Bonus/raise schedule if hired off-cycle

ws67's picture
Rank: Senior Monkey | banana points 77

If you receive an offer to join a firm in Jan/Feb as an analyst, therefore you join out of cycle (ie: not in the Summer), is a stipend bonus paid with the rest of the analyst class in July? Is a raise given after a year, or with the analyst class? Lastly, if you do get your bonus at a different time than your analyst class, how is the tier determined?

If anyone has any knowledge about what is typically done, that would be great.

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Comments (19)

Jan 6, 2010

I wish I knew the answer dude, but I always wondered the same thing, good question.

Jan 6, 2010

It depends a lot on the firm. If you're brought on in Jan/Feb instead of August/Sept, you're probably going to be included in the previous year's analyst class (so you would just get lumped in with the kids who started 4 months ago).

If you're at a really small firm, they may treat you differently, because they're not going to have a huge new analyst class coming in. At a larger firm, I sincerely doubt you'll get special treatment for starting in Jan/Feb. When it comes to August/Sept, you're going to be considered a 2nd year analyst just like everyone else.

Hope this helps.

Jan 6, 2010

I believe the situation is similar to lateral hires later on in your career and you will likely be paid at the same time, pro-rated

Jan 6, 2010

Most likely you will get a stub period and be considered a part of one of the analyst classes.

Jan 6, 2010

Depends on the firm, and in some cases the individual. The kids we hired off cycle at my old bank were all treated uniquely. Some got looped into a class if they were close enough. Others were put on a 2-year, off-cycle rotation, concluding their 2 years in January rather than July. Totally depends and all were privately negotiated. In some circumstances the laterals entered without even knowing what their status was, they just rolled with the punches and hoped for the best.

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Jan 6, 2010

Stub bonus, normal promotion cycle tends to be common. At my old firm and at a number of others, if they start you off cycle (jan/feb) as a first year, they will usually pay you a stub bonus in the summer with the rest of the first years. If you do training with the rest of the analyst class, then I wouldn't expect a raise ( I wouldn't anyways). You can expect a 2.5 year normal analyst program in this case. However, you should discuss this with HR upon receiving an offer.

If it's a lateral hire, then it will be completely negotiated and just about anything could happen.

Jan 6, 2010

From what I've heard (and this is what my firm does as well), off-cycle hires are grouped in with the appropriate class (generally 1st year) and receive a pro-rated bonus come the end of June. One thing that can be tough if you start in November or December is ranking and bonus tier, as you're starting 4-5 months after the other analysts which can generally suck (especially if you miss all the training, etc.).

Jan 7, 2010

Ok thanks for the comments.

For context sake I would technically be a "lateral" hire, moving from another firm (after 6 months). The MD seems to be flexible and has asked me what it would take to move me. Ideally, I would try to get a stub bonus plus a raise from first year salary of 70k to the second year salary with the rest of the analyst class. We are negotiating terms now, is this a reasonable request? I don't want to sound too needy when negotiating the offer since I am so early in my career. From what I see above, this stuff is negotiated individually. Am I going to appear too needy if I request a stub bonus in July and raise with the rest of the analyst class (if I am considered a part of that class)? I don't want to have to wait a year and a half (to next December) to receive my first bonus. I think my training will be all on the job since this year's analyst class has completed theirs. This is at a BB.

Jan 6, 2010

Well you should pound the table a bit and ask for such things in writing....maybe an guranteed minimum on the bonus as well (this can work in your favor and against you depending on performance). What is the worst someone can say to you? No...Just make sure you are tactful with how you go about asking for things and reasonable in your requests.. having a "heart-to-heart" with the MD might help as well..

Jan 7, 2010

I have the verbal offer and the written is being made now. They gave me the verbal after I informed them of an exploding offer at another firm. This firm is my first choice. Is this something I should bring up now, or after I receive the contract? I am concerned about negotiating before I have seen initial terms.

Jan 7, 2010

I just lateraled and went through a similar situation. The advice I got from the MD at the firm I left was not to negotiate prior to starting, accept what they were offering as long as it was comparable to street and that the bonus would come in time. He warned that negotiating at such an early stage in your career could leave people with a bad taste in their mouth for when you start.

I see where both sides are coming from and decided to air on the side of caution, I figured that the employer was the one with the leverage given the current hiring environment and as long as the base and signing bonus were fair, then I would be treated fairly come bonus time whether it be a stub bonus or a pro-rated one (which is what I expect). Just my 2c.

Jan 7, 2010

Not BB, but got stub bonus at my MM bank. I believe it was same as those in the class before me, just prorated.

Jan 7, 2010

bump. in a similar situation but with another bank in another city.

Jan 7, 2010

C does not.

"I just want to be a monkey of average intelligence who wears a suit. I'll go to business school!"

Jan 7, 2010
MarkyMarkWahlbergWasAwesome:

C does not.

Hi Mark,

Thanks for the help. Do you know this from experience?

Jan 7, 2010

Call HR ....

Jan 7, 2010