BB SA Overtime Pay Confusion?
Hey monkeys, just curious about something that I noticed in a contract and was hoping that some of you could share your thoughts and experiences...
Recently accepted a SA position at a top BB. It seems as the pay is constantly fluctuating based on the hours you work. Since you are not a salaried employee, this makes logical sense, and if you're paid at the street entry level rate of $85k as all BBs do, assuming a 40 hr work week, your hourly rate would be 85000/52= 1632 and then /40 to get approximately $41 per hour.
The contract says that this will fluctuate based on the hours you work per week, giving the following formula: When you work over 40 hours a week, your overtime pay will be calculated by dividing the weekly rate by the total number of hours you worked in the week. Then, you multiply that rate of pay for the week by .5 overtime.
The following example illustrates it: If your salary is equivalent to $52,000.00 per year and you worked 50 hours in a given workweek, your regular hourly rate of pay for that workweek would be $20.00 per hour ($1,000.00 weekly rate / 50 hours of work). Your overtime compensation for that workweek would be $100.00 ($20.00 per hour * .5 overtime premium * 10 hours of overtime). Under this calculation method, your weekly overtime compensation will vary.
Is this the norm? I was a bit surprised as I've heard different stories from friends over the years according to how this works, and in all honesty, I'm surprised. I don't know if it's because I was given wrong information from others or whether or not I'm misunderstanding how this works, or whether this is just how this is. If you're considering this $41/hr rate your overtime should be close to $62/hr. With this, it looks like they are trying to dissuade people from pushing overtime, something that will certainly be impossible given the work, and will effectively drop your hourly pay lower to combat the spread. I did the math to see the 60-80-100 hour week numbers and it comes out being numbers that I never would have expected. Just worried about being dicked if it's supposed to be different, or whether or not this is just how it operates.
Just wanted to find out if this is how it's supposed to be, or if I was misunderstanding something. Thanks all..
My bad, you're right
I was giving background on the situation/language used. This does not sound like 1.5x overtime pay.
interested to know as well
Find anything?
I am going to be a summer analyst at I'm assuming the same BB as my offer letter sounds exactly the same. I reached out to someone I know and you make half your normal rate for the over time hours. So you'll make the $41 for the first 40 hours and then for anything over 40 you'll make approx. $20 for those hours. You'll still end up making more than most of your peers who simply make $85k prorated. Hope this helps!
I understand how it works here, yeah. I'm very grateful etc as I know many are not as fortunate, but was wondering if this is how it is in other places. At the end of the day spread across the total amount of hours it's still great, I just thought that overtime is 1.5x and that should make OT pay more.
I changed it slightly but could be! I did the math and that's exactly what it is, again just curious if this is the norm.
The next question is will you actually get paid the OT? My offer is similar at a top BB and I've read on this site that HR may not want you to log in all those OT hours, or they may ask you to check with your manager before logging OT. I highly doubt your manager would care as its not his money, but hopefully we actually get paid the OT $ that we're logging in. What division are you in btw.
IBD. Friend in S&T with same contract, all contracts are standard across the board for SA.
HR, your group, and your manager all understand that you're working real hours during SA.
Damn for SA for EB overtime pay is 1.5x ($62ish)
Yeah for FT EB will pay more than top BB all in because of the bonus pool as well.
Anyone else have info/thoughts on this?
I know some BB's do something called "diminishing overtime" where it starts off as 1.5x hourly and diminishes the more hours you work. If it means anything, I'm at a BB making ~$25 an hour with ~$38 overtime, so that kind of sucks. But isn't as bad as the salaried SA's.
Do you mean you'll be making that during SA or you're currently interning at a BB and that's what you experience?
I've seen friends do Big 4 internships and all come away with the same OT pay. This contract OT seems strange to me, but is it like this in other places too? At the end of the day if you're working 80 hours it looks like your hourly pay is just spread from 41 to ~25 or whatever to encompass the whole lot, vs. the obviously incremental increase you'd get if your 41 was 1.5x..
Sorry, this is for the coming summer. And you mean same OT pay as regular? Seems kind of strange, and honestly don't know how companies get away with that legally speaking. From what I know, JPM/BAML does 1.5x, C does something like >1.5x but diminishing by the hour (and is eventually capped somewhere around 80), and BCS does salaried. Wish I knew more on the subject as clearly there are some very different ways banks (BB's) do this.
Interned at a BB last summer. Was base pay per hour + 1.5x OT past 40 hours. They did say as a program they prefer we don't clock too many OT hours but at the end of the day your OT would be up to your ED / MD / team structure.
So this isn't across the board then. Looks like we'll be getting shafted on OT pay.
I wouldn't be too worried. Regardless of pay you are still in a good position. (Plus you can take solace in the fact that even if you are getting shafted its only for 10 weeks).
Your best bet would be to talk to your HR manager (don't sound ungrateful / bitter about it just ask for comp clarification because if it is worded in the contract similarly to how you worded it in your post I wouldn't blame anyone that asked for clarification).
I'd also reach out to peers or recent graduates from the SA stint you'll be at for their advice.
Congrats on your offer and remember its only 10 weeks, after that you'll be locked in with a salary regardless of working 60 hour weeks or 120 hour weeks.
Yeah I understand, definitely have that thought process as well. Just wanted to clarify. :)
I had understood you got paid 1.5x your regular hourly rate for every hour you go over the standard 40 per week. I think that's how it works. BTW, 85k base is pretty good. Most SA base pay before pro-rating is ~70k-76k.
Isn't the standard first year rate at BBs 85k across the board?
From what friends have shown me, it's more around 75k. I know Aladdin at BR pays ~96k which is insane but that's AM tech.
WIth OT you'll be making more in base than you will FT just putting it out there
Dolores magni rerum aut iusto saepe et. Facilis tempora sed vero accusantium facilis eveniet est. Natus amet ipsa eius.
Quia iure vel amet quibusdam reiciendis. Necessitatibus dolorem rerum qui enim voluptatum similique. Eos saepe illo molestiae blanditiis aut aliquam. Accusantium maxime quia tempora.
Voluptas accusantium dolore repellat id. Voluptates aut et est id deleniti ullam. Doloribus id ut consectetur et voluptatum. Aut quos dolores libero sit.
In est dicta id qui id. Eveniet temporibus cumque nihil dolor. Quae aperiam facere voluptatem voluptas quo consequatur nostrum. Aperiam quia a qui ea quia. Et ea est quibusdam dicta hic tempora sed.
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...
In et architecto iste deserunt eius voluptas enim blanditiis. Quis vitae iusto repudiandae aut temporibus est saepe.