Asking for expected bonus numbers - taboo?

Just wondering if its okay to ask HR about expected bonus numbers for next year, or if its frowned upon. I have an offer from a mm bank outside of new york and wanted to get a better idea of what to expect should I accept. Would contacting one of the junior bankers I met during interviews be more appropriate?

I remember something like this being up a couple of weeks ago but I cant seem to find it ...

 

You may want to get feedback from a bunch of people first... but you generally have to play it by ear. Either ask the person who you're negotiating your comp package with, or just ask HR. Just don't be wierd about it. Just say something like "I know bonus is discretionary and based off of a variety of factors, but I was wondering what the general range is of what someone in my position would be receiving."

Thats the best way and I think its a fair question. A large portion of total comp is bonus, no one is sweating it out all year for that fat base salary and 10K bonus, so you should have an idea of what total comp will be.

 

Her best bet is to befriend some of the analysts during her summer gig and when the inevitable discussion about bonuses comes up she can casually ask, "what is the typical range for the analysts last year"? or "are the analysts here usually paid above or below market?"

While she has to be careful not to seem too intrusive, asking this is context with an analyst you've worked with all summer in my opinion is a totally legitimate question. Plus, you are likely to get a more honest / detailed / better answer than if you asked your "boss", like a VP or associate...they would likely just say that their bank is at market or above market.

Good Luck, Patrick

 

And she should keep in mind that bonuses last year were pretty bad in general.

"You stop being an asshole when it sucks to be you." -IlliniProgrammer "Your grammar made me wish I'd been aborted." -happypantsmcgee
 

It hasn't really been a big deal for me. I asked when bonuses were paid out out of curiosity and one of the analysts just volunteered how big his bonus was this year and what he's expecting next year. Since generally most analysts get the same, I don't think they mind too much about you just outright asking.

-------------------------------------------------------- "I do not think there is any other quality so essential to success of any kind as the quality of perseverance. It overcom
 

I asked the question when I accepted my offer, but I can't say i'd recommend it in hindsight. If you're going to ask, I wouldn't ask what the range could be. I'd phrase it as:

As a reference point and to assist with my financial planning, can you tell me approximately what prior 1st year analysts received?

Lot harder to B.S. around the question when phrased that way.

CompBanker’s Career Guidance Services: https://www.rossettiadvisors.com/
 
bulge4lyf:
I wouldn't ask it at a BB but I asked it at a MM shop and they didn't mind at all. They knew I was comparing them to several other shops so wanted to emphasize that I would be paid the same.

If it's a smaller shop then it seems acceptable, but still unnecessary. If you do it, phrase it how CompBanker outlined.

Regards

"The trouble with our liberal friends is not that they're ignorant, it's just that they know so much that isn't so." - Ronald Reagan
 

This is a dicey question. The best way (as CompBanker mentioned) is to ask what they have given in the past. That way they can't dodge it with "it's performance and market based, and not guaranteed", and you also don't look like you have $ signs in your eyes.

- Capt K - "Prestige is like a powerful magnet that warps even your beliefs about what you enjoy. If you want to make ambitious people waste their time on errands, bait the hook with prestige." - Paul Graham
 

I asked the question after receiving my first offer. I think it's completely understandable for a person receiving a job offer to want a clear idea of what their all-in comp will be. So much of a bankers yearly comp is in their bonus, it seems completely reasonable to ask.

I just basically asked if they gave any kind of guidance for the % of salary that they generally try to pay out in bonuses, at whatever level you are (analyst, associate, etc.).

 

Absolutely ask, just be tactful about it. Also, given the current market conditions, it's also probably good advice to plan to live within your base salary regardless of what they tell you.

There have been many great comebacks throughout history. Jesus was dead but then came back as an all-powerful God-Zombie.
 

Thanks.

One other question. The press was talking about how Goldman might not pay bonuses this year. Would this apply only to bankers? Would IM's bonuses be more secure because the fee revenue is more stable?

 
prnz:
Right now I'm thinking of having my rent be 30% (12/40) of my pre-tax income. If my bonus was zero it would be uncomfortable but I shouldn't have to eat into my savings.
30% of your pre-tax income is a bad idea. I wouldn't go more than 30% of your after-tax income for rent/housing. 30% of your pre-tax income is 50% of your after tax income.
-MBP
 
manbearpig:
prnz:
Right now I'm thinking of having my rent be 30% (12/40) of my pre-tax income. If my bonus was zero it would be uncomfortable but I shouldn't have to eat into my savings.
30% of your pre-tax income is a bad idea. I wouldn't go more than 30% of your after-tax income for rent/housing. 30% of your pre-tax income is 50% of your after tax income.

Depends where you are. That's not necessarily practical for entry-level people in the greater New York area, especially on a salary-only basis.

There have been many great comebacks throughout history. Jesus was dead but then came back as an all-powerful God-Zombie.
 
Kenny_Powers_CFA:
manbearpig:
prnz:
Right now I'm thinking of having my rent be 30% (12/40) of my pre-tax income. If my bonus was zero it would be uncomfortable but I shouldn't have to eat into my savings.
30% of your pre-tax income is a bad idea. I wouldn't go more than 30% of your after-tax income for rent/housing. 30% of your pre-tax income is 50% of your after tax income.

Depends where you are. That's not necessarily practical for entry-level people in the greater New York area, especially on a salary-only basis.

On a base of 75K, you would take home at least 50K right? Which is a little over 4K a month. So I would say you should spend 1200-1300$ on rent. $1500 at the most. $2000 sounds completely crazy to me.

-MBP
 
Best Response
manbearpig:
Kenny_Powers_CFA:
manbearpig:
prnz:
Right now I'm thinking of having my rent be 30% (12/40) of my pre-tax income. If my bonus was zero it would be uncomfortable but I shouldn't have to eat into my savings.
30% of your pre-tax income is a bad idea. I wouldn't go more than 30% of your after-tax income for rent/housing. 30% of your pre-tax income is 50% of your after tax income.

Depends where you are. That's not necessarily practical for entry-level people in the greater New York area, especially on a salary-only basis.

On a base of 75K, you would take home at least 50K right? Which is a little over 4K a month. So I would say you should spend 1200-1300$ on rent. $1500 at the most. $2000 sounds completely crazy to me.

Without getting into the never-ending debate about living in New Jersey or the outer boroughs, $1400/month is pretty much the floor in Manhattan, and even that's going to be a stretch if you want to live alone in a studio. In order to do better than that you usually need to either find a larger (>2 people) shared place or get a particularly good deal (both of which are possible but may or may not be an option for this person).

I also think your per-month take-home is a little high.

There have been many great comebacks throughout history. Jesus was dead but then came back as an all-powerful God-Zombie.
 

if you're smart, ask the a first year or two that you met or interviewed with

in my opinion, seniors would be slightly off-put (stuck in the ivory tower)

first years will understand that you want to get bottles a few times a year without going broke

 

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-MBP
 

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