Strange IB analyst opportunity - Need advice

Im an '06 grad from a non-target. 3.3 GPA, but high honors. Planned on a mediocre law school out of graduation (it sneaks into top100 in US News), took the gmat, scored 700+ (which definitely helps on resumes) and decided to defer law and do bschool in 3-4 years instead.

I took a job doing corporate finance (glorified accountant) for a fairly large, publicly traded company. Pay is almost 60k salary though, and im a grade higher than the "new college grad" program. Bottom line is it was a good opportunity. The one other job I would have considered (would consider) is IB.

Saw an ad at a decent MM bank on craigslist of all places. Threw out a resume, have an interview scheduled.

So the offer is non-traditional because the bank recently had a 1st year analyst quit. They need someone to fill the gap asap. Start date is probably within a month, were I to get the offer. Formal training will be offered with the '06 incoming class in June.

The issue I am concerned with is what will my tenure look like? Will I be given a 2 year analyst role, PLUS these few months before June? Or will I be considered a 1st year, and in June of '06, considered a second year and be out in June of '07? If the latter, will I be paid like a second year analyst, even though I have 1st year experience? Do I have ANY leverage in negotiating terms such as this?

Given all these options, which am I even rooting for to be offered? How will each option look for exit opps? Which is worse, being an analyst for 14 months or 3.5 years (if I were to accept a 3rd year offer)?

Any advice is appreciated.

 
Best Response

It's good that you have these questions in mind but what you should be concentrating on is doing well in the interview. All of the questions you posed can be answered once you receive the offer, in post-offer negotiation. You have more leverage depending on a number of factors including:

How many other people they are considering and how close the decision was (if someone was just as good, and you are bitching about status or money, forget about it).

How much relevant experience they feel you have. This is a function of how well you sell your experience during the interviews. My guess, since you describe your job as a glorified accountant, is you don't have much. They will probably regard you as a first year to be promoted in June '08, similar to someone who graduates early and starts working off-cycle.

If they offer you a first year role that promotes to 2nd in June, they will expect you to stay on for your third year.

Most banks (and if this is a well known MM, this applies) will tie comp with status. A first year status is given first year comp, basically no exceptions (unless they are in dire need of someone and you are the only one qualified...a doubtful situation).

The situation most beneficial to you would be the offer to be promoted to second year in June. You would then stay on for your third year for a total of 2.5 years. You therefore maximize your job security and your pay potential, and you can interview off-cycle for buyside jobs during your 3rd year.

That being said, start studying. In my experience, and my bank has tried interviewing industry corporate finance guys for IB analyst roles, industry CF guys were just not up to snuff by any stretch, and got axed right away.

 

I agree that industry CF guys would not be up to snuff for ibanking... which is exactly why I want out before I get in too deep and forget everything I learned in school.

I was a Finance major (forgot to mention that) and this job has nothing to do with CAPM, WACC, etc, which is what I actually learned in school.

Thanks for the advice, very helpful and encouraging. I assumed worst case was to be "out" in 18 months, and its good to hear that probably wont be what this entails.

 

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