How much is comp for a first year MM analyst?
How much would you say the median analyst makes at a MM? Yes I know it varies a lot but want to see the low and high end. What is the breakdown of base vs bonus?
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In a similar boat. Would be helpful to hear some actual figures from 1st / 2nd yrs.
Base at MM I've worked at ranges from 150-200k. Bonus is a different animal.
At citadel most analysts manage a book and get a cut. At other MM there's a potential to manage a carve out and get a cut.
But let's assume you're a covering analyst with no book. I'd say 1-3x base is fair in a "normal" year, whatever that is since dispersion is very high in this field, including how greedy your PM is.
If your bonus is zero, you probably won't have a job on Jan 1.
Uh don't think 1-3x base as bonus is a fair characterization. Maybe in a year like this. But plenty of analysts getting less than that during normal years and also not getting laid off
Nope
Up to 3x for a first year MM analyst on 150-200 base? Somebody handing out free money then.
I've seen a 2-year associate become analyst and make 500k first year at MLP. If you're good, know your companies, and know how to get ideas in the book it's doable. Personally I don't think the job is even worth the stress below 300-350k, 400k in NYC. Like MMPM says, first year analyst can mean a lot of things
Sure. I am thinking in the most conventional sense though. 2-3 years banking or sell side research, then maybe move to do MM. Not sure how that person would add even remotely that much value. Of course there are exceptions. If we’re talking somebody who’s done the same stocks at another place forever and moved to a MM, well - don’t really consider that a first year analyst.
~100 - 150 base, ~50 - 100 bonus.
Can confirm
50-100k sounds very low unless you're only an associate (not analyst), generating zero pnL, or your PM is cheap. Are we talking one of the big MM here?
The question is poorly posed to begin with. What exactly is a "1st year analyst at a MM"?
I know 24-year old first year analysts at my MM, and there are also 54-year old "first years". Their comp expectations obviously differ a ton.
I took it to mean your first year at one of the big name MMs, either after 1 -2 years of banking or straight out of undergrad, ignoring the different titles across firms. I don't think it's low at all.
Gotcha. I've usually seen hires from SS and IB go into associate role. Analysts typically have buyside exp, that's why I quoted higher comp numbers.
Appreciate you guys indulging us in hypotheticals.
For some one with an analyst title (no book) and a 2+2 (IB+PE) background what's a good benchmark for first year comp but more importantly, what's the most common trajectory for analysts in their 2-3rd year. Do I need to be assertive in getting a carve-out and negotiating pnl linkage in order to have comp increase?
First thing to understand is that unlike IB or PE, tenure or years of experience means little or nothing in MM HFs. There is no entitlement to annual comp increase.
In most teams, your bonus will be vaguely tied to your team's and your own performance. But it is unlikely you will be given a defined % of the bonus pool. It is also unlikely you will be given a carveout after only 2 years.. 99% of guys are unprepared to manage a book with such short experience.
The more realistic path is to be patient, keep learning, and try to be in a position to become PM or get a carveout after 4-5 years.
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