How Did Covid Affect Your Bonus?
Wanted to start a thread to see how everyone else's firm is reacting to Covid and how it has affected your bonus, Has your bonus been unaffected relative to previous years, or have you seen a significant decrease? My MM firm is down about $10-$15k at AN level yet hours have been just as bad, if not worse.
Curious to hear what others have said. Friends at my previous bank are echoing the same sentiment of being ~$15K down from last year's comparable bonuses at each bucket. Heavy Lev Fin shop so may differ from M&A boutiques.
Big 4 consulting bonus completely off the table after 2 weeks of the pandemic. Also any agile promotions withheld. End of FY promotions possibly getting delayed as well ;)
wow that is rough - whats morale like there?
Lets just say I did the calculations if we don't return to on-site client travel and, tax-free, all travel perks included, I am losing $39k+ -$42k+ (assuming some travel with personal vehicle reimbursement).
Not including the expected bonus, so probably $50-$55k total I lost this year.
Morale is shit, lots of people on the Advisory side within my age bracket (early to mid 20s) that I talk to are starting to look towards side hustles or are flight risks.
Can confirm, all Big 4 offices in my region declared that no bonuses would be paid for FY20 only 2-3 weeks into confinement. They also laid off about 5% of the Financial Advisory staff within the first month. There were subsequent, smaller waves of layoffs. Promotions are also delayed at most big 4s, and year-end pay increases are off the table.
Funny story: 3 weeks into COVID, firm asked all employees to volunteer for a 20% pay reduction in order to help the firm and prevent any COVID-related layoffs. The participation rate in this program was much higher than anticipated, and the Firm's management seemed glad. A week later, they announced they would be laying off 5 to 10% of advisory staff anyway.
Morale is down the gutter. Most of my friends in Big 4 advisory are currently seeking to exit.
big 4 firms are the worst. I hope they all go bankrupt.
Providing yet another data point here. Down $15k across the board across all buckets compared to last year.
what type of firm - BB / EB / MM?
Not IB, Distressed PE/PD here, bonuses are off the table completely.
But vertical movement is definitely possible since lots of mid-level people are leaving. So somewhat okay if the junior guys are promoted since our bonuses probably equal the pay raise to AVP/VP level
Interesting that PE bonuses would be affected. Bonuses are paid out of management fees, which won't have changed... Unless there is risk you don't raise another fund I guess.
Yes, our latest fundraise got cancelled. Plus we're a small fund (200MM) and we have a couple covenants that prevents bonuses to be given out to anyone below the Partner if we broke certain prerequisite.
Consulting bonuses are a joke as is, but COVID-19 slowed business so they will be affected too. In previous years my firm paid out 10-15% of base and I don't see this year going beyond 5-10%.
Not if it's restructuring related, which have massive bonuses that rival IB
Not RX, I mean typical Strategy
Antares Capital had a 40 person layoff of all front office deal teams so I am assuming their bonuses are off the table.
that's bad
There are some articles online discussing it and they quote a 10% workforce reduction. In reality, I have heard from friends that there were ~165 front office heads so it was a huge layoff. Think it happened last Wednesday. Who knows if you start seeing other large layoffs in the financial services industry come January 2021.
European bank in Europe. Higher ups basically said that there will be little to no bonus at all for this year, and that we should look forward to, and renew the pipeline for, 2021/22.
Gonna be some personnel cuts across the whole bank, but IBD sounds like it’s gonna be spared, and that we might poach some disgruntled talent from competitors.
In summary; job is feeling pretty safe, but not expecting any bonus.
Not BB right?
Sounds like HSBC
What do you think the landscape will look for those in s&t?
What a stupid question. If you think S&T is dying, I ask you to meet with senior people in the industry.
Work at more of a capital markets focused shop and bonuses were actually flat for analysts. Spoke with an analyst the year above me who got the same rating I did and confirmed that it was the same as last year
Any info on EBs with a strong RX presence? Like EVR/MOE/HL/Laz?
Not sure about when the timing is for everyone but one of those shops only announces after their earnings release. Only EVR (today) has released earnings so I expect no numbers until 2 weeks from now
I realize it sucks working the same if not more hours and having a bonus get eliminated or reduced. Really though its just the nature of the beast. If you're going to be in finance for the long haul, you'll realize there are going to be good and bad years. Nothing is a given, most certainly bonuses. Easier said than done of course, but should all be thankful that the fed saved the market and thus finance jobs/bonuses. Could be a lot worse at the moment. Does this change anything in regards to being bummed out, no it blows no matter what, just providing some perspective as someone that has been through a couple cycles now.
Side note - in regards to why a PE bonus would be down despite AUM flat - its a function of both 1) they can pay lower because market has now legged down - bonuses are much more market driven than a reward for hard work/distribution of the honey pot, and 2) saving more for a rainy day just in case the fund needs the cash at some point.
While yes it is possible that the PE firm is saving money for a rainy day, this is unlikely. The management company needs to pay tax on its income, so often times any excess profit is just dividend out to the partnership at the end of each year (many PE firms will have a profit share plan that accomplishes this). Note that the "fund" and the "management company" are two separate entities and you cannot just pass cash around between them.
Yes, great points. Ultimately large funds with more than enough revenues/profits to go around purely based on mgmt fees might choose to pay lower bonuses to more jr people simply bc the market bears it. However, these are two great call outs on revenue streams that disappear even on flat aum. Its kinda a joke these these fees are even allowed by LPs as its the entire point of a mgmt fee but that's an entire separate matter.
Deutsche Bank is actually making people pay-in to stay employed during bonus season.
Username checks out
MM here. Down about 10-15 percent compared to last year (which was also a shitty year). Morale is pretty low as we are working more hours as well.
Down 10-15% compared to last year meaning the bonus you yourself got last year or what someone else would've gotten last year?
I.e. is an AN2 earning 10-15% less than AN2 last year, or earning 10-15% less than AN1 last year?
AN2 earning 10-15 less than AN2 last year.
How much higher is AN2 bonus vs. AN1? typically
All in normalized environments (no COVID) for top bucket. Might be higher at an EB.
AN1: $40 - $70
AN2: $55 - $90
Cantor announced delayed start dates for incoming junior class earlier this week if that's any indication of what they'll pay bonus wise to existing juniors
yikes
a hit of $15k is peanuts, I think a lot of folks will wind up lucky to keep their jobs and if they do might see 25%-50% drops from last year.
I expected my bonus to be keeping my job, but I'm fortunate my shop is having a record year and my portfolio is on pace for an identical outcome as last year which was also a record.
Still 5 months left, I completely understand I may lose it all. And am just happy to be going along. I don't stress, I expect nothing. If I get nothing, I'll hit my expectations. If I get something, then great. I'm just going to try to do my part to keep everyone's head up.
So signing bonuses for incoming FT are off the table I'd assume?
starting at a BB in a few weeks, got mine
was signing bonus in line with previous years?
you’ll get that it’s written in the contract
Boutique shop here. Hours have been much worse & we've picked up a full plate of new mandates. Bonus is 100% intact
BB AN 1 here (GS / MS).
Bonuses pretty much unchanged, management made a diligent effort to support analyst bonuses given were still working a ton. Obviously pleasantly surprised and we appreciated it.
Top may have dropped 7.5k but the mid to mid-top buckets same as last year give or take 2.5k
Are GS/MS still in the $130k-$140k range?
Yeah we were in the 125-150 range this year. Have to be pretty bad to be below 130 though. Most people hit that at least
I received my bonus already this year. Next year maybe a toss up.
London office of US BB here: bonuses went up vs last year. Not a lot but increase on the avg
tier I or tier I bis / tier II BB?
delete
Ask me in 2 weeks
Do u think a year end bonus foer a new analyst startin in Aug is out of the question? My group has told me we're super busy but who knows. Would love to hear what I should expect.
If your bank does stub bonuses in December you'll probably receive something, but down from previous years. Depends on firm/group
Bonus is fucked, but it could be worse, I could be in Audit or something
Not bad, no issues from our fund. Only back office is being cut ofcourse. Some desks had huge increases in bonus. Really varies on the desk your on.
In-house strategy department - bonus not impacted, still getting 100% of full target Bonus.
whats the all in comp for in house strategy at your firm at the analyst level?
Left a top group at mid-level BB a few weeks ago. Shockingly, bonuses were a lot better than expected: top bucket was $70k for AN2. The MD who gave me the number indicated that $70k was ~10-15% under last year's top bucket bonuses, so last year was $75-85k if I had to guess.
I know we paid our analysts 10-20k less across the board at a lower BB
Bump. How do people’s numbers look like - haven’t gotten mine yet?
MMPE, 100% of target bonus achieved However, had terrible experience in banking (GS/JPM/MS SF). Good luck out there
Any updates? Nothing from JPM yet
I know at least some of Credit Suisse released today. For analysts, bonuses are only about $5-10K lower than normal
any word on S&T bonuses?
BofA IB numbers in line with last years AN1 & AN2 numbers.
The street in general keeps up in terms of what other comparable firms are paying analysts and potentially even associates so you can expect a level of uniformity across firm junior bonuses. Glad to see no one was particularly hard hit
I made 175k this year. COVID did not impact my bonus.
Congrats. What type of bank and what bucket?
How much does UBS (NYC) pay all in roughly?
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