Comments (30)

 
Jan 5, 2012 - 11:15pm

hahaha jefferies payed above street bonus? funny joke dude....

Here's the thing. If you can't spot the sucker in the first half hour at the table, you are the sucker.
 
Jan 6, 2012 - 12:00am

HLHZ is SUPPPPER cheap with their corp fin bonus...just watch out. Jef isn't that great either

 
Sep 27, 2012 - 3:34pm

The HL comment isn't accurate for associates, the most recent bonuses were above Street (multiple independent data points). Analysts' numbers were possibly a little below, but I don't believe that constitutes "SUPPPPER cheap".

 
Sep 27, 2012 - 3:35pm

middle market bonus (Originally Posted: 06/01/2011)

Hey guys,

Anyone know the pay structure at the analyst level for a reputable middle market i-bank in New York? Think Oppenheimer, FBR, Piper Jaffray ect..Have they increased base to 70 K yet? Thanks a lot guys.

 
Sep 27, 2012 - 3:37pm

i know piper and oppenheimer are 10k signing + 70k salary, not sure about the bonus

Goodness is the only investment that never fails.
 
Sep 27, 2012 - 3:38pm

MM bonus / comp (Originally Posted: 02/14/2010)

How much lower is the bonus at good middle market firms vs bulge bracket? Anyone knows what analyst bonuses (last yr) and associates bonuses (this yr) were at firms like weisel / Baird / blair? Is the base in line with bulge and bonus about 25% lower? Do these middle market firms pay 100% bonus in cash to associates and analysts or stock is good part of comp?

 
Best Response
Sep 27, 2012 - 3:39pm

I can only speak to the bonuses received at my particular MM bank, but I believe it to be pretty representative of the rest of the MM shops out there. I will say that I believe that MM banks in general have a much larger bonus band due to the fact that profitability can vary widely by year and there isn't such a defined benchmark like the BBs have.

In terms of cash/stock allocation, many MM banks (and boutiques) are not public companies. As a result, they are forced to pay their analysts in cash. Also, the purpose of paying compensation in stock is to align the individual's interests with those of the bank. The analyst role typically only lasts 2 years and therefore does not lend itself well to this model. Associates are more likely to see a portion of their bonus in stock, but I don't have any experience in that area, so I'd just be speculating.

As for the actual $$$s received at MM banks, I'm assuming your guess that bonuses are 25% lower is based on the general obsession for BBs on this board. My experience has been quite difference. In 2007, the bonuses at my bank we're higher than IB bonuses at Goldman Sachs and the rest of Wall Street. In 2008, when banks started to falter, our bonuses were less than 10% off 2007 bonuses. In 2009, when people were reporting bonuses of 20-30k, we received more than twice that.

So, while I still stand by my comment that I have just 1 data point and that it can vary widely by bank, I wouldn't assume that MM banks pay their analysts any less than the BBs just because they are MM banks.

CompBanker

  • 3
 
Sep 27, 2012 - 3:47pm

CompBanker:
I can only speak to the bonuses received at my particular MM bank, but I believe it to be pretty representative of the rest of the MM shops out there. I will say that I believe that MM banks in general have a much larger bonus band due to the fact that profitability can vary widely by year and there isn't such a defined benchmark like the BBs have.

In terms of cash/stock allocation, many MM banks (and boutiques) are not public companies. As a result, they are forced to pay their analysts in cash. Also, the purpose of paying compensation in stock is to align the individual's interests with those of the bank. The analyst role typically only lasts 2 years and therefore does not lend itself well to this model. Associates are more likely to see a portion of their bonus in stock, but I don't have any experience in that area, so I'd just be speculating.

Always having the answer to my questions! Search function :)

Thanks CompBanker! Do you work at a bank based out of the midwest that offers both PE and IB? Based on how you answer some questions, I feel I may start my FT this summer at your firm.

As for the actual $$$s received at MM banks, I'm assuming your guess that bonuses are 25% lower is based on the general obsession for BBs on this board. My experience has been quite difference. In 2007, the bonuses at my bank we're higher than IB bonuses at Goldman Sachs and the rest of Wall Street. In 2008, when banks started to falter, our bonuses were less than 10% off 2007 bonuses. In 2009, when people were reporting bonuses of 20-30k, we received more than twice that.

So, while I still stand by my comment that I have just 1 data point and that it can vary widely by bank, I wouldn't assume that MM banks pay their analysts any less than the BBs just because they are MM banks.

Obsessed is a word the lazy use to describe those who are dedicated.
 
Sep 27, 2012 - 3:48pm

CompBanker:

In terms of cash/stock allocation, many MM banks (and boutiques) are not public companies. As a result, they are forced to pay their analysts in cash.

So, while I still stand by my comment that I have just 1 data point and that it can vary widely by bank, I wouldn't assume that MM banks pay their analysts any less than the BBs just because they are MM banks.

Do you know anywhere that pays analysts in stock???

If you are at a mid-market bank (I also think it's important to distinguish mid-market from true boutique in this particular case) that is strong in a particular product (Jefferies lev fin, Houlihan restructuring, Harris Williams M&A) this might be the case, and also especially in light of where the traditional 'big banks' are paying over the last few years (UBS, Barclays, GS in particular come to mind as places that have had pretty brutal pay cuts at the junior level), but you should be careful applying this to the "middle market" as a whole, or ESPECIALLY in extending it to true "boutiques".

It's really a bank-by-bank process these days as all banks are grappling with various transitional issues, personnel management, etc. and the old order has been shaken up. For example, guess who the highest-paying bank was in 2011? All signs point to Wells Fargo. Surprising?

 
Sep 27, 2012 - 3:53pm

CompBanker:

I can only speak to the bonuses received at my particular MM bank, but I believe it to be pretty representative of the rest of the MM shops out there. I will say that I believe that MM banks in general have a much larger bonus band due to the fact that profitability can vary widely by year and there isn't such a defined benchmark like the BBs have.

In terms of cash/stock allocation, many MM banks (and boutiques) are not public companies. As a result, they are forced to pay their analysts in cash. Also, the purpose of paying compensation in stock is to align the individual's interests with those of the bank. The analyst role typically only lasts 2 years and therefore does not lend itself well to this model. Associates are more likely to see a portion of their bonus in stock, but I don't have any experience in that area, so I'd just be speculating.

As for the actual $$$s received at MM banks, I'm assuming your guess that bonuses are 25% lower is based on the general obsession for BBs on this board. My experience has been quite difference. In 2007, the bonuses at my bank we're higher than IB bonuses at Goldman Sachs and the rest of Wall Street. In 2008, when banks started to falter, our bonuses were less than 10% off 2007 bonuses. In 2009, when people were reporting bonuses of 20-30k, we received more than twice that.

So, while I still stand by my comment that I have just 1 data point and that it can vary widely by bank, I wouldn't assume that MM banks pay their analysts any less than the BBs just because they are MM banks.

CompBanker,

Do you have any info on how much the associates/VPs/MDs get paid at top MM (Blair,Baird,Lincoln,Houlihan) firms compared to the BBs?

Also, you said that the profitability can vary greatly in the MM. Would that mean there is less job security as a mid-senior level banker at MM firms?

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