Comments (30)

 
Dec 16, 2008 - 1:30am

If they really do change to a stub bonus does that mean analyst who do a two year stint will only get a bonus for 1.5 years or will bonuses be paid every 6 months to analysts

 
Dec 16, 2008 - 2:50am

stevenbn:
If they really do change to a stub bonus does that mean analyst who do a two year stint will only get a bonus for 1.5 years or will bonuses be paid every 6 months to analysts

I think this would be a dumb move in my opinion -- I could see many analysts taking an "extended vacation" after their 2nd year bonus in December or quitting earlier without the draw of a big bonus in the summer to keep them around.

 
Dec 16, 2008 - 4:19am

aloki:
No, they will be paid at year end. So if you leave in July like most analysts do, you're screwed.

...right, so either the analyst stays an extra 6 months so they work 2.5yrs to get bonus #3 (1 stub, 2 full) or (in my opinion a just as likely scenario) is that they leave after their first full year bonus. ie after 1.5yrs.

 
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Dec 16, 2008 - 6:21am

I could see them leaving after 1.5 years, but doesn't their contract end in July/August of year 2? Wouldn't they have to receive and accept a 3rd year offer?

 
Dec 16, 2008 - 8:55am

Guys, this isn't that hard to figure out. The rest of the bank is already paid this way, so the analysts will just adhere to the same timing as everyone else has been doing for decades.

 
Dec 16, 2008 - 11:13am

skins1:
Guys, this isn't that hard to figure out. The rest of the bank is already paid this way, so the analysts will just adhere to the same timing as everyone else has been doing for decades.

The rest of the bank is already paid this way, because they are not on a two year contract like IBD but sign up to work indefinitely. So this is a legitimate question, and unless analysts get some kind of stub bonus after they leave in the summer, then it seems like they are getting screwed.

 
Dec 16, 2008 - 2:57pm

What I mean is look at the banks like Barclays and Merrill that put analysts on this schedule awhile back. In those cases the analysts don't sign on for a specific time frame, but in the end the time frame ends up being pretty much the same as it is at the banks where they do sign contracts....

But fair point...

 
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Dec 16, 2008 - 7:43pm

skins1:
What I mean is look at the banks like Barclays and Merrill that put analysts on this schedule awhile back. In those cases the analysts don't sign on for a specific time frame, but in the end the time frame ends up being pretty much the same as it is at the banks where they do sign contracts....

But fair point...

As far as I know, Merrill is not and has not been on that schedule. I know Barclays gives stubs, but my contract for Merrill specifically stated a 2 year commitment, with bonuses paid in July.

 
Dec 16, 2008 - 4:10pm

Pays analysts year end. but the actual payment comes in Feb end . so to Patrick's point, you will have to atleast stick to Feb, probably till March (before it hits the bank) and not just peace out in Dec. Even associates at most BB's, who get their bonuses paid year end have to wait till Feb / March for it to hit the bank as far as I know (correct me if I'm wrong)

 
Dec 17, 2008 - 11:15am

I may be wrong here. I have never worked at Merrill, but I just remember an analyst on my desk last year (S&T) told me that Merrill was paying analysts stubs....

But again, I may be entirely wrong here....

 
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Dec 17, 2008 - 12:09pm

skins1:
I may be wrong here. I have never worked at Merrill, but I just remember an analyst on my desk last year (S&T) told me that Merrill was paying analysts stubs....

But again, I may be entirely wrong here....

I don't think that they would have different payout structures for S&T and IB but I know for a fact that in IB the first year analysts received their bonuses in July. I honestly have no idea how they did it in S&T. That could be true.

 
Dec 17, 2008 - 11:56am

It's very simple to calculate..what's 50% of 0?

Just kidding..I would assume anywhere between the range of 5 and 15K.

Assuming 30K is top bucket for every other analyst on the street by this summer.

Bonuses on a per employee average are down 50%. So that may mean analysts still get something.


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Dec 17, 2008 - 11:38pm

bearing:
I know for a fact that Merrill ER, S&T, and AM pays stub bonuses. IB is the only on that doesn't for their analysts stubs.

As I mentioned in another post, these three positions that you listed above do not require you to leave after two years, but you can work there indefinitely. So, it does not make sense to pay them bonuses in July; that's why they get stub bonuses after 6 months.

The question here is about IBD bonuses. If they are getting stub bonuses, then does this mean they they will only receive 1.5 years worth of bonuses for two years of work?

 
Dec 19, 2008 - 8:31am

@bkm125 -- are you sure about those numbers? $30,000 for an analyst stub bonus would be the same level as last year.

Last year associate stubs were $45,000, so analyst stubs came in below that, probably $25-30,000. So to get that this year would mean no decrease in pay.....I don't buy it....

 
Dec 19, 2008 - 8:43am
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