2010 Investment Banking Associate Bonuses at BB

I think those numbers are a bit high for a first year Associate and I believe 2007 had a higher payout than 2006.

thats a big high ...

lol 2 people is the general consensus..you should not be doing finance related work.

i think your numbers are higher by about 10-15%.. first yr top assoc expected to be around US$190 -200k at BB. Biggr Q is how much will be in cash vs. stock. anyone heard anything?

How long do you have to hold the stock for? Can you sell it right away?

From last year's stock payouts to associates, the stock vests fully in about 3 yrs

these numbers are way too high

If these are top end bonus then they maybe correct. I am hearing median all-in class of 2008 numbers of 280 and class of 2007 median of 330. Wouldnt be surprised is top end is 50-60K above median.... so a bit below 2006/2007 comp levels but the real issue this yr is deferred comps which i have heard will be a much bigger portion of comps

given the recent announcements by BAC and JPM, i highly doubt that this year we will see numbers close to 2007. if we do, it will be because of the unvested stock component which you can pretty much ignore unless you plan on spending your entire working career at the bank. funny money...

3 years = entire working career? Can you please explain to a noob such as myself?

the stock grant every year has a 3 year vesting so in 3 years you will be vested on the stock received this year but you will not be vested on the stock received from now till then. in other words you will always be unvested on a very large portion of your income - especially considering the increase in income from associate to vp to director.

We don't get our number for a few more weeks, but those ranges seem high. The rumor mill internally has suggested something just short of 2007, but with MUCH more stock and less of a normal distribution between ratings buckets. I'd personally be very happy even if those ranges were 25% too high.

25% lower sounds probably about right for all-in for the median bucket. i think we will see a top bucket that is pretty high but with very few people in it and a lot of dispersion with some people getting really hosed. also this year will be see a big difference across firms - a lot of the middle markets and boutiques did not have that good of a year and will def not keep up pace on the top buckets with the bulge brackets. the median bucket might be similar. this stock shit blows really bad...

Just curious, but can the OP comment on the source of those initial ranges?

Did it come from your staffer? Comment by an MD? Another Associate? Rumor mill feels exceptionally quiet this year. Am wondering about the potential source credibility.

What would happen, lets say, if you were fired before the stocks vested? No money?

Probably nothing would happen to the stock. You'd own it just the same, and you'd have to wait to liquidate just the same.

if you are laid off it vests immediately, if you are fired for a cause you lose it, if you quit before it vests you lose it. also you pay taxes as it vests, even though you may be restricted from selling it which is always fun...

That is funny. I guess the plus side is, if the stock goes up, you make more money.

Hearing same thing for MS, ranges follow (supposedly from insider). Also heard Centerview got numbers that were inline with below. Most JPM gets numbers this week.

Class of 2008 - 190, 255, 280, 305

Class of 2007 - 230, 315, 340, 370

Class of 2006 - 300, 405, 430, 475

Was not able to confirm Centerview.

can anyone tell me what happened to assoc. joined in 2009 summer? how is their half-year bonus like in GS/MS/JPM please?

Just heard for JPM Assoc: 08 - 270 top, 136k cash, 34k deferred bump to 110k base 07 - 310 top, bump to 120k base

These are all in.

Heard JEFF assoc 0 got 40k stubs.

JEFF = Jefferies?

Are people at JPM pretty happy with those numbers? Seem pretty solid, though who knows what the 2nd highest rating bucket got relative to these numbers.

Why would they defer just $34K. I mean, I don't think many people are going to stick around slaving away just to earn their incremental $34K pre-taxes if they just got $136K cash and have a healthy base salary.

Ppl seem pretty pissed in my group. Our numbers were nothing close to MS's numbers. I'm a 2nd year associate and got a salary bump to $160K but bonus was $160k of which $32k was deferred. The deferred amount is the amt given in stock, think it's an appearance thing. I agree pretty small number, worse they gave analyst stock too which totally doesn't make sense.

Sh*t. That's rough if they're taking the UK tax impact out on U.S. employees. I guess it was unavoidable, but hate to see it happen to people at our level.

If you get other data points from coverage groups over the next few days, would you mind posting?

Heard that in Asia IBD for JPM, Assoc 1 (class of 08) full yr bonus top end is just shy of US$200k (stock component 20%). Add to base of US$115 - 120k (give or take fx rate), total comp = ~US$315k +

There are expected to be wide variations within brackets

Anyone else with data points?

To be above: yeah ... In terms of pay, Asia IBD > US IBD > London IBD

And that's not even adjusted for the lower taxes in Hong Kong and Singapore. If you adjust for taxes, the difference is even more stark.

Do all groups of the IB get the same bonus for each tier? Or for example, are Debt Capital Markets bonuses less than M&A bonuses?

Rumor has it that MS bonuses are a lot lower than expected. Can anyone confirm?

Can't confirm, but over at Dealbreaker, Morgan Stanley folks seem to be pretty pissed based on the comments they've posted. Tough to tell how authentic the commentators are over there though.

It's really hard to imagine that they could pay 50% of the bonus that JPM paid. Can't remember a time with that much disparity between investment banks in the same general tier.

Got an email from my buddy at Citi that they got screwed.

So it sounds like Goldman, Morgan and Citi got screwed? Did anyone get paid well besides JPM?

I'm surprised Goldman would get screwed. Banana when do you get your numbers?

Few more weeks. Apparently numbers have been approved internally, but are subject to Board approval.

Ratings have already been communicated.

Anyone have Citi numbers? And when do GS numbers come out?

Anyone have any perspective on what the elite boutiques will pay?

So, was it so bad that no one can bear to reveal their bonuses if they don't work for JPM?

What are well-know MM banks like HLHZ, Jeff, Piper, HW paying (all-in) for associates? 95-100 base + 100 bonus in the right ballpark are?

Go to your own shitty MM thread. This is for BB's only.

What were Goldman's numbers this year?

Anyone w/ more insight on Associate numbers across the street?

I think BAML and MS were the same for S&T and also research (I talk to research guys alot)

Anyone know numbers from GS, CS, Citi, DB, Barcap, UBS and CS? In line with JPM and MS?

Great thread. Anybody know how Associate bonuses in Equity Research look like this year at BB in NYC? I know we have our own forum but its dead over there.

Thanks troll, may I have another? Sorry about pushing your buttons I know it sucks working at a shitty MM shop like yours. Keep your head up champ!

just to comment on the UK tax issue. I read that DB is considering pulling out its HQ from London because of it. Maybe UK will re-consider its harsh treatment to bankers compensation.

You're only pushing your own buttons loser, I'm having quite a good time slamming you punk.

Be nice. 1styearanalyst is probably feeling irritable because his bank received extraordinary assistance and he had a weak year to boot so he's getting less than the folks at the MMs.

slammaster - please post 1styearbanker's name and where he works please

MS associate 40k stub 1st year vp is 375-600k 2nd year asso is 200-300 3rd year asso is 300-400

reliable

I have a few of these bastards names. May be able to PM you on this, but I may publish in a post. I'm working on getting a few more. Could be legal action too, from a few PMs I got.

Please keep us in the loop.

I may not be able to due to legal ramifications. But it will all come out.

Does anyone know about the bonuses at BAML and WF specifically? I am interested especially after reading this article.

"Bank of America this year changed the way it awards bonuses to investment bankers, in an attempt to tie pay more closely to performance. The bonuses that Bank of America will award Monday will generally be about 25 percent cash and 75 percent tied to stock, said spokesman Bob Stickler.

The higher-ranking bankers will be paid the least cash, with some getting as little as 5 percent cash.

Also this year, the bank put "clawbacks" on employees in global markets and global trading, provisions that allow for reclaiming bonuses if failings surface later.

Stickler said that, on average, investment banking bonuses for 2009 performance will be higher than those awarded for 2008 performance, a down year. But they will be lower than most previous years.

He declined to comment on the size of the bonus pool, though some reports, citing unnamed sources, have said the bank will pay investment-banking employees from a bonus pool of about $4.4 billion, or an average of $400,000 each. "

"Employees at Wells Fargo won't get their bonuses until next month, but the bank says that its total pool for bonus and commission pay is up about 66 percent over last year.

According to its latest earnings report, Wells had $8 billion in its pool for total bonuses and commissions, up from $4.8 billion last year for the combined bank. Those numbers include year-end bonuses for bankers as well as commissions for mortgage consultants and stockbrokers. However, some of that money has already been paid out, because commissions are awarded on a monthly or quarterly basis.

Wells reported a profit of about $8 billion in 2009, counting preferred dividend payments."

http://www.charlotteobserver.com/business/story/1234402.html