Compensation: analyst bonuses at Goldman
How does compensation compare at Citigroup versus Goldman for analysts and associates? What about at the VP level? Are analyst bonuses at Goldman set by division or can an analyst be paid whatever an MD deems she's worth?
I heard that analysts are underpaid at Goldman because of the name.
The compensation difference would mostly amount to performance anyway, and even then, I don't think you'll find more than a 5,000-10,000 dollar difference AT MOST. Really, to an iBanker, that's peanuts. Even to me..
Rough overview: most (all?) analysts are in a two-year program with set salary and variable bonus. Your bonus in year 1 is generally a stub: as you've not gone through the annual review, you aren't sorted & bucketed in the same fashion; it's also prorated. Your next year, you salary will increase by a set amount. Say, 76k to 81k (made-up numbers). However, your Per-Annum Total Compensation is not decided until the next comp season, a full year out. Driving your PATC are four factors: Firm Performance, Division Performance, Your Performance, and Peer Comp (i.e. how much other firms pay for your role). Thus, in a down year, you can be a top performer but still make less than last year, especially at the VP+ level where comp is highly variable (analysts generally are more stable). Now, note that your MD only as control over how s/he rates your performance--the firm & division performance are set, as is the peer comp.
Your MD is also just one part of the process. The general comp package for a desk/team also goes through review by the MD's superiors, as well as HCM...and that process goes back and forth 3-4 times in some cases.
Overall, there's a very fixed process...since GS tends to not like discrimination lawsuits, which MD favoritism can (inadvertently) fuel.
The comp levels are coming down because of title inflation. Given GS / JPM want to promote people to VP level after 4 years, that means the new streetwide VP pay will vary meaningfully given it could be 4 vs 6 years of experience. The rest of the street will use it as an excuse to just lower comp for their VPs so they can seem competitive I think
Yep, thank for adding that--also note that the BBs (GS especially) are moving people out of NYC if they don't have to be there since cost of living (and pay) are lower elsewhere. Mostly affects BO/MO, but I know they've opened IBD offices in Salt Lake
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