I was recently offered an Associate position out of grad school at a mid-market IB for M&A. They indicated the bonus will be competitive and significant, but didn't really give an indication as to how much that would be.
Any ideas what I could expect? 25, 50% of salary? More, less?
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depends on the firm. which bank?
It's entirely dependent upon deal flow, deal size, headcount, expenses, etc... If you work for a small shop that closes just a couple of deals per year your bonus could fluctuate pretty dramatically. It may only take one or two decent size deals to cover the firm's fixed costs for the year. Any other deals that close beyond that are simply gravy and your bonus increases at a parabolic rate.
IMO, for a reputable shop in an average year you could expect somewhere around 40-50%.
restructuring bonuses on avg were 1-1.5x base. this year.
I've heard 100% of salary at the MM level but as stated above it depends largely on where you work.
Are you talking MM like Harris Williams, Baird, Blair?
Regards
A good MM firm will pay at or close to street. Think 70k base and 50k bonus.
Thanks for the responses guys. The group competes with Harris Williams, Blair, etc.
Salary offered was around $80K. Also, it isn't in NYC or Chicago, so I'm sure that will lower it a bit.
$80k actually seems a bit low, but I know some places have restructured the way they pay out total comp...but location and culture factor in too. Depending on what market you are in, I would think that your bonus should be 100%+ of your base. I mean, I know a 3rd year analyst that makes roughly that much at a similar size/focused bank.
Did you get much of a sign-on bonus (if you don't mind sharing)? I will probably be going to business school next year and will likely end up doing the associate in IB path, assuming I can't find what I want on the buy side...so I just want to have an idea of what to expect.
Regards
Misread "Associate" as "Analyst" in OP. Agree with cphbravo
$80k is low if you're post-MBA. I would expect that number to be closer to $100-110k. $80k is on par with most BB 2nd year analyst salaries.
Thanks for the insight guys. I think I am still going to take this position over a non-IB offer that I also hold. Ultimately, that is what I want to do.
I come from a non-target with a non-business undergrad degree and worked in Supply Chain pre-MBA. I wasn't expecting to hit a home run since my only relevant finance and IB experience is through a recent internship. It probably helps that the city is far cheaper than NYC and cheaper than Chicago for cost-of-living.
I'm hoping I can at least pull around 75% or so of the salary. The MD did tell me they would be very competitive on that front b/c he doesn't want me to bolt after a year or two. Then again, they probably all say that.
Again, appreciate the responses.
this is a post-mba salary? What b-school are you coming from?
Yeah it seems like they were using fluff words to let you know it’s not going to be NYC numbers.
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