Centerview $200K Retention Bonuses?!

Apparently Centerview is giving $200k retention bonuses to new Associates (via Litquidity). Not surprising given its Centerview, but still crazy given their pay is already #1. Are current associates or analysts getting anything? 
 

Would be surprised if EVR/PJT don't follow suit now...

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Comments (81)

  • Analyst 2 in IB - Ind
Jun 2, 2021 - 5:43pm

jesus. Very hard to justify taking LMM PE or anything other than MF/HF unless it's an exit for 'lifestyle' reasons. Anyone know if this is true?

  • Analyst 1 in IB-M&A
Jun 2, 2021 - 7:52pm

This is also for current analysts going A2A? 

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  • Business School in IB - Ind
Jun 2, 2021 - 6:36pm

Wondering if other EBs will try and follow with either a permanent salary increase or one time bonus. I feel like if other banks have already raised base salaries the most efficient thing to do would be to raise salaries instead of a spot bonus but what do I know. Doesn't matter for CVP as they are already #1 in comp as you mentioned. 

Most Helpful
  • Intern in IB - Gen
Jun 2, 2021 - 6:39pm

My God it's in all-cash too and they had no incentive to really do this already. Why would anyone want to exit out of there, CVP is the exit opp lmao. These guys the only thing that give me hope for this industry, after seeing the shitshow the past year

Funniest
  • Associate 2 in IB-M&A
Jun 2, 2021 - 7:28pm

LOLOLOL, work at EVR and was seriously pissed at management saying they wouldn't match comp increases / retention bonuses from BofA and CS because we index ourselves to CVP/GS/MS. Now they gotta index against a $200k all cash bonus

  • Analyst 1 in PE - Other
Jun 2, 2021 - 10:26pm

People were taking GS / MS over CVP before this? An AN1 at CVP makes $100k more than an AN1 at GS pre-tax...

  • Analyst 2 in IB - Gen
Jun 7, 2021 - 8:56am

This is currently just for US offices but they are working on a similar program for the international offices. 
 

Yes, they've taken a lateral from FTI. 

  • Prospect in IB-M&A
Jun 9, 2021 - 10:28pm

Can MBB/tier 2 consultants move laterally to CVP? And do you know base/bonus for analyst/associates in European offices? Is it in line with US office? 

  • Analyst 2 in IB - Ind
Jun 3, 2021 - 4:42pm

That first grouping used to include Centerview, and now with their move the others should have already followed.

  • Intern in IB - Gen
Jun 3, 2021 - 10:36pm

I don't think they have a rougher culture than any other EB honestly. If anything, it's better than Moelis and probably some others at least in terms of "lifestyle." I guess the catch is that it's really really tough to get a spot at Centerview versus anywhere else in banking. I think if you network, come from a target, and are a decent interviewer you have a very good shot at any shop, but I've heard CVP is a bit different in that their interviews are very rigorous and outside of the box unlike anywhere else in banking.

  • Analyst 2 in IB - Gen
Jun 4, 2021 - 1:42am

Analyst at CVP now. There isn't really a catch. They say they their goal is to attract, train and retain the best talent in the industry and quite literally put their money where their mouths are. Obviously people will leave for the buy side, and partners are fine / supportive but want to make 100% certain that they're doing it for the right reasons vs. the wrong ones (i.e. not financial reasons)

Culture is actually pretty good. Seniors are generally understanding and don't create extra work, staffing program is designed to give you the experience you want and people respect your free time when you have it. We work hard but so does everyone in banking.

Even though the timing corresponded with the slew of spot bonuses / salary increases at other banks driven by covid related turnover, this was messaged pretty differently and was made to address the A2A retention issue as opposed to the recent premature departures among the junior ranks (since we admittedly haven't had significant attrition beyond the normal levels). 

Jun 4, 2021 - 2:29am

Pretty good and meaningful point in your last sentence first para.

Lots of people leave for PE mainly under the pretenses they will get rich quick and are generally quickly sobered to reality unless they are going to a MF/UMM. Incentivizing people with comp could actually help them reevaluate why they want to go to the buyside and potentially stick around in banking, though I could also argue why stick with the money-chasing guy who is only following dollars instead of what he/she actually wants to do?

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  • VP in IB - Ind
Jun 4, 2021 - 11:36am

The $200K sounds great but EOD Associate recruiting market is super tight right now. CenterView senior management knows if they can do one deal with $10-15mm in fees, it'll pay back for all these guys 5x over. Much easier to keep A2A vs trying to go recruit new guys who are likely not going to pan out and deal volume is very high right now to make a whole bunch of money. Tbh those who take it are giving up long term much higher upside in PE/HF while MDs make the fee. Nobody going to retire with Associate / Principal money 

Jun 4, 2021 - 8:41pm

You make it sound as though the long-term higher upside at a PE/HF is a sure thing vs taking the guaranteed $$$ you would get by staying at CVP. Not to mention the advantage of having already built, what I would assume to be, strong rapport within your group at CVP.

Jun 6, 2021 - 7:46am

Exactly. Not even MF PE will pay that much cash as a 1st yr associate. Most exits won't be MF PE or MM HFs either so you're already dealing with a lower baseline off the bat. If you're not super into the investing game and are in it for the comp, then staying in something like the CV role is arguably much better, especially for the risk-averse folks (which is more of the population than care to admit it)

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  • Analyst 2 in IB-M&A
Jun 6, 2021 - 10:18pm

This was a one-off bonus - only for this year - for internal A2As only with a clawback condition to stay for 3 years. Don't expect other banks to match this. Basically they are paying 2021 A2As 3 years worth of associate sign-on bonuses. Company P&L wise, no different

Controversial
  • Analyst 2 in IB - Gen
Jun 6, 2021 - 10:37pm

This is false - this is the go-forward A2A signing bonus program for all US Centerview analyst promotes, not a one-off for the class of 2021. 2 year clawback. 

Agree on other banks not matching this.

source: I was on the announcement call 

  • Analyst 1 in IB - Ind
Jun 6, 2021 - 10:36pm

This was a one-time bonus only for A2As with of course clawback conditions There aren't that many 3rd year analysts still hanging around anyway so very few who are even eligible. Doubt that any other bank would match it.

source: I work at CVP Palo Alto

  • Prospect in PE - LBOs
Jun 7, 2021 - 9:11am

I don't think this bonus changes anything. It may make the marginal Analyst that might be exiting to a small PE / HF stay, but if you get an offer from MF PE or some tiger cub, you are leaving without a doubt.

  • Analyst 2 in IB - Ind
Jun 9, 2021 - 9:57am

yeah but very few Centerview analysts are leaving for anything other than MF PE or top HF's. I really think this is them attempting to compete with MF PE on total comp

  • Associate 1 in CorpDev
Jun 9, 2021 - 12:04pm

How would this impact Post-MBA associates, if in any way? Must be brutal to have 1) just paid b-school fees and then 2) see A2As have 200k+ on you lol. On that note, does CVP even do a lot of MBA recruiting? I'm sure folks go from HSW. 

  • Intern in IB - Ind
Jun 9, 2021 - 6:34pm

CV hardly recruits at MBA level-typically diversity candidates at mostly Wharton. I'll avoid specifics but the signing bonus is similarly insane compared to peers for their small class

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