Hey everyone,
How similar do you think are both roles, as an analyst? Right now, it's my second week and already I feel like they are both very similar and almost the same at the Analyst level. I am still making board presentations and other PPTs, extensive modeling, other bitch work, etc. Only thing that is substantially different is working less hours and being able to work with the CFO and other execs. Maybe this is just at the analyst level, where some things will remain the same as an IBD analyst? What do you guys think? Thanks.
One big difference is execution experience. Corp Dev will give you maybe one deal per year, if that.
This. Plus, depending on the group, you may have to work on integration, which isn't something I'm into.
I am also looking at Corp Dev. Could you please share a little about your background (undergrad, GPA, target?) and current conditions (pay, hours, F100?)
Thanks
Also, the pay is a huge downer, particularly at the junior level. Your upside is very limited. Probably a comparable or even higher salary with bonus around 20-25%.
Suppose you're willing to trade back the better lifestyle for higher compensation, is it possible to go from Corp Dev back to IB (or, "to" IB, if you started out in Corp Dev)?
Yep, not hard to do at all.
I worked for a F50, I just left, and we did ~7-8 deals last year. Our bonus structure was almost entirely comprised of restricted stock (15-25%) with a meager cash bonus of ~5%. The vesting schedule was 5 years and with our turnover very few people actually saw any of that money. This was at the analyst and senior analyst level.
Even at a company of that size only a few people were actually running the deals from our side. A lot of people within the company were included for discussions, but they played very very minor roles. Most of corp dev's time was spent preparing and running integration models...huge PITA. The oustanding majority of the corp dev function was mostly an aggregation team that compiled all of our domestic and international financials and reported them to our CFO. My company did not hire undergrades into corp dev or FP&A. Almost everyone had IB or MBB experience.
That tends to be the case for the majority of corp dev groups.
Where are you headed to now? B-School? Also, the comp looks pretty bad. How much is total compensation after 2 years of IB analyst gig?
I moved into a research role for a large fund complex and probably looking at bschools for next year. Yeah, I really wasn't impressed with the comp picture for the analyst to senior director spectrum. VPs at my F50 made anywhere from 275-450 in base salary which is nothing to scoff at. The restricted stock bonuses were probably an additional 50%. Our company did not fuck around with making someone a VP. In terms of total comp I would imagine that most VPs are taking down 450-700 which is a really decent figure.
A lot of naive college students perusing this forum think that making the VP level at a F100 is a relatively easy career target to hit. Good luck... In my group there were 50 people under our VP gunning for his spot or two of the other VP finance slots in the entire company. I think a lot of people assume that investment banking VPs are fairly comparable to F100 VPs which is so far from the truth.
Two years out of IB you're looking at a base of 80-90K + 15K restricted stock and 5K cash bonus. If you stick around it's not a bad comp picture, but people rarely have enough tenure to cash in on the equity portion.
What kind of research?
kingtut, what industry are you in?
Retail
How much did you travel?
Did you see growth in the future, in terms of your career there, if you stayed (like moving to VP to junior exec, etc.)?
I was a senior analyst and never traveled. It was extremely rare for anyone in finance at the senior analyst level and below to travel. That being said, my boss was a senior manager and even he travled rather seldomly.
As I said earlier, making VP at my company was a very difficult path. There were ~200 people working in the various finance groups with only three finance VPs overseeing everyone and one SVP on top of the entire food chain. Based solely off of the numbers it's an uphill battle. Our VP was the smartest guy I have ever worked with. He was well beyond the genius level, but he still had a killer social skill set which made him deadly in the board room. Moving passed the VP level involves a lot of luck with timing. Generally speaking, a lot of our VPs got tapped to become CFOs or COOs of F1000 companies. There's almost no headroom once you hit the VP level. You really need the people above you to retire so you can take over their position. It's all based on politics too. If the CFO decides they don't like you then you are fucked plain and simple.
Our finance group was split into three smaller groups with each group having their own politics. Some groups wouldn't promote senior analysts to managers if they didn't have their MBA while others did not have bullshit policies like that. Our company tried very hard to keep talent from going elsewhere. If you were really good then you were put on the fast track. Here's a timeline for top talent coming in from IBD/MBB:
Senior Analyst - 1 Year Manager - 1.5 Years Senior Manager - 2 Years Director - 3 Years (I only knew of one guy that didn't have his MBA) Senior Director - 3+ Years (Entirely dependent on VP slots opening above you) VP - 5+ Years (There were only two higher roles: SVP & CFO. You could be a VP for 20+ years...)
It was possible to go from the director level to VP, but extremely rare.
A lot of people on this forum view corporate finance as the ugly red headed step child to IB/PE/HF/etc... where careers go to tread water. I think a lot of people underestimate the talent pool in corporate finance at F100s. Everyone, at least 95%, in my group was either ex-BB IBD or ex-MBB. You're competing with a lot of ridiculously talented people all jockeying for those few select spots. Don't expect to work in a F50 and be the sharpest tool in the shed. That's true for Corp Dev/FP&A, but definitely does not hold true for some of the support finance groups.
Wow. Thanks so much man! Did you know of anyone that got "tired" and went back to IBD or PE?
I knew one guy that went into an M&A product group at a mid-sized bank. I believe one person went to MM PE. A few senior analysts and managers went to M7 bschools. Our groups placed very well into bschools.
All of those guys were really on the younger end of the spectrum
I am a Chief in the US Navy with 12 years in, 9 of which has been in management positions. I am currentl working as a regional manager for Navy recruiting. I oversee all recruting operations for central NJ. I have my under grad in Business and am pursuing my MBA w/ a concentration in finance. I would love to get a job as a PE associate or CD. I have a meticlous attention to detail and I know how to rally a team....but I have zero experience in banking. Before I get out in 2 years, I need to know I can make 150k a year, in order to walk away? whats your thoughts? Do I have a chance?
Average person with a Master's degree in the US makes $67,600 and 5.3% of males make over 100K so kind of depends on you and not so much the degree.
@kingtut
Definitely agree with this statement, "I think a lot of people underestimate the talent pool in corporate finance at F100s." The last F500 I was at, Sr. Analysts in the group left for HBS, Wharton, Tuck, MIT, & Ross. Nothing to scoff at.
Corp Dev vs IBD (Originally Posted: 10/08/2014)
Would appreciate some advice regarding my situation.
I am currently a corp dev analyst at a Fortune Global 100 firm in an industry I'm not really interested in. The pay and the hours are ok and the firm and colleagues are great and I get along with them really well. Before entering this firm I was an IBD analyst for 2 years working on more interesting industries.
Now having been in this role for a few months I've been contacted by headhunters offering me quite attractive IBD opportunities. They are mainly attractive in terms of pay (over 2x) and a potential industry change. I am now struggling to make a choice between staying at my current firm or interviewing for IBD positions again.
My current corp dev team is made up of burnt out bankers and they are currently actively grooming me and giving me lots of opportunities for growth, learning and exposure, which I am extremely grateful for. However I would really prefer a higher paying job and don't mind the long hours too much at this stage of my career.
An alternative would be to stick it out for at least a year at my current firm and see how much of a raise / bonus I receive at the end of the year, then decide to stay or switch. This way I'll possibly preserve some goodwill and get to delay making a decision for now. However if I stay too long in corp dev and in this industry it will be harder for me to switch back to IBD / other industries in the future.
Any advice would be very much appreciated!
Well, that depends. Why did you leave IB in the first place? Do you think these new opportunities will somehow offer you a different set of circumstances? I would think about where I want to end up at this point and just carve the path that best takes me there. So far it doesn't look as if Industry interests you all that much-but maybe it's just the wrong industry? Banking will certainly re-expose you to different industries and pay well and you don't seem to mind long hours, so just my surface level impression is to at least consider jumping ship. You never know when you'll get these opportunities again. Ultimately you'll have to prioritize what's important to you.
Second this. The solution to your problem should be derived from the reasons you left IBD
Delaying the decision isn't going to help that much. Your pay will still be significantly better in IB, but your work life will be significantly better in the current role.
If you are on the younger side, I'd lean towards gaining the most transaction experience and if you dislike your current industry, it sounds like a move back to IB can open doors to a different one.
Or, go apply to other corp dev groups in different industries first. If that doesn't work, fall back on IB.
Well, the reason I switched from IBD to corp dev was because I quitted my IB job to move to another country, then started job hunting again. The corp dev job was the first offer I got.
So much CD work is tired into what industry you are in, if you don't like the industry then I'd bail. I love healthcare, couldn't imagine doing something like energy or retail (but others definitely do) which is why I'm happy to jump across CD roles.
Sounds like the IBD opportunity would give you that potential.
Actually I have the potential of jumping to another CD role in a different industry, since I have M&A experience in other industries. Issue is - other than the industry focus of my current firm, I really love the place and the people and get along with them fantastically well, and they are really training me and giving me growth opportunities. My friends said I'm in a really fortunate position and I have to be extremely lucky to find such a good work environment if I switch jobs. This is what's causing most of my dilemma...
I don't think you have provided enough information or maybe you held back. The only reason you offered for the change is to make more money today. If that is what you want, then you should go back to IB because corp dev is never going to offer the large bonus end of year.
Well, money is the majority of the reason. Industry change is part of the reason too, but industry change for me can be achieved through switching jobs to IB or CD in another industry, however salary raise is only going to happen by moving to IB, as we all know.
I just feel conflicted because some of my colleagues have been treating me so well for the past few months that I actually feel really happy going to work (despite the industry) - a thing I doubt will be easy to find in IB or even other jobs. This actually makes me feel bad for wanting to leave, especially after only a few months.
Career decision - IB vs Corp dev (Originally Posted: 12/27/2014)
Thanks all!
I'd stay on at BB as a new associate and take my time with the Corp Dev recruiting in the next couple years. Corporate America still heavily recruited at that level. Especially if you are in an industry coverage group.
Take your time and leave when you find a more attractive corp. dev. group. This is just the first of many.
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