what you are currently getting at your MM.
Where are you working where you get £130k bonus? Do they pay you in USD which is then converted to £?
There's another thread that talks about comp here - https://www.wallstreetoasis.com/forums/london-banks-that-pay-low-bonuses and here
https://www.wallstreetoasis.com/forums/no-bullshit-london-bonuses
https://www.wallstreetoasis.com/forums/eb-compensation-london-2021
Yeah, it is a US MM IB (raymond james, jefferies, lincoln, wells fargo etc..)
Thanks for sharing those links.
Do you get paid in USD by any chance? Is it why it’s higher?
GBP80k base is standard base comp for Associates across BBs. Bonus of GBP60k is actually quite good if you compare it top BBs. I can at least confirm that you would not get half as much (of 130k) at GS as 1st year Assoc. Last year comp at GS has been especially horrible (while already being bottom comp across BBs / EBs).
GBP130k is absolutely unheard of, more than what you would get at MF PE / Credit. Who pays this? 130k is senior assoc bonus at GS (just before making VP).
It must be an American MM (maybe Jefferies or William Blair)
Thanks for the comment, yeah I heard GS pays very low i.e. the "GS discount" but I'm surprised an EB like Rothschild also pays low. I naturally thought EB's pay a 10-30% premium compared with BBs. £60k bonus to a first year IBD associate is definitely terrible. Credit Suisse paid their third year analysts a £60k bonus in London... I also feel it is normal for IBD to pay above PE for the analyst and associate levels, and then VP and above PE pays more once carried interest kicks in.
£90k base and 100% bonus for associate 1 is definitely market standard across BBs, look at Arkesden's report which is very accurate gives a full breakdown of BB base and bonus figures for each level and bucket. E.g. report shows BAML paid £90k base and £125k bonus to first-year associates (I can actually confirm this is very accurate as I have a friend there who got pretty much the same as this). I even know some senior analysts at BBs who got above 100% bonuses.
https://www.arkesden.com/investment-banking
I work at a US MM IB (raymond james, jefferies, lincoln, wells fargo etc..) and got £130k bonus. I know there are definitely other EBs/MM that pay more than us e.g. I heard CVP, Evercore, WB, PWP pay 150-200% bonuses to associates. There was an efinancials article on PWP paying on average £300k to associates.
Thank you for the link.
Just to clarify - I was referring to AN3 / AS0 which is what I thought 1st year Associate was referring to given most banks have 2y Analyst programmes by now. If you look at these numbers, 80-90k base + 60k bonus (which is more the upper end which I can confirm) checks out.
You are right, CVP and PJT definitely can pay more than 100% on this level already and might then even match / exceed MF PE / Credit which usually is (slightly) higher than IB BB at the analyst and associate level already. Don't think PWP pays as much. I know first years numbers from 2019 bonus cycle and they were paid 40-45k (which is still very good and more than any BB but not as much as PJT and Centerview).
Insane that MM pay as much / top of the market - absolutely wasn't aware.
Aso1 is 90k base. Bonus % is in line with the thread,maybe slightly higher
Is this for Rothschild so it is now £90k and $60k bonus for 1st year associates at Roths?
I meant £90k base and % of base above (i.e. less than 100%, more like 70-90%) is in line. So for Aso1 that would be 90 + 60-80k I guess.
Think about it from the firms perspective - you want to attract and retain talent, there's 4 ways to do this:
1) Pay
2) Brand
3) Actual work
4) Other working conditions (often defined as culture)
For the sake of this argument let's not look at 4 as team dependant and 3 given this is IB should more or less be the same (i.e. why people leave to the buyside as it is "more interesting"). So there is a trade off between pay and brand - if you have a legendary brand that people drink the Kool-aid for, then you don't have to pay them much (Rothschild, GS) even if you can afford it - why would you? On the other side of the table there is your shop which I assume flies under the radar, is not well known and most likely closes MM deals (nothing wrong with it but people in general think bigger is better - and not just for deals if you get what I am saying) and thus to 1) attract and 2) retain talent needs to pay above market.
Now you will say but so why does HSBC / BNP / SocGen and others not pay over market - the answer is simple, they cannot afford it as quite frankly they are in an odd segment where they need coverage teams but don't do enough deals (mostly financing with small allocations) to be profitable and thus cannot pay well their bankers on top of having a massive layer of "corporate costs" that MMs/Boutiques don't have.
Hope this now makes sense to you - and if your post was to flex your comp, good on you mate!
Thanks for the reply, this makes a lot of sense, can I PM you?
Shoot.
Out of curiosity, do you have any info on how much said banks (HSBC / BNP / SocGen) pay?
Base is typically in line with other BBs but falls behind after few years. Bonuses are also lower than the weaker BBs typically. Don’t have exact numbers but you should be able to understand ballpark where this lands you.
Repudiandae aut aut cumque at consequatur id dicta maxime. Modi aut consequatur totam dolore expedita distinctio iure.
Et necessitatibus ea quibusdam sed qui voluptas quisquam ut. Temporibus occaecati debitis est qui quo vero explicabo.
Natus id unde minus laboriosam. Laudantium possimus dignissimos minus odit explicabo facere porro. Quia delectus enim dolores similique tenetur tenetur consequatur. Incidunt perspiciatis sit nihil quia soluta.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...