What Is The Analyst to Associate Promotion Package?

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.

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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.

 

After 2 years as an analyst at my bank you will get the below:

Promotion Bonus (Aug, along with your 2nd year analyst bonus): $40k
Salary: $150k
Stub bonus (hits bank account in Feb): $40k

Associate pay for my bank:

A0/A1 Salary: $150k
A1 Bonus (Average): $100k

A2 Salary: $175k
A2 Bonus: $175k

A3 Salary: $200k
A3 Bonus: $225k

Side note, bonus is a mix of cash and stock (3 year vesting)

 

That's what I was wondering. I know across the street many banks have begun going from Analyst 2 -> Associate 1, versus Analyst 2 -> Analyst 3. I'd be curious to know if in these cases Associate 1s who get promoted right after Analyst 2 are actually clearing $250-$300K or if the bigger pay jump is still something that occurs at the end of one's third year.

 

Jeez this is an insane amount of money! I'm an intern at a BB but I can't even fathom making $300k at the age of 25. Do you really make much more going to PE? 

 

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