Am I underpaid? (update)

Guys, here is an update to my original post (posted in December).

I interned (unpaid) at a lower middle market investment bank (deal sizes between $10-50mm) in Orange County, CA for 3 months (Sep-Dec 2011) and was offered a job with the firm at the end of the year. The terms were $40k salary + a discretionary bonus of up to 100% of my base salary (so possible $40k bonus). The hours here aren't too brutal, I average 12 hour days but during peak times I may have to pull 2-3 all nighters in a period of a couple weeks.

At the end of the year I received a bonus of $20k (50% of what I could have made) so my total comp came in at $60k. I was told this number was not due not to my individual performance but the average performance of the firm for the year. Additionally, my base salary was increased by 20% for 2013.

What are your thoughts on my 2012 total comp? Is $60k worth the stress, long hours, etc.?

I am happy to provide more information if that helps.

Thanks in advance!

 

We can't tell you if you are content or not. If you think you deserve more money, apply elsewhere and see what other offers you can receive. If you find one you like and they pay better, take it. If you don't, stay where you are.

Frank Sinatra - "Alcohol may be man's worst enemy, but the bible says love your enemy."
 

You are being underpaid. But that doesn't necessarily mean you should leave. There are a lot of other things to consider - can you realistically find another job in banking? It is awfully difficult to network and interview for other jobs while holding down the job you currently have, plus you run the risk of losing that job if they find out you're interviewing at other places.

It also depends on your long term goals. You've already done a year as an analyst, if you only wanted to do two years then move on to something else, is it really worth the trouble and the risk to find another job if you're only going to be there one year, just to gain the incremental $20,000ish?

The reality is you made $80K this year. You could probably make $100 - 120 next year, IF you were able to find another analyst job. You've got to look at a number of factors - the experience you're gaining, your short and long term goals, and the risks and costs associated with going back on the job hunt while working the hours you are, and decide for yourself.

 
Best Response
tgfp20:
Guys, here is an update to my original post (posted in December).

I interned (unpaid) at a lower middle market investment bank (deal sizes between $10-50mm) in Orange County, CA for 3 months (Sep-Dec 2011) and was offered a job with the firm at the end of the year. The terms were $40k salary + a discretionary bonus of up to 100% of my base salary (so possible $40k bonus). The hours here aren't too brutal, I average 12 hour days but during peak times I may have to pull 2-3 all nighters in a period of a couple weeks.

At the end of the year I received a bonus of $20k (50% of what I could have made) so my total comp came in at $60k. I was told this number was not due not to my individual performance but the average performance of the firm for the year. Additionally, my base salary was increased by 20% for 2013.

What are your thoughts on my 2012 total comp? Is $60k worth the stress, long hours, etc.?

I am happy to provide more information if that helps.

Thanks in advance!

Yes, you are getting underpaid, especially in SoCal.

I don't see how $60K is worth the stress and hours you put in, but if you are learning things and enjoying what you are doing, maybe you can leverage it to another IB or even over to the buy side.

Are you getting good deal experience at least?

 

Your base is surprisingly low for being in SoCal. But then again...if you are getting good experience there, it's not as bad as it may seem since your hours don't seem that brutal and you can leverage that experience. Use it as a springboard to get something better if that's what you want.

No one can really tell you if it's worth it or not but yourself.

 

How friendly is the firm? Is it possible to ask for a raise? I don't expect you to be making six figures or anything, but I would imagine you should be at least around $75k. As others said, do you atleast enjoy it and more importantly are you learning a lot? If no, then I suggest you stick it out for a few more months to get a full year and then leverage it to move somewhere else. While $60k isn't terrible, I can understand where you are coming from especially given the hours you work.

Array
 

You are severely underpaid, and this is coming from someone who made more at a similar boutique in a far less expensive place with similar hours. The good news is that you've hit the 1 year threshold to lateral to a larger place. If you are aggressive with applications and networking and don't limit yourself to a specific location, I think you should be able to lateral within the next 9 months if you've got your valuation and accounting knowledge down.

 

Thanks for the responses everyone.

To answer your questions, I learned a lot in my first year, especially the ins and outs of an entire deal process, but right now I feel like the learning experience has somewhat flat lined. I realize it is up to me to determine what I should do, but I am just looking for guidance as I am really confused on whether I should stay at my current firm, try and move to another firm, or look for a career outside of i-banking.

 

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