Hey y'all, was wondering if you could help me figure out what to expect for this upcoming year's stub associate bonus as I am very unaware of how this works. I am looking for guidance on total bonus expectation (any impact from recent pay bumps?) and also % cash vs. stock.
Separately, would the amount differ between MBA and A2A associates? Particularly interested in how this works at EBs. Any data points would be helpful as well.
Thanks in advance! (will drop SBs too!)
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Just ask an Aso1 colleague
Bump, curious as well as an A2A.
My firm (BB) gave out a $40k stub in 2020 and $35k in 2021….curious what will be given out in 2022
OP here - thanks for info. +1 SB!
I'm not doubting those figures, but would comment that they do seem quite low for what the stub bonus (theoretically) represents. I understand it is meant to compensate for July - December for A2As (6 months) or September - December (4 months) for MBAs.
If you do the math on $40k stub, that amounts to a pro-rated bonus of $80k for A2As and $120k for MBAs. For the A2As at least, that is lower than what you could reasonably expect as an analyst at some firms...
If you add in a 60k signing bonus, that’s 100k for that partial year of work. Not bad.
Reading your question in more detail, there is no differentiation between A2A and MBA associated for stubs. Every associate receives the same.
I theoretically agree with you. Would be awesome if the stub was actually a pro rated bonus for 6 months, but that’s usually not how the math shakes out unfortunately.
Last year as a stub I received $35K at a tier 2 BB as was paid in Q1 2021.
I polled my peers across the street earlier this year and the Associate Class of 2020 stub bonus at BB's ranged from $30-$45K at BB's. At EB it was up to $60K.
I expect the stub bonus to be on par, or possibly ~$5K higher to adjust for salary adjustments/the great year banks have had, but to be frank at the end of the day a stub associate is the low man on the totem pole (less effective than a first year analyst in many cases) and over the last 12 months you have already received a signing bonus of ~2X the stub bonus. You can't quit before the year mark without a penalty (having to pay back your signing bonus), so the bonus is a token of acknowledgement you exist
my BB (tier 2) gave us $35k last year. Tbh I expect this year to be the same (given they bumped salaries already) or maybe like $5k more. Given that probably didn't hit the desk until after a month or so of training and the signing and relocation and that you probably haven't worked on meaningful deals by then it's more than fair.
EB ~50k. All cash, not bucketed. That might seem low on a pro rated basis but a) you’re in training some of that time and even when you hit the desk aren’t carrying a full work load and b) you’re a negative value add while getting up to speed.
Not the case for A2As though. Seems like A2As get the short end of the stick here, especially if there is no differentiating (i.e., no bucketing).
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