Another look at this year's analyst bonuses

15 September 2009

1 minute read

Another look at this year's analyst bonuses

Now that the dust has truly settled on this year's analyst bonuses, we've had another look at what exactly happened back in July. The answer, based on broad averages for payouts in IBD, appears to be as follows -

Analyst 1: Base - 45k, bonus 10-20k

Analyst 2: Base - 50k, bonus 20-30k

Analyst 3: Base - 57k, bonus up to 60k

We're waiting for additional information on other business areas (and if possible particular institutions) and will publish it if and when it's forthcoming.

In the meantime, investment banking-focused recruiters say the general feeling is that analyst bonuses this year were down further on the dire payouts of 2008, although the reduction was in line with expectations.

However, one says there's peevishness in the analyst ranks: "There was a huge difference between payments for top ranked and mid-ranked analysts and a lot of people felt they were unfairly ranked in the middle.

"There's also a feeling that they're not getting paid much for the number of hours they work," she adds. "I know the market's down, but these guys are really busy."

AUTHORSarah Butcher

Global Editor

pr
pres
18 September 2009
200k for associate - hahaha
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si
simples
16 September 2009
analyst 100k
assoc 200k
vp 300k
dir 400k
md 500k plus
in most cases not too far from the mark?
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yo
yowyow
16 September 2009
Anon makes a good point: big diff between bulge bracket bank and 3rd tier, particularly in client facing roles (traders bit different as any worth salt will insist on an aprx %age of PnL). So in sales/cap mkts etc top tier banks will always play the franchise card, ie it is easier to make x at this shop because of the name. Which isn't wholly unreasonable.
Analyst bonuses get a lot of airtime, and i'm sure that at top of market, in some banks they were paying up > 100 per cent salary, but right now there is nochance of this. I'd say now 10k is good for 1st yr. After 3y you become an Assoc at which point you should be on 60k base plus up to 100k bonus. After that you reap what you sow: anywhere from the 150k bonus for a Director of which Anon speaks, up to 500k plus. Interesting thing these days is HOW we get paid, ie stock, deferral, clawback etc etc.
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dd
dddd
16 September 2009
Why the interest in 'average' bonuses? They are based on such a broad spectrum that they are pretty much useless as a guide to any one individual's situation. And why would an analyst who isn't top ranked give a headhunter, or anyone else who cares to ask, anything other than an inflated figure when pressed on their ranking and bonus.
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An
Anon
16 September 2009
At the Analyst level, the salary/bonus are pretty small in absolute value so it really depends on your boss/department. When I started my career at Dresdner I remember that one of my colleagues got a bonus of 13k whereas I got 40k for the same level of seniority. Another anecdote, back in 2007 at Calyon, the CPPI structuring/sales desk was paying 200k of bonus at the Analyst level, much more than Goldman Sachs M&A bankers. I guess the difference between top and 2nd tier house is very small at the beginning of your career. The gap is widening massively when you reach the VP/director level. For example a good Director in ECM/DCM/M&A at a top tier house could easily pack 500-700k of bonus (even now). At a 2nd Tier House (i.e. Unicredito, ING, Calyon, Lloyds) he will be lucky to get 150k...
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