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For these three banks: no
Associate base pay is now $65k higher for IB compared to S&T! Bonus is also higher, so the pay disparity between IB and S&T continues to grow
Is that really accurate? What is the average Ao1 base + bonus (street, BB) in IB vs. S&T nowadays?
The bonus won't make up for the base difference, unless IB bonuses are going down by more than the base has been increased.
Associate 3 base is $160k in S&T, and $225k in IB now. Bonus is between $20k-$70k in S&T, and between $80k-$140k in IB.
I wouldn’t be surprised if salaries went up too, but not sure if I have heard anything about it outside of this forum
It seems like it will be difficult to compete for talent if not.
I don't think they need to compete for talent. S&T global headcount is still shrinking, and there aren't a ton of exit opportunities, so people aren't constantly leaving for other industries or banks. Private equity is still going strong, Hedge Funds aren't doing so hot.
There is also no pressure from boutique S&T, as economies of scale mean that only the biggest 5-6 banks can compete these days. So the upward pressure that Evercore, Moelis, Jeffries, Centerview, etc have had on IB pay doesn't exist in S&T.
All you need to start up a boutique investment bank is relationships and a good reputation. A boutique S&T shop would need a ton of capital and a big balance sheet.
Analyst pay is different. But we sure should compare an Asso3 in banking (3 years post mba) so someone with 5-7 years work experience. Most banks would that person not be a VP or some random director term, and have ownership of a book or risk role? In that way their bonus would not be limited.
IBD generally has 2.5 years of associate, S&T has 3 years. It depends on the bank. Some banks only give you your own book at VP. If there's a book available to give that is. If there's no book available you're invited to find one elsewhere.
IBD also has direct promotions from Analyst 2 to Associate, while S&T generally has third year analyst. MBA isn't needed if you want to stay at the same bank. So the S&T associate generally has more years of experience than the IBD associate.
Head of our desk sent out a link to an article about the rise in pay for juniors in IBD... probably just fishing
Haven’t heard anything in regards to S&T across banks though... would be nice though
That’s cool
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