EXCITING EQUITY RESEARCH OFFER - NEED ADVISE FOR ACCEPTANCE

Need some advise in evaluating an offer.
I am a finance pro with a BS (Tech) and MS (Business). I have approx 2 years experience at E&Y in their advisory business for tech companies (my current base is 95K) and before that I have a couple of internships at tech companies (like Accenture). I have been extended an offer by Deutsche Bank in their Technology Equity Research group as an Associate with a Base of 110K and yearly discretionary bonus which they wont quote in terms of % or $. My job from E&Y was no bonus.
How do you rate the offer? Given I am moving to banking I am excited about the offer & feel its a much stronger career path versus my regular (not so growth oriented) position at E&Y. I just need feedback to evaluate this offer and know more as to what I am getting into.
Appreciate your advise in advance.

Comments (28)

May 1, 2010

Requesting comments & feedback from fellow forum members. Thanks

Greed is Good!

May 1, 2010

Take the offer.

May 1, 2010

Thank you so much for the quick response. Do you think the base is within acceptance levels? Someone I spoke to suggested that it should have been around 10K-15K more (i.e. around 120K-125K)
Also the HR lady wont give me any guidance on the bonus and would simply repeat the fact that its discretionary based on a scorecard of company, group, and personal performance. She told me % or $ levels are not quoted. All she said was that it will be much higher than my current job which doesn't make much sense because my current job has literally no bonus comp except the rare 1K-2K which might come our way.
Thanks in advance for your time on this!

Greed is Good!

May 1, 2010

i think it's a great opportunity for you. you will gain another side of research on the technology industry, since you have done advisory for E&Y. You will most likely be more macro-focused and understand the technology industry alot better.

Get paid more too. You don't have to pull all nighters!

May 1, 2010

Thank you so much for the quick response. Do you think the base is within acceptance levels? Someone I spoke to suggested that it should have been around 10K-15K more (i.e. around 120K-125K)
Also the HR lady wont give me any guidance on the bonus and would simply repeat the fact that its discretionary based on a scorecard of company, group, and personal performance. She told me % or $ levels are not quoted. All she said was that it will be much higher than my current job which doesn't make much sense because my current job has literally no bonus comp except the rare 1K-2K which might come our way.
Thanks in advance for your time on this!

Greed is Good!

May 1, 2010

about what exactly? congrats on the offer. If you want it take it, if not then dont.

May 1, 2010

I would take it as it get you in the feild . if you just looking for money then think really hard where you can get more , go to salary.com and see the stats I think its a good offer from where you and and a great offer if you want to be in the equity research feild

May 1, 2010

Take the God damn offer. I'd give a guy a HJ to be in your position. ER positions (especially at a BB) are hard to come by and 110K seems to be close to market for an associate from what I've read. Once you kick behind as an associate for a couple years, then you can become more picky as far as what you want in terms of salary.

May 1, 2010

It's a great opportunity. In regard to the salary negotiation, could you possibly contact some of the associates you interviewed with and ask them if it's a reasonable offer?

May 1, 2010

Thanks all for the feedback. The team is a very compact one & its primarily 1 MD (senior analyst), 1 very senior associate, 1 mid level associate, and 1 junior analyst. I will be the final associate added to the team. I doubt that asking the other guys for advise will be a good approach. Also, I have been interviewing for a while and this is the only BB offer that has come my way given the market & my non-banking background.

I was told by someone that at my level BB's pretty much have a plain vanilla approach to rewarding offers and there is not much room for negotiation since the offer takes into account the general range. Do you agree?

It seems like everyone who has replied to my post considers the salary to be an appropriate (if not super duper high) level. I am worried about the bonus. With the offer stating no confirmed/guaranteed bonus should I be worried about the risk of being underpaid or paid very less because of "being the non banking guy who anyways never got paid much bonus ever"? or should I trust my MD & the bank culture with rewarding me at par with the other guys in the bank?

Greed is Good!

May 1, 2010

Forget about the bonus. No one knows what next year's bonus will look like - hell, the whole industry may change. You're still going to make more money than you did at EY.

May 1, 2010

The salary is appropriate, you're not going to get a guaranteed bonus anywhere you go at your level/background. It's probably the best offer you'll get, and holding out for an extra 10k is stupid.

May 1, 2010

take it. you will not get any clarity on your bonus as a jr guy w/ 0 experience. pushing them on this one is a great way to loss your offer

May 1, 2010

I have gotten some really valuable advise here. Thanks to all!

Turns out that I had an email from HR (which I never checked) that the relocation assistance that was mentioned in my offer letter is worth 8K. I just hope its 8K of cash and not some daft storage/apartment-hunt, etc service worth 8K.

I guess with the 8K its a 110% yes and without it based on the feedback from some real experienced people here its still something I shouldn't let go of!

Greed is Good!

May 1, 2010

sounds like you are making a good choice.

if you work your ass off, play well with others, and add value you should be happy w/ your bonus. if you are not happy w/ comp that's fine. you have gotten into the biz and can make moves where appropriate.

congrats

May 1, 2010

anyone know where research bonuses have been at the jr levels past couple of years. heard 25k for stub bonus last year at the bigger places.

May 4, 2010

Hi Everyone,

Glad to inform you all that I accepted the offer! However, I need advise on two perplexing issues (which have come to haunt me after speaking with a recruiter at UBS for a similar role) -

Do you think Deutsche should have paid me a SIGN ON bonus for this role? I was told by the UBS recruiter that they would have paid atleast 20K-30K for the position.

Also, since the bonus was quoted as "discretionary" with no number ($ or %) guidance - what can I expect in terms of year end bonus in this role?

You all have been awesome & really helpful so your guidance on the above will be deeply appreciated.

Thanks

Greed is Good!

May 16, 2010

work at a BB in ER

last year's numbers as i understand

1st year analyst - 50
2nd year analyst - 75-85
3rd year analyst - 95-100
1st year associate - 110-130

also another BB in ER

1st year analyst - 30-70
2nd year analyst - 70-90

if I had to guess, at 110K base, i think fair expectations would be in the 70-130 range

May 16, 2010

Daxcac,

Thank you for the guidance - the bonus numbers look pretty solid!

Just to be sure we are talking about the same positions (and since there are different designations in ER), when you say 1st yr Analyst you mean someone in ER right after undergrad correct? Similarly - 2nd yr Analyst will be 2 years after undergrad .... and 1st yr Associate will be post MBA or equivalent work ex?

Please clarify.

Thanks

Greed is Good!

May 16, 2010

how do these numbers compare with IB at the analyst (ie out of undergrad/pre mba) level. they look about on par from what i hear.

May 16, 2010

draxcac, those numbers are hard dollar figures right?

May 17, 2010

@bankster2010

correct - keep in mind that last year was also somewhat of a "making up for 2008" year

so as long as the market doesn't tank this summer, is it fair to expect something near the same range +/- 10K, maybe and we all hope...

@eresearcher

yes - hard dollar

keep in mind that at the junior levels, IBD and ER pay are roughly equal (IBD maybe slightly more) - some would argue that on a per hour basis, ER is better, but it also comes down to exit options as well

with IBD --> PE, VC, industry
with ER --> hedge fund, long only shop, industry

as you move up, from what I have seen, the spread between the two begin to widen (with IB making more), unless you are on a fast track to picking up coverage, which is rare, but it does happen

May 25, 2010

Hi. I was wondering if it's possible for associates to move between ER and IBD roles within the first three years. For example, suppose one got an offer in ER in a BB bank but was later interested in working in IBD in the same vertical, either at the same or a different bank. (Let's assume there were originally no openings in IBD.) Is that possible or is that generally frowned upon?

May 26, 2010

I am pretty sure its not frowned upon! In my best opinion (based on how I have seen the interview/hiring process) - the ease of moving to specific roles in BB's is as follows (RANKED) -

1) Moving from BB X (ER, S&T, IB, IB Credit, etc i.e. any money making/front office) to BB Y (any front)
2) Moving from BB X (money making/front office) to BB X (any front)
3) Moving from BB X (operations, etc i.e. back office) to BB X (front office)
4) Moving from BB X (back office) to BB Y (front office)
5) Moving from non-BB to BB back office
6) Moving from non-BB to BB front office

The ranking remains the same but the ease of making a transition is completely dependent on a mix of the following factors - market condition in general (are BB's hiring well?), your unique abilities/skills, and ability to fetch a good reference!

(note 1 & 2 where I emphasize that its easier to move outside than within)

everyone agrees?

Greed is Good!

May 26, 2010

I disagree with your #6. I think you can definitely lateral to a BB from a non BB much easier than #s 3, 4, and 5.

May 26, 2010

I agree with your partially! To clarify please read non BB as "non money making business"

Greed is Good!

May 26, 2010
Comment

Greed is Good!

May 26, 2010