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TOP STORIESAnalyst bonuses to be nearly halved10 June 2008COMMENTS2nd year bonus only 140%? That is complete rubbish. The majority of front office grads at end of 2nd yr analyst get a low 6-FIGURE bonus. About 250%. Read all comments »Analyst bonus time is coming around again and it doesn’t look entirely pretty. Early figures from the one top US bank that’s remained unscathed by the credit crunch suggest first-year analysts will fare the worst. Meanwhile, for the first time ever it seems analysts are set to receive some of their bonuses in stock.
First of all, here are last year’s figures – courtesy of recruitment firm The Cornell Partnership:
Y1 analyst: base salary (excluding sign-on) £38.5k, average bonus 125%.
Y2 analyst: base salary (excluding sign-on) £45k, average bonus 140%.
Y3 analyst: base salary (excluding sign-on) £50k, average bonus 155%.
And here are the 2008 forecast figures for the ‘top firm’, courtesy of another recruiter which wishes to go unnamed:
Y1 analyst : base salary (excluding sign-on) £37k, average bonus 70%.
Y2 analyst: base salary (excluding sign-on) £44k, average bonus 100%.
Y3 analyst: base salary (excluding sign-on) £51k, average bonus 150%.
Given the 2008 figures are for the one house that’s sidestepped the credit crunch (who could that be?), they could paint an overly rosy view of reality. With this caveat, it’s notable that first-year analysts look set to lose out, while third years appear on track for another good year.
Logan Naidu at The Cornell Partnership says most analysts are expecting bonuses to be circa 25% down this year, which isn’t great considering they’re being worked harder than ever. “We’re getting calls saying three people have left my team, my staffer has unrealistic expectations and my workload is unbearable,” he says.
COMMENTSBB, Investment Banking / M & A, Wed 11 Jun 08Henry, I am not sure which bank you are working for...but I work for a leading BB firm and the bonuses can vary quite significantly from top performers and bottom performers. Last year bonuses for top quartile of senior associates were in low six figures GBP. This year is definitely more challenging than last year, and the bonuses are expected to be much lower for senior associates. So I am guessing have an expectation of 100-150k for a second year analyst would be very misleading. Add your comment »Henry, FX & Money Markets, Wed 11 Jun 08I am not a senior recruiter. I am writing these posts from a leading global investment bank. The admin slash tech people may be able to see that from my IP address. Anyway sounds like my bank caters for young people well and is meritocratic not hierarchical. There are plenty of young people in trading structuring and sales who maybe get lucky in making the right calls or on an understaffed desk taking on a huge project, which generates 10s of millions of P&L. Therefore them getting 6 figure bonuses regardless of seniority is how it should be. Thank god Im not at a bank which would suppress youngsters pay just because of their age or title despite them making millions. Otherwise I wouldnt have accumulated the glorious wealth I have thus far achieved. Add your comment »Kevin, Capital Markets, Wed 11 Jun 08I work for HSBC and the bonuses were crap compared to what is being said here. Seems like we are being ripped off yet being made to work just as hard. Associates get around 50% of base. Add your comment »DM, Sales & Marketing, Wed 11 Jun 08Mid-snr associate level (4y in work). Sales. I get 70k base + got 125k bonus last year, which from discussion with peers was ok. Would think that some TOP performers (prob trading exotics) could get significantly more than this, but in the larger banks there are usually (expressly documented or otherwise) compensation caps in place for everyone below the "career level" (VP, Director etc). Would be surprised if IN BULGE-BRACKET IB's there are MANY with 300k. Within extensive network of colleagues at this level i know of precisely none. Hedge fund / PE is different, but even then, there aren't many <5y experience types throwing it around at such shops.
Henry, FX & Money Markets, Fri 13 Jun 08Kevin, HSBC is ridiculous. I have a friend in DCM who got a £15k bonus after 1yr as an Associate. They move people to Associate after 1yr and give you good international ops, but this comes at a ridiculous price given how low the pay is.
Dee, Debt / Fixed Income, Sat 14 Jun 08Getting tired of IB and want to make a move. Anyone here knows what is paid at ratings agencies...Associate Director and Director levels + bonus Add your comment »Tired Banker, Capital Markets, Fri 27 Jun 08Has anyone actually got their bonus for this year yet? One investment bank in the news is doing it monday. Add your comment »Anon, Capital Markets, Sat 28 Jun 08American BB bank. Been Hit hardest by CC. 1st yr analyst DCM bonus = £20-34k (FACT) Add your comment »Anonymouse, Equities, Tue 08 Jul 08I'm sorry to report that Henry was recently asked to take a hike from his "bulge bracket recruitment agency", due to too much time spent fannying around on efinancial, and not enough time spent living parasitically off ibanks and talented individuals. Add your comment »jason, Accounting, Tue 15 Jul 08you greedy lepers should hand your bonues back, given that joe taxpayer is propping up your insolvent level 3 assets. Add your comment » |
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