Going to be working at a big asset manager starting in the summer. They told me that my first year bonus is pro-rated to 5 months and it should increase from there. Does this mean that my bonus on December 31 of 2018 is going to be the same as someone's normal year 2 bonus or is it going to be like a 1.5 year bonus?
Mod Note (Andy): #TBT Throwback Thursday - this was originally posted on 6/21/12.
At the beginning of my analyst program i had a fixed-notion of what it takes to become one of the top-ranked analysts in my class, pocket top-bucket bonus and move on to a prosperous future in finance. I wasn't alone in believing that building up great modeling skills, understanding corporate finance and mastering the three financial statements would get me there. I still think that those skills will impress your deal teams and provide the basis for a career in finance, however they're not the only way to excel.
In fact, during my time in investment banking, I worked on a lot of deals with the same analyst who didn't master any of the three skills mentioned above, yet moved on to receive top-bucket at year-end. While financial analysis skills impress associates, the following three skills impress senior bankers. Since senior bankers rank higher in the banking hierarchy, the previous mentioned analyst became top-ranked despite below-average financial analysis skills.
It's that time of year and bonus numbers are starting to roll in. For the greater good of the WSO community feel free to share what you've been told or have heard (credible only, no BSD dreams of grandeur please). While the year-end WSO report is a great resource, it's quite valuable to get numbers as they are fresh in people's minds. Hoping for a nice bump in discretionary income and not just debt relief...
I'm 34, started in financial markets search 11 years ago about a month after finishing school. One exciting but surprising trend i have seen since the financial crash, buy especially this year,2014, is that Senior Equity Analysts at well known boutiques had are making more money than veterananalysts, Associate analyst compensation is still higher at the . This explains why so many individuals start their careers at the bulge brackets than move on to boutiques or the buyside. Boutiques tend to have lower turnover as well, much lower. So kids, maybe you should reconsider starting a career in research at the bulge brackets.
I'm a second-year analyst, and I'm pretty sure I want to work in Private Equity after my 2nd year is finished. What I've heard is that it's impossible to get jobs in PE if you didn't get top bonus. I feel like I have as good a chance of getting it as anyone, but I'd like to have more assurance.
I'm thinking of reaching a bonus-sharing agreement with my manager. He gets a X% cut of my bonus in exchange for putting me at the top. I figure I'll at least break even, and possibly get more money, in this arrangement. Even though I'm giving away a cut, I'm getting a larger bonus.
I know that bonus-sharing is a pretty typical way to ensure top performance reviews and advance one's career. The questions are:
1. What's the current market value of X? 15%? 20%?
Don't want to turn anyone off but the banking pay will be rubbish for the next 3 years at least especially with the LIBOR and interest rate swap scandals - bonuses aren't going to be great. That said, at the junior level you will be less affected.
Do you think more people will start looking for alternative careers, given that many go in to pay off debts/earn lots of money etc? What will they (you) choose? Or will they (you) stick to IBD because of the non-monetay reasons (??)