SA Comp

Tangent22's picture
Rank: Chimp | 6

I did a search, but I didn't find anything specific to this year.

I will be a SA at MS IBD this summer, and I am trying to get an idea of the amount of compensation that I will earn so that I can budget accordingly.

According to my offer letter, I receive the weekly 70k prorated salary. However, the offer also says that I will receive premium pay after 40 hours that calculated on a hourly basis and "generally at the rate of time and a half of my regular hourly pay".

I am reading this as: 70k prorated plus 1.5x OT after 40hrs/wk. Does anyone with experience with MS know if this is correct? Looking back through posts from previous summers it doesn't seem like that pay structure is common, so I'm wondering if I am misinterpreting this structure and/or the actual pay is different than it sounds. It definitely sounds like a lot...25-30k+ over 10 weeks if I am in the office a lot.

Also, I am in one of the regional offices (if this matters at all).

Comments (17)

Feb 24, 2011

If you're in California, I believe that many of the banks out here have made 1.5x OT after 40 hrs standard.

This is because of some California law where non-exempt employees (e.g. non college grads) if employed in excess of 40 hours cannot be paid on a salary basis, or something to that effect.

Feb 24, 2011
anonymous_analyst:

If you're in California, I believe that many of the banks out here have made 1.5x OT after 40 hrs standard.

This is because of some California law where non-exempt employees (e.g. non college grads) if employed in excess of 40 hours cannot be paid on a salary basis, or something to that effect.

Do you know if it is actually full 1.5x OT after 40/hr a week, or do they have some sort of sliding scale as you work more hours?

Feb 24, 2011

Really? IB pays overtime now? wtf

Feb 24, 2011

Yeah I heard this kid in Cali last year made like $30k over the summer or something ridiculous like that (at UBS LA)

Feb 24, 2011

Know it used to straight 1.5x OT when I interned at BB bank... has since been adjusted to a declining-scale OT calc, where the more hours you work the less incremental $$ you make. Guessing this is the more likely case. From memory, if you worked 80hrs/wk, you could expect an extra ~$300 per paycheck.

Feb 24, 2011

My understanding would be this:

70k a year = 1,346 per week

They likely have this prorated to 65 hours a week as such:

40(x)+15*1.5(x) = 1,346

x = 21.54 per hour (probably offer was for 21.50 or so)

this means that if you work 65 hours each week your check will be identical to 70k salaried, go over that and you make more, under is less

Let me know if that was confusing

Feb 24, 2011
PTS:

My understanding would be this:

70k a year = 1,346 per week

They likely have this prorated to 65 hours a week as such:

40(x)+15*1.5(x) = 1,346

x = 21.54 per hour (probably offer was for 21.50 or so)

this means that if you work 65 hours each week your check will be identical to 70k salaried, go over that and you make more, under is less

Let me know if that was confusing

This makes sense, and it sounds more reasonable. My friend is going to be an SA at BAML this summer, and I think that this is the scale that he said BAML uses.

However, my offer only mentioned OT after 40/hrs a week, so I'm guessing they must base the OT off a 40/hr work week too?

Feb 24, 2011
Tangent22:
PTS:

My understanding would be this:

70k a year = 1,346 per week

They likely have this prorated to 65 hours a week as such:

40(x)+15*1.5(x) = 1,346

x = 21.54 per hour (probably offer was for 21.50 or so)

this means that if you work 65 hours each week your check will be identical to 70k salaried, go over that and you make more, under is less

Let me know if that was confusing

This makes sense, and it sounds more reasonable. My friend is going to be an SA at BAML this summer, and I think that this is the scale that he said BAML uses.

However, my offer only mentioned OT after 40/hrs a week, so I'm guessing they must base the OT off a 40/hr work week too?

My original calculation had the 40 hour+ OT built in

4021.50 + (65-40)(1.5)*(21.50) = 1,346

Feb 25, 2011
Tangent22:
PTS:

My understanding would be this:

70k a year = 1,346 per week

They likely have this prorated to 65 hours a week as such:

40(x)+15*1.5(x) = 1,346

x = 21.54 per hour (probably offer was for 21.50 or so)

this means that if you work 65 hours each week your check will be identical to 70k salaried, go over that and you make more, under is less

Let me know if that was confusing

This makes sense, and it sounds more reasonable. My friend is going to be an SA at BAML this summer, and I think that this is the scale that he said BAML uses.

However, my offer only mentioned OT after 40/hrs a week, so I'm guessing they must base the OT off a 40/hr work week too?

Your OT begins after 40 hours, but is factored into the 70k prorated for 65 hours as mentioned above. Your offer letter should specifically stipulate what your hourly rate is.

Feb 24, 2011

I have an offer from JP that says pro-rated at 70k up until 40 hrs. And then 1.5x ($50.48/hr) after 40... This is nyc SA job

Feb 24, 2011
ellie84:

I have an offer from JP that says pro-rated at 70k up until 40 hrs. And then 1.5x ($50.48/hr) after 40... This is nyc SA job

Pro-Rating 70k at 40 hours then giving OT off that seems a bit high but if its really what they are offering that is great

Mine is SA in NYC at $25 regular with 37.50 over 40 (Not @ a BB)

Feb 24, 2011
ellie84:

I have an offer from JP that says pro-rated at 70k up until 40 hrs. And then 1.5x ($50.48/hr) after 40... This is nyc SA job

Sounds like my offer too. $50/hr after 40 hrs sounds incredibly high, so I wonder if there is a catch to this.

Feb 24, 2011

Premium Pay is .5x, not 1.5x

Feb 24, 2011
xyz12345:

Premium Pay is .5x, not 1.5x

That's how mine is. But I've seen 1.5x after 65, after 40 would be insane.

Feb 25, 2011
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