@wantoknow: Other than Goldman, I've heard some banks are considering switching bonus season to year-end. Is this going to be a trend with all banks soon? What's the word on the treet?
If they really do change to a stub bonus does that mean analyst who do a two year stint will only get a bonus for 1.5 years or will bonuses be paid every 6 months to analysts
If they really do change to a stub bonus does that mean analyst who do a two year stint will only get a bonus for 1.5 years or will bonuses be paid every 6 months to analysts
I think this would be a dumb move in my opinion -- I could see many analysts taking an "extended vacation" after their 2nd year bonus in December or quitting earlier without the draw of a big bonus in the summer to keep them around.
No, they will be paid at year end. So if you leave in July like most analysts do, you're screwed.
...right, so either the analyst stays an extra 6 months so they work 2.5yrs to get bonus #3 (1 stub, 2 full) or (in my opinion a just as likely scenario) is that they leave after their first full year bonus. ie after 1.5yrs.
I could see them leaving after 1.5 years, but doesn't their contract end in July/August of year 2? Wouldn't they have to receive and accept a 3rd year offer?
Guys, this isn't that hard to figure out. The rest of the bank is already paid this way, so the analysts will just adhere to the same timing as everyone else has been doing for decades.
Guys, this isn't that hard to figure out. The rest of the bank is already paid this way, so the analysts will just adhere to the same timing as everyone else has been doing for decades.
The rest of the bank is already paid this way, because they are not on a two year contract like IBD but sign up to work indefinitely. So this is a legitimate question, and unless analysts get some kind of stub bonus after they leave in the summer, then it seems like they are getting screwed.
What I mean is look at the banks like Barclays and Merrill that put analysts on this schedule awhile back. In those cases the analysts don't sign on for a specific time frame, but in the end the time frame ends up being pretty much the same as it is at the banks where they do sign contracts....
What I mean is look at the banks like Barclays and Merrill that put analysts on this schedule awhile back. In those cases the analysts don't sign on for a specific time frame, but in the end the time frame ends up being pretty much the same as it is at the banks where they do sign contracts....
But fair point...
As far as I know, Merrill is not and has not been on that schedule. I know Barclays gives stubs, but my contract for Merrill specifically stated a 2 year commitment, with bonuses paid in July.
Pays analysts year end. but the actual payment comes in Feb end . so to Patrick's point, you will have to atleast stick to Feb, probably till March (before it hits the bank) and not just peace out in Dec. Even associates at most BB's, who get their bonuses paid year end have to wait till Feb / March for it to hit the bank as far as I know (correct me if I'm wrong)
I may be wrong here. I have never worked at Merrill, but I just remember an analyst on my desk last year (S&T) told me that Merrill was paying analysts stubs....
I may be wrong here. I have never worked at Merrill, but I just remember an analyst on my desk last year (S&T) told me that Merrill was paying analysts stubs....
But again, I may be entirely wrong here....
I don't think that they would have different payout structures for S&T and IB but I know for a fact that in IB the first year analysts received their bonuses in July. I honestly have no idea how they did it in S&T. That could be true.
It sucks but only by comparison to previous years. Still more than most recent grads will be getting. I'll be thrilled to get a 20k yearly bonus in this environment; let alone having a job!
I know for a fact that MerrillER, S&T, and AM pays stub bonuses. IB is the only on that doesn't for their analysts stubs.
As I mentioned in another post, these three positions that you listed above do not require you to leave after two years, but you can work there indefinitely. So, it does not make sense to pay them bonuses in July; that's why they get stub bonuses after 6 months.
The question here is about IBD bonuses. If they are getting stub bonuses, then does this mean they they will only receive 1.5 years worth of bonuses for two years of work?
For what it's worth, i heard from a 2nd year analyst buddy (Class of '07) that their bonuses were between 15k and 30k pro-rated on 5 or 6 months. Ouch.
@bkm125 -- are you sure about those numbers? $30,000 for an analyst stub bonus would be the same level as last year.
Last year associate stubs were $45,000, so analyst stubs came in below that, probably $25-30,000. So to get that this year would mean no decrease in pay.....I don't buy it....
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What is this "bonus" you speak of?
Goldman anaylsts are being paid at the year-end now. So they will get a stub bonus for the half of this year since the last bonus.
Bump...
@wantoknow: Other than Goldman, I've heard some banks are considering switching bonus season to year-end. Is this going to be a trend with all banks soon? What's the word on the treet?
I don't think that anything is ever set in stone until it happens...
If they really do change to a stub bonus does that mean analyst who do a two year stint will only get a bonus for 1.5 years or will bonuses be paid every 6 months to analysts
I think this would be a dumb move in my opinion -- I could see many analysts taking an "extended vacation" after their 2nd year bonus in December or quitting earlier without the draw of a big bonus in the summer to keep them around.
No, they will be paid at year end. So if you leave in July like most analysts do, you're screwed.
...right, so either the analyst stays an extra 6 months so they work 2.5yrs to get bonus #3 (1 stub, 2 full) or (in my opinion a just as likely scenario) is that they leave after their first full year bonus. ie after 1.5yrs.
You'll essentially get 1.5 bonus; there will not be a 2nd full bonus.
Shady as f-uck...
I could see them leaving after 1.5 years, but doesn't their contract end in July/August of year 2? Wouldn't they have to receive and accept a 3rd year offer?
Guys, this isn't that hard to figure out. The rest of the bank is already paid this way, so the analysts will just adhere to the same timing as everyone else has been doing for decades.
The rest of the bank is already paid this way, because they are not on a two year contract like IBD but sign up to work indefinitely. So this is a legitimate question, and unless analysts get some kind of stub bonus after they leave in the summer, then it seems like they are getting screwed.
What I mean is look at the banks like Barclays and Merrill that put analysts on this schedule awhile back. In those cases the analysts don't sign on for a specific time frame, but in the end the time frame ends up being pretty much the same as it is at the banks where they do sign contracts....
But fair point...
As far as I know, Merrill is not and has not been on that schedule. I know Barclays gives stubs, but my contract for Merrill specifically stated a 2 year commitment, with bonuses paid in July.
Pays analysts year end. but the actual payment comes in Feb end . so to Patrick's point, you will have to atleast stick to Feb, probably till March (before it hits the bank) and not just peace out in Dec. Even associates at most BB's, who get their bonuses paid year end have to wait till Feb / March for it to hit the bank as far as I know (correct me if I'm wrong)
I may be wrong here. I have never worked at Merrill, but I just remember an analyst on my desk last year (S&T) told me that Merrill was paying analysts stubs....
But again, I may be entirely wrong here....
I don't think that they would have different payout structures for S&T and IB but I know for a fact that in IB the first year analysts received their bonuses in July. I honestly have no idea how they did it in S&T. That could be true.
It's very simple to calculate..what's 50% of 0?
Just kidding..I would assume anywhere between the range of 5 and 15K.
Assuming 30K is top bucket for every other analyst on the street by this summer.
Bonuses on a per employee average are down 50%. So that may mean analysts still get something.
We're about to enter a Great Depression. Don't you want a president who's already dressed for it?
Basically for the BBs, a stub bonus after taxes is equivalent to dog sh!t.
http://dealbreaker.com/2008/12/bonus-watch-08-gs.php
[quote=HerSerendipity]http://dealbreaker.com/2008/12/bonus-watch-08-gs.php[/quote]
Yea I just read that; bonuses are indeed dog sh!t.
Roughly $5k after taxes...holy hell...
It sucks but only by comparison to previous years. Still more than most recent grads will be getting. I'll be thrilled to get a 20k yearly bonus in this environment; let alone having a job!
Think it could go any lower than this?
I know for a fact that Merrill ER, S&T, and AM pays stub bonuses. IB is the only on that doesn't for their analysts stubs.
As I mentioned in another post, these three positions that you listed above do not require you to leave after two years, but you can work there indefinitely. So, it does not make sense to pay them bonuses in July; that's why they get stub bonuses after 6 months.
The question here is about IBD bonuses. If they are getting stub bonuses, then does this mean they they will only receive 1.5 years worth of bonuses for two years of work?
For what it's worth, i heard from a 2nd year analyst buddy (Class of '07) that their bonuses were between 15k and 30k pro-rated on 5 or 6 months. Ouch.
True - Goldman bonuses were about 10k (lowest) - 30K (highest) for a half year's work. After tax that's only like 5K - 15K.
@bkm125 -- are you sure about those numbers? $30,000 for an analyst stub bonus would be the same level as last year.
Last year associate stubs were $45,000, so analyst stubs came in below that, probably $25-30,000. So to get that this year would mean no decrease in pay.....I don't buy it....
Soluta ab vitae quos quibusdam unde molestiae. Nisi ipsam repellendus doloremque. Non quo quasi illo perferendis consequatur suscipit est.
Tempore aliquam odio deleniti sint nihil commodi labore expedita. Qui at enim in tempora ex laborum. Reprehenderit est tempore consequuntur ut qui mollitia. Est omnis impedit nostrum et. Ad laborum esse doloremque aperiam libero.
Praesentium itaque sequi voluptas assumenda laboriosam dolorum hic. Incidunt vel ad qui recusandae enim nihil. Architecto distinctio et porro magnam similique quis. Illum tenetur distinctio tenetur et nesciunt ut illum quia. Ea dicta qui aut quia. Dolore est ut aut odio.
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Vel ea quas deleniti non. Atque ut aliquid quae. Explicabo rerum odit neque sit. Voluptatem autem nisi ratione. Sed dolor perferendis aspernatur eligendi assumenda aut laboriosam vel. Non vel perferendis fugit perferendis facilis. Reprehenderit earum qui fugiat qui autem eum maiores.
Eos eum nam esse incidunt dolorum nesciunt. Numquam dolorem nisi exercitationem qui ut ut magni. Eos aperiam neque qui sed eligendi tempore.
Et quo nobis et corporis. Dolor et quaerat blanditiis voluptas incidunt dolorem.