EB offer start date before bonus

I'm a senior analyst at a boutique IB and have just received a senior analyst offer to join a top EB with a non-negotiable start date of 5th January.

At my current firm our bonuses are paid in January legit TWO f*cking weeks after the EB offer start date.

I want to accept but I don't want to have worked the past 12 months to miss out on my bonus by only 2 weeks which I expect to be around $100k.

I tried to push back the start date but they won't budge they said they need someone now as they're currently dying with so much work and the 5th January date is just to allow for our notice period.

At the same time I've been recruiting for the past 2 years to move to an EB and this has been the only offer I've received so I'm not confident I'd get another offer if I reject it.

I asked if they could pay out a sign-on bonus to make up for me losing my bonus but they said no and they have just paid their bonuses out so I'd have to wait the full year to get a bonus there.

Would appreciate any advice.

EDIT: one thing I forgot to mention is that although bonus is only two weeks after, pushing back the start date would mean a 6+ week push back due to my notice period i.e. I would have to resign after my bonus is received and my notice period would start then

Comments (23)

 
  • Investment Manager in HF - Other
Nov 20, 2020 - 2:45pm

Seems a bit crazy. Where do you ultimately want to end up? And is this comp tradeoff small enough where the longer term benefit makes sense?
 

Also, have you asked the new firm to cover your bonus? They should know that by leaving 2 weeks early you are leaving $100k on the table, I would expect them to do something about that if those two weeks are that important to them (and if so, how quickly do you think they'll be able to hire someone else?). 
 

Personally I wouldn't do it, but everyone has their own situation. Maybe if the opportunity was a huge change from where I currently am, but you should question a firm that won't do common sense things to work with you (over a reasonable amount of money) - that says a lot about the way they'll treat you. Every reputable firm I've worked with (or had friends work with) has been thoughtful in how to deal with potential lost compensation due to a move (large guarantee or signing bonus). These are more senior roles, but I would expect the same here. 

 
  • Analyst 3+ in IB - Ind
Nov 20, 2020 - 3:38pm

Thanks for the reply, ultimately I want to move buy-side so feel the EB will be better for me long-term.

I asked them about paying a sign-on bonus to make up for me missing out on my current firm's bonus but they said no.

They said it's important they get someone by then because they've currently got so many live deals on that the current analysts are working 18+ hour days including weekends and they've also been invited to pitch for a multi billion deal in January that none of the other analysts have the capacity for so need the support now and can't wait any longer otherwise they miss out on this pitch. They also said they interviewed other candidates at the same time as me so I need to let them know by Tuesday otherwise the offer will be given to the other candidate.

I really don't want to lose out on a $100k bonus even after tax it's literally enough to buy a Porsche (not that I would) but at the same time long-term I want to go buy-side and the EB will be better for me.

 
  • Investment Manager in HF - Other
Nov 20, 2020 - 4:05pm

If you want to go buy side why aren't you interviewing for those roles? If you are a senior analyst wouldn't it be the time to be doing that?

If this is a short term thing, and you think it significantly ups your odds at landing at the buy side firm you are interested in then it might be worth it. It is hard for me to know without knowing your situation (network, current firm, etc) 

As a longer term move I wouldn't go work for a place that is willing to have me walk away from my bonus without anything in return. Like I said, while I understand their situation (can find someone else, need someone now), it wouldn't be the culture I would want to be a part of. 
Unfortunately that's as helpful as I can be, it really becomes a tradeoff for you to consider (where will this lead, what are you giving up, how long will you be there, etc), but I would have thought you would be recruiting for buy side now.  

 
  • Analyst 1 in IB-M&A
Nov 20, 2020 - 4:07pm

Similar to the other commenter, everyone I know who has had situations like this with prestigious/reputable firms were able to get the firm to work with them, so it is a bit questionable, especially considering how the current analysts are being treated.

But at the end of the day, it seems like you already know the pros and cons, and you dont have much room to change the situation. Not sure exactly what advice you're looking for, but only you can be the judge on if it's worth it or not. Does your comp, excluding bonus you're losing, decrease at the EB? Also, how long are you planning to stay at the EB then? Personally, if I wanted to go buy-side, I would just go for buy-side positions directly instead of putting it off for a couple years, but we have different backgrounds/network so again, it is up to you to decide

 
  • Intern in IB-M&A
Nov 20, 2020 - 4:13pm

Skip. $100k is a lot and they are cheap for not respecting your bonus. You should be upfront about this and if they still don't bulge then it only shows that they don't respect you that much to begin with. 

 
Nov 20, 2020 - 4:26pm

Red flag.  Analysts are getting crushed 7 days a week, they need someone ASAP for a pitch, but aren't willing to budge on a bonus(meaning they just view you as a resource, nothing else)

 

Sounds like a garbage culture. Stay where you are at and recruit for  Bayside from there.

 

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  • Analyst 3+ in IB - Ind
Nov 20, 2020 - 5:32pm

Thanks for the reply, I do agree it sounds like a tough and intense culture but is the fact they need someone now and aren't willing to budge the case for every role? I.e. if they need someone now and have two equally capable candidates one is willing to join without a sign-on bonus and the one wants a sign-on bonus, it makes sense to higher the one that's cheaper? 

Especially when the sign-on bonus would have to come out of the team's own bonus allocation.

 
Nov 20, 2020 - 5:11pm

Dude just tell them to 1) make you whole on your bonus or 2) delay start date so you clip your bonus otherwise it's a no go. Assuming you have enough exp to find another similar opportunity a month from now, they're being cheap AND unreasonable

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  • Analyst 3+ in IB - Ind
Nov 20, 2020 - 5:29pm

Thanks for the comment. In your opinion, do you think even at the analyst level we have the bargaining power to be bought out of our bonus? Is it common practice to do so I didn't think banks would do it, maybe I should have been firmer when asking?

On your second point although my current firm's bonus is only a couple weeks after the start date, it would actually have to be 6-7 weeks push back due to my notice period that I would have to give after my bonus is received, i.e. if I give my notice period now there is no way my current firm will still give me a bonus. 

 
Nov 20, 2020 - 7:40pm

I'll play this game theory with you. They know that they hold the perceived bargaining chips which is why they are bullying you on all the details (no bonus, no flexibility, etc.).

IMO, they've decided you're the best candidate amongst people they've interviewed. They'd prefer you. Doubt they were super close with hiring someone else because how busy they are...they'd just give 2 offers. So not only do I think you have more leverage here than you think... You shouldn't compromise with how unreasonable they are being. It's totally fair to want to keep the $100k. There are other EBs you can keep interviewing for (a lot of hiring happens in the new year too). And all the while you can keep buyside interviewing. 

So if I were you, I'd tell them you need either the extension or a signing bonus and be 100% prepared to say no thanks if they don't budge. To what another poster has already said, if they are cranking on so many deals and need the help... the small amount of relative money they'd shell out for you shouldn't matter. Their statements about 18hr days and this complete inflexibility will be rough for you given the resentment you'll hold for having missed out on the bonus.

Two other points...

1) Think you mentioned 2 week notice concept? If you're leaving for another bank you'll have to quit and stop working same-day in most lateral bank moves.

2) Wouldn't surprise me given the specificity you've gone into that folks at the EB have seen this thread. Hope that doesn't negatively impact you.

 
  • Analyst 2 in IB-M&A
Nov 20, 2020 - 9:57pm

Don't do it man - 100k is a lot of money. Plus looks like you're going to get crushed anyways (which matters more than you think). 

 
Nov 21, 2020 - 8:30am
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