Q&A: Former Analyst at Big 5 Canadian Bank

What group and what was your comp (in a 25k range)? What were the hours like?

Was in a relatively busy industry group.

Comp across the street is $80k + $5k-$15k signing + year-end bonus. Bonus varies quite a bit. My bank consistently paid $40k-$60k (combining both stubs) for first years but I know one bank that really screwed their analysts (as in close to $0).

Hours were pretty rough. Lots of pitching across the board when mining is weak but regardless a good experience. One thing to note about the Big 5 that doesn't apply to BB's here in Toronto, is as an analyst you're really expected to 'own' a model. You're doing all the numbers but also expected to think like an associate and are generally given a lot of responsibility from day one. This means workload can be pretty rough but the learning experience is fantastic.

One thing to note is that facetime is just part of the job but applies much more heavily in some groups than others.

Could you provide a list of all the target schools based on their representation in BIG 5 IBD FO roles? (Since alot of wierd info is provided by non candians in other threads about Canadian schools)

Is MSC Finance worth it from Canada or do you really need an MBA?

Lastly do foreigners stand a chance or is the work permit barrier too rough?

Thanks for doing this. I wanted to ask what you've decided to do after banking in Toronto? How are exit opps amongst your peers? Who are the best headhunters to get in touch with? Does networking with firms directly help much vs. using headhunters? (for example in NY it's all about HHs and networking only has some but limited benefits)

How well valued is a CFA in the Toronto banking scene? I've heard that it's more valuable in Canada than the US.

Also, I'm in audit at a major public accounting firm (passed the exams, waiting on experience requirement before I jump ship). I'm also partway through the CFA process having just passed L1 on my first try. Unfortunately I went to a different business school than the ones you mentioned earlier in the thread but still considered a good school. What approach should I take to getting into IB here in Toronto and when are the major hiring seasons?

Thanks!

What are U.S. exit opps like for analysts in top groups at the Big 5 (RBC M&A, BMO M&M, TD TMT, etc.)?

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Are most first-year analysts that you've seen recruited right of school or are there situations where candidates are a year or two out of undergrad and have been working in a related role that can make it in?

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Thanks for doing this! What did you average week look like in terms of #of hours? Do you have insight to associate average comps?

Appreciate the topic! Was wondering if you ever considered trying to lateral to a BB in Canada or an elite boutique or are Canadian banks dominant on Bay street?

For some reason I can't quote but will try answering here.

Lateraling: Not very common because as it applies anywhere, once you start you're in a two-year program. People that I know that have wanted to lateral though do so very easily.

Canadian banks run all of the deals except for a few megacap deals that happen once in a while that the BB's will hop on as well. In the recent Loblaw-Shoppers deal, BAML provided the financing and hence got the advisory credit.

Elite boutiques are almost non-existent except for Evercore and Greenhill. Evercore just started a couple of years ago I believe and run very lean.

Hours: Usually 80-90. Unfortunately facetime is common across the street. I had friends in mining groups across the street that were putting in 110-130 hours a week just pitching. I'd say the mining guys get fantastic learning experiences but awful work-life balance.

Associate Comp: High. I don't know the specific numbers but my second year associate would like to wave around his comp of 350k.

Moving into banking: I've seen people move from Big 4 quite frequently, but the downside of this is that you lose 2 years of experience and join as a second-year analyst, despite having spent 3 years out of school getting your CA. Also seen the move from corporate banking.

As for moving over from other jobs, I just haven't seen it. If you don't follow the standard path (top grades at Ivey, Queen's, Schulich McGill), you're going to have an uphill battle.

Exit opps: Top analysts exit to the PE arm of a pension fund (CPP, OTPP, Omers) or well-known independent (Birch Hill, Alignvest).

Everyone I know that has left to a pension fund has loved it. You take a hit in comp (you'll make up to $200k all-in as a first-year associate) but there is zero facetime, you coordinate directly with CFO's, play a role in portfolio management, and are out by 9pm unless there's a live deal.

With that being said, it's much more stressful than banking, because during a live deal you work just as long as a first-year analyst, and instead of being an excel monkey you're expected to know every detail of a transaction. Still though, it's well worth it and a huge step-up from banking.

That seems like a big jump in associate pay. You mentioned that a first year associate can make up to $200k, but in a prior post you said that your second year associate made 350k?

It's been a full year since I've been on here...feel free to ask away if you have any questions

Bonuses at my former BIg 5 just got paid out, everyone did exceptionally well despite lower than normal deal activity.

Getting a second year SA role is definitely tough but I went through the process in my second year and amongst the banks, CIBC, BMO and NBF were the most open to second year summers. Scotia will occasionally interview a second year but (as expected) prefers third years. TD has historically only offered second year spots (in IB) to relationship hires but recently hired a second year for a co-op term and that worked well so they may be open to second year summers this year.

I certainly wouldn't limit your options to big 5 in second year. Lots of second years (including AEOs) land CPP, OTPP, or a range of other boutique PE / IB shops. I believe there is a PE shop named Auxo management which has historically offered AEOs spots. Maybe check that out.

If you do get an interview at a big 5, make sure you are confidently able to walk through why you want to do banking in Toronto at a big 5 and why you are 100% sure that you will accept an offer the following summer vs. shop it around. CIBC in particular grilled me on this point.

Feel free to PM me for more detail.

Hey, thanks for doing this. What sector is each Big 5 strong for (especially in Toronto).

How is BB experience in a large financial centre such as NYC or London viewed? Have you seen people lateraling to Toronto after an analyst stint abroad?

Would following M&I's interview prep be good for Toronto recruiting (summer analyst), or are there our things we should focus on (or alternatively, pay less attention to)? Thanks.

Are you able to provide a all-in payscale for the VP and Director levels ?