What Is The Analyst to Associate Promotion Package?

Prospect in 

I have noticed there is no discussion on this site regarding the analyst to associate promotion comp structure.

Is there a bonus for the promotion, separate from your A2 performance bonus? I've heard some pretty contradicting things and was wondering if it is structured or if it is ad-hoc. MBA hires are $60K Sign-On + $150K Base + $50-100K stub so roughly 250-300k all in; A2A's should at least be matched, correct?

Examples
I have heard that BB's are paying $100K "sign-on" for A2.5/A3's that are moving to AS1.
I have also heard that A2A's are underpaid (less than $150K base), in which case- what gives?

I think this could be a very useful thread for those interested in staying on and not heading to PE/B-School. Thank you in advance.

Comments (8)

Jan 18, 2020

Interested

    • 1
  • Analyst 3+ in IB - Gen
Jan 19, 2020

Interested here as well. For my MM, salary bumps to $125k in A3 (A3s are referred to associates internally), but not sure what the promo package is for those moving A3 to AO1 besides a $25k salary bump. Going A2A is not the norm at my bank

  • Associate 2 in IB - Ind
Jan 19, 2020

MM. Assuming you go from AN3 to ASO, it looks like:
June 30th: $40-50k sign-on
July 1st: bump from $95k to $150k base
August: $85-$125k AN3 bonus
January: $35k AS0 stub bonus

    • 1
  • Prospect in IB - Ind
Jan 19, 2020

Why does your sign on $ vary?

  • Analyst 2 in IB-M&A
Jan 19, 2020

This is roughly accurate, but the "sign on bonus" is really an "advance". So, in the above example, you should think of it as:

Asoc Stub for 6 months, you get:

  1. 50% of $150k base = $75k
  2. Stub bonus = $35k
  3. Sign on bonus / advance: $40k

So depending on how you want to think about the sign on bonus, you can look at it a few ways:

  1. You made $75k + $35k for 6 months, so that's $220 annualized (and think of the $40k as just an anomaly "sign on bonus")
  2. You allocate ALL the "sign on bonus" to your "comp" for 6 months, then you think you made $300k annualized for 6 months ($75+35+40)x2 = $300k. This is wishful thinking, as you will not make $300k your first full year, so probably not the right way to look at it.
  3. Probably the most accurate is to apply the $40k sign on bonus as an advance against your first 12 months, in which only 50% of it should be allocated to your first 6 months run rate (hence $75+$35+20 x2 = $250k annualized)

I'm guessing #3 is the right way to frame it, but I've never met anyone who had a better point of view. So, please chime in and state your case if anyone has more to say here.

  • Incoming Analyst in IB-M&A
Jan 20, 2020

Is this for MM as well?

  • Associate 2 in IB - Ind
Jan 22, 2020

It's all the same. The one caveat is that the "sign-on / advance" has a 1-year clawback like all other sign on bonuses. The stub bonus has the same clawback structure as an end of year bonus

  • Analyst 1 in IB - Gen
Jan 22, 2020
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