Comments (42)

Oct 31, 2014

Those were good days. I look back at my peak total comp from that era and dream of seeing that number again.

Oct 31, 2014

Bonuses were much larger back then.

Oct 31, 2014

Yup, those were the days: http://dealbreaker.com/2012/04/bonus-watch-2007-th...

^Some associate at Lehman made $600K, and median for VP's was $568k. Things will likely never be that rosy ever again.

Oct 31, 2014

And as a personal anecdote, one of the VP's I worked with told me he hasn't again come close to making as much as he did when he got promoted to associate in 2007.

Oct 31, 2014

What kind of levels are they now? Still seem pretty high to me personally, but I'm basing that on anecdotal evidence - I know of 2nd year associates last year who got ~$400K all in (Australia). Granted, well-regarded associates at a top bank. Is that in-line with current US IB pay?

Oct 31, 2014

No

Nov 1, 2014

What do top-bucket 2nd year associates at top US banks get? 300? More/less?

Nov 1, 2014

I definitely made more than that as a VP1. Comp is slowly starting to come back to those levels, but its much more group and team specific. Banks have become better about differentiating comp.

Nov 1, 2014

$300K for a second year associate is doable, especially for next year with base being $175K.

Nov 2, 2014

Sounds like it's pretty comparable between Australia and NY if you factor in the exchange rate

Nov 4, 2014

Where have you heard $175 base for A2. I am an A0 at a top mm and have not heard this number anywhere. I am at $125 for A0/A1.

Nov 10, 2014

Some BB offices in Canada get paid 140 stub, 175 A1, 200 A2. The amounts were set a decade or so ago when the C$ was at like 0.60 and they never moved it.

Nov 4, 2014

A couple of years ago a 2nd yr MD told me the most he ever made was as a 3rd yr VP.

A director told me he made $415k as a 1st yr associate in 07. That is not quite double what I got as top bucket at BB my first year...not adjusted for inflation.

Nov 8, 2014

I think the question worth exploring is a 'cut' breakdown of revenue producers and how much is shared or hoarded.

Nov 8, 2014

Post-MBA IBD has picked up, but it's nowhere near pre-financial crisis and never will be (at least in the foreseeable future). Ditto for S&T.

A bunch of my classmates got IBD offers and are deciding on whether to accept. Very few of them actually WANT banking. Some of them are depressed at the prospect of working 80-90 hours/week for a job in overpriced NYC that doesn't pay that much. Yes, IBD raised base by 25%, and signing bonus is pretty decent, but once you factor in NY state tax, NYC city tax, outrageous rent, higher COL for virtually everything, and lack of desirable post-MBA IBD exit opps (going from post-mba ibd to buyside is very hard), it's just not that great of a deal. My classmates recognize this, hence their hesitation to accept the offers.

Nov 8, 2014

Finance is coming back. I think the tech bubble is coming to the end in the next 2 years. If Stanford GSB grads are moving back to Finance over tech, you know it's a leading indicator.

Nov 9, 2014

As an aside, that spending diary of hers is really depressing.

Nov 9, 2014

Do investment bankers get payed increasingly with company stock as they move vertically through the company?

Nov 10, 2014

Yes. To my knowledge most banks have caps on the cash component of total pay and when you exceed that cap the remainder of your comp is stock (as long as the bank is publicly traded, of course)

Nov 10, 2014

MS is the only bank I know hard facts on, but I assume most BB are the same way. MS cap cash bonuses at $125,000 and the rest is in stock, so yes, the higher you move up, the more of your bonus is made up of stock.

Nov 10, 2014

Guys. Seriously. Stop.

Banks don't "cap" your cash bonuses. You get paid an all-cash bonus up to a certain point, and then beyond that point, a PERCENTAGE of your bonus comp is paid out in stock, which generally vests over a 3-4 year period.

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Nov 10, 2014

Aren't we saying exactly the same thing? I know of at least one bank that has a very literal cap on the amount of cash that can make up comp - doesn't affect your comp figure, but once your comp becomes higher than that level you get cash to the cap and stock for the rest.

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Nov 10, 2014
notthehospitalER:

Aren't we saying exactly the same thing? I know of at least one bank that has a very literal cap on the amount of cash that can make up comp - doesn't affect your comp figure, but once your comp becomes higher than that level you get cash to the cap and stock for the rest.

No, we're not saying the same thing at all.

In your scenario, if someone were to get a $200k bonus, and the bank had a "cap" at $100k, that person would get $100k in cash and $100k in stock. This is NOT how it works.

In my scenario (aka reality), if someone were to get a $200k bonus, that person would get $100k in cash + 33% of the next $100k in stock and 67% in cash, equating to total bonus comp of $167k in cash, $33k in stock.

All of the above numbers only apply to bonus comp (base is unaffected and always all-cash) and obviously the numbers are theoretical, since the "cap" as well as the %' stock / cash split differs by bank. However, what you've described (a hard cap on cash comp) is completely off-market. I highly doubt "at least one bank" has a "literal cap" on comp, and even if it does - again, that's totally off-market. The more likely explanation, however, is that you don't know wtf you're talking about.

Nov 22, 2014

A 32 year old investment banker should be around Director level, or high VP level if they decided to pursue an MBA. VPs at BBs make 350-600k and Directors make 500-1.5M

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Nov 23, 2014
gymclassheroes:

A 32 year old investment banker should be around Director level, or high VP level if they decided to pursue an MBA.

What on earth are you talking about?

Nov 24, 2014

2 years analyst, 3 years associate, 3-4 years VP--> Director. 32 years is HIGHLY feasible, given that fast growing boutiques like Moelis and even some BBs have MD's that were home grown under age 38.

Best Response
Nov 25, 2014

they exist at hedge funds...which is why most all of the great sell side traders and strategists still go to hedge funds

banks have decided to pursue lower risk strategies...and that includes not paying large S&T bonuses

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Nov 25, 2014

Also prop shops ;)

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Nov 25, 2014

Money for nothing & chicks for free...

    • 1
Nov 25, 2014

Umm no, of course not.

Nov 25, 2014
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