PwC and Strategy& Just CANCELLED their Internships and are giving 2500k stipends and FT offers

QjcjaZ9's picture
Rank: Baboon | 131

The title says it all. This is across the United States, M&A dealflow is also really down and banks will want to preserve cash...

Comments (112)

Apr 1, 2020

So if one has an M&A internship, do you think those students won't get FT offers because of slow activity (even though FT would be year away), whereas IB interns in other departments would? I know nobody knows anything. Just wonder what others would be thinking here. But of course it's stupid. Nobody knows.

Apr 1, 2020

So all their incoming interns are receiving $2,500 + a guaranteed FT job?

What's so bad?

    • 5
Apr 2, 2020

people usually need their internships to pay for school or their MAcc program.

    • 1
Apr 3, 2020

No such thing as guaranteed lol

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  • Analyst 1 in Other
Apr 3, 2020

It is guaranteed. That is precisely what the email says. PwC is not going to get shut down or something. It's a safe and promised offer.

    • 1
Apr 3, 2020

you could also find it difficult to land a full-time offer without the internship experience if you have to. Let alone the opportunity to have a "preview" of the firm before you decide whether you want to work there full time

    • 1
Apr 1, 2020

Well that's just awesome. Internships suck anyway.

Array

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  • Intern in 
Apr 1, 2020

Wow super impressive. Will BBs/EBs follow suit? It's almost funny considering just yesterday there were tons of people bashing interns on other threads saying there was 'virtually no chance' of direct FT conversions but then again they were also probably referring only to IB.

    • 4
Apr 1, 2020

Yeah that's why I think that thread started to die. Too many opinions on there and nobody really knew what was gonna happen. Gonna be an interesting next couple of weeks where there will be new company updates every single day.

Array

Funniest
Apr 3, 2020

Oh gawd they brought the "InCoMiNg AnAlYsT" title to WSO as well...

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    • 2
Apr 1, 2020

Would be a shame if IBs followed suit. FT offer conversion is always below 100%, how would that even work?

  • Analyst 2 in IB-M&A
Apr 1, 2020

Offers rescinded after x% sign lmao imagine that

    • 8
Apr 1, 2020

I dont know about BBs but I could see some very small firms pulling something like that where theres only like 4 or 5 positions avialable

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  • Analyst 1 in Other
Apr 1, 2020

LEK also cancelled their internship and gave all interns a FT offer. Honestly, the reception to this idea among the interns has been universally positive. I think the top consulting firms like McKinsey and Bain, where almost everyone gets a return offer (90-100%) should all do this, rather than give the interns a shity and useless virtual experience that will be pleasant for nobody.

    • 1
Apr 1, 2020

This is completely false. All internships will be virtual and likely receive a FT offer at the end of it.

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Most Helpful
Apr 1, 2020

No, your comment is false. Interns have confirmed this already.

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  • Intern in IB - Ind
Apr 1, 2020

Yeah, I saw the email myself from PwC. It states what OP said.

    • 3
Apr 2, 2020

This must be for the handful of corporate finance interns because as of yesterday this is not the case for advisory, audit and tax. They are going forward with virtual internships. Need to clarify this since the title does not say all.

  • Associate 1 in IB - Gen
Apr 1, 2020

Chill, dude. The past week was huge for primary credit markets. Strong restructuring banks are turning down business. DCM desks at BBs and restructuring groups at EB are doing quite well. Bank of America came out today stating their internships and full time offers are in tact. Other banks will likely follow. Sorry your consulting gig was cancelled, no need to instill fear in all the aspiring bankers here though.

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    • 7
Apr 1, 2020

Can you read?

    • 6
Apr 1, 2020

What does this have to do with consulting?

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  • Associate 1 in IB - Gen
Apr 1, 2020

The last line of OP's post saying that since M&A deal flow is down, banks will want to preserve cash implying that banking internships will follow in PWC's footsteps.

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  • Intern in IB - DCM
Apr 2, 2020

Hey. I'm an incoming SA in DCM. Can you talk more about what's going on activity wise in DCM right now?

  • Analyst 1 in IB - Ind
Apr 2, 2020

No clue for DCM but a lot of firms are reaching out to my team (Investment Bank Short to Medium Lending at BB) for products to increase liquidity until Q3-Q4.

As in, firms are asking for loans with the expectation their business will be bacl to normal by Q3-Q4.

Apr 2, 2020

The past couple weeks included record setting days of debt issuance, particularly for strong investment grade companies. Several of them are either anticipating the need for cash in the future or issuing as an insurance policy against potential weakness in the coming months despite the increase in spreads versus the historical lows we saw in February.

    • 1
Apr 1, 2020

How much does the PWC internship typically pay? $25/Hour? Full time pay $55-$65, or more?

Apr 2, 2020

Can't answer for PwC, but S& gave $41 an hour for interns (plus overtime!!) last summer.

Base of 90k, bonus potential of 30%.

Top of market for consulting comp.

Array

Apr 2, 2020

Wow! For undergraduates? You said it is top of the market...Do other firms pay anywhere close to that level? Thanks!

  • Intern in Consulting
Apr 2, 2020

Any advice for sophomores? I was interviewing for their women's consulting experience program (obviously won't happen this summer). Worried about the impact on the next intern class.

  • Incoming Analyst in S&T - FI
Apr 2, 2020

Consulting always has a high conversion level so I'm not surprised firms have done this. I expect other consulting firms to do the same. However I'd be VERY surprised if the banks follow this model. In my mind banking conversion rates are a completely different animal.

  • Prospect in IB-M&A
Apr 2, 2020

Guys shut your mouth you are scaring the interns. It is equally likely, that Banks will do the same and no the conversion rates at banks is not that much worse.. (+70%). I am 100% sure that all SA's will get a FT offer this year due to the circumstances. Especially the BB interns in NYC

    • 3
Apr 2, 2020

wouldn't some desks have to cut some people? I know some firms that are strict on taking ~50% of people.

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  • Prospect in IB-M&A
Apr 2, 2020

Tell me of one single group at a BB in NYC that strictly takes 50% or less every year... I don't know of one single group that does that. I know for a fact in my 5 years at GS that the offer rates varied extremely and we had years where we just hired 64% and years where we hired 90%. This is just going to be a year where we hire 100% and it is not going to hurt us at all. However, be reminded, that laydowns become more likely as you approach Analyst 2 and 3.

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  • Prospect in IB-M&A
Apr 2, 2020

Ya feel like this could be highly dependent on the bank. Some banks are known for giving 80 to 90% of interns offers, whereas others are known for overhiring and then giving significantly fewer offers.

  • Incoming Analyst in IB - Gen
Apr 2, 2020

This doesn't make sense. I wrote an answer similar to this in another thread- I will repeat it here: It would be nice to say everyone will get an offer- like apparently PwC has done. However, PwC and the big four in general give offers to usually 95-100% of interns. I've worked both at a Big Four and at a BB and they are completely different when it comes to recruiting. It would be great to say of course everyone should receive an offer, especially when you can't even tell the interns apart when it's all virtual. The reality is that banks simply do not have spots for every intern. Over the multiple summers I've worked at a top BB it was always the case where there are 4-5 spots for FT and like 6-7 interns gunning for it- that's how they run things. Maybe this will be a wake up call for BB banks but I seriously doubt it, but one thing I can guarantee is that there is a zero percent chance of each intern receiving a FT offer automatically. It just isn't feasible. This is not to cause fear, but I am simply being rational- wishful thinking leads to people being ill prepared for reality.

  • Prospect in IB-M&A
Apr 3, 2020

how about small teams with only two interns ?

Apr 2, 2020

bump

  • Intern in IB - Gen
Apr 2, 2020

I wouldn't be surprised if Jefferies does this as their return offer rate is 90%+ at least for NYC office.

Apr 2, 2020

I would normally agree but this is like a perfect storm of pain for Jefferies with current economic conditions. BB are likely to be much less affected than Jefferies deal flow imo, I'm sure they will still convert a lot despite this.

  • Intern in IB - Gen
Apr 2, 2020

Nah Jefferies had insane revenues in 1Q beating all records so much so that if they made literally $0 in 2Q it wouldn't even be that bad of a first half. Also they have a strong balance sheet and massive liquidity. They'll be fine. They also have a pretty decent RX team. Only problem for them is that LevFin is getting crushed right now and that's a major part of the business model so who knows we'll see it really depends how long this thing lasts.

Apr 2, 2020

Back when I was in college evaluating the consulting vs IB path, I was under the impression that it was easier to get an IB internship than consulting one (more slots available in IB), but easier to get a FT consulting job than IB (consulting more receptive to not having a directly relevant background before and high % of IB SAs convert) - could be a reason why automatic conversion in IB is less likely to happen. Maybe that was an entirely wrong perspective, but just a thought.

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Apr 2, 2020

100% agreed. Far less consulting internships, but, as a result, much higher return rates

    • 2
Apr 2, 2020

One thing that nobody has mentioned in this thread is the simple fact that right now no one can work in the office in NYC whether you are a SMD or SA in NYC because IB is not considered an essential business... and... even when the curve starts to flatten there are significant fears that opening back up too early would be akin to starting all over again. My personal expectation is that FT employees won't be back in the office on June 1 let alone interns...

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    • 2
Apr 2, 2020

I feel similar in that reopening could cause a second wave. However, businesses can't be closed forever. We will have to reopen and hopefully two months of this partial shutdown is enough.

Array

Apr 2, 2020

Financial institutions (including investment banks) are included in the list of essential businesses published by NYS (item #7). Please check your facts.

https://esd.ny.gov/guidance-executive-order-2026

    • 4
Apr 2, 2020

Also just FYI if anyone needs this sorta info about companies ramping up hiring

https://www.businessinsider.com/cloudfare-doubles-...

Apr 2, 2020

My friend is getting 3500 to complete a 2 week virtual internship and a full time offer

Apr 2, 2020

assuming this is also for PwC?

Array

Apr 3, 2020

what division? I've seen different numbers for audit/tax/etc vs. corporate finance vs. consulting

Apr 3, 2020

consulting

    • 1
Apr 2, 2020

Yes

Apr 2, 2020

Anyone notice the title says 2500k? Seems like a great deal haha

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  • Intern in 
Apr 2, 2020

.

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  • Incoming Analyst in IB - Gen
Apr 2, 2020

I haven't heard of one rescinded offer. Not saying you're wrong, but just curious what bank did that?

Apr 3, 2020

I don't think she is "shopping around for more offers". She is simply taking control of her future by "leveraging her network", which is the whole point of LinkedIn right?
Please consider removing your comment, as it is quite rude and degrading to whoever she is.

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    • 5
Apr 3, 2020

What if she didn't get a ft offer?

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    • 1
Apr 3, 2020

+1.

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    • 1
Apr 3, 2020

+1!! We can't be assuming that she did. There's no reason to call her out like that.

    • 1
  • Prospect in Other
Apr 3, 2020

Lol I go to Cal and this was the first post that popped up on my LinkedIn feed just now

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  • Intern in IB - Gen
Apr 3, 2020

.

    • 1
Apr 2, 2020

i want 2500k too lol

  • Analyst 1 in Other
Apr 2, 2020

Second major consulting firm to cancel all internships and give their interns all full-time offers. LEK also did this.

Notably, PwC also included Strategy&, one of the top Tier 2 firms.

LEK and Strategy& certainly are not MBB, but they are respectable shops. Curious to see what precedence this sets.

Apr 2, 2020

Booz Allen Hamilton cancelled summer program too

Apr 2, 2020

Has anyone heard anything about Deloitte and the other Big 4s for internships? Deloitte seems to be the only Big 4 staying quiet so far. I am an incoming advisory analytics intern at Deloitte for this summer in NYC.

Apr 3, 2020

I'd chalk that up as a win if I was an incoming intern. In this environment? Anything less than a rectal prodding is a win.

    • 1
Apr 3, 2020

The $2500-3500 (I've seen both of those floated) can probably stretch a bit more too because you're not paying for housing, commuting, going out to eat/drinks, etc. Way less than the $10-12k they would probably make pre-tax over the summer but still.

    • 1
  • Prospect in 
Apr 3, 2020

Any news on whether this would be extended to Strat& London?

  • Intern in Consulting
Apr 3, 2020

Bump

Apr 3, 2020

heard LEK and AT Kearney did that too.

  • Intern in Consulting
Apr 3, 2020

Think those were for MBA roles though - not undergrad

Apr 3, 2020

i think lek was for undrgrad also according to comments above. AT Kearney one is first time I hear of it, could this be the new trend? any one hear anything else? hope everyone is safe and healthy

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  • Analyst 1 in Other
Apr 3, 2020

Not sure about Kearney but I can confirm LEK did it for undergrad as well.

Apr 3, 2020

What did AT Kearney do ?

Apr 4, 2020

FT offers at PwC are for MBA interns aswell or just for undergrads ?

Apr 10, 2020
Comment
  • Associate 1 in CorpFin
Apr 6, 2020