Going Deutsche

Posted by , May 02, 2006, 8:47am

deutsche.gifAccording to a reader, Deutsche seems to have confused a weekly pay scale with a bi-weekly payscale for part of its intern program and are now sending "oops" emails to prospectives:

Deutsche bank has downwardly revised** its compensation package for its summer analysts for the second time in the past week, despite having already signed offers for the entire class. Originally, compensation was set at $2500 per two weeks, for 40 hours per week, and any time above that was paid overtime (time and a half for 8-12 hours/day, and double time for 12+hours per day). This meant that college students working at the bank would be able to make over $30,000 during the 10 week program, assuming they worked the 80-hour standard IB workweek. On Saturday, two months after signing their initial contracts, the bank fedex-ed the class new contracts, stipulating that they would pay fixed salaries of $2,500 per week, or $25,000 for the summer. While less attractive, it was still a dramatically better pay package than the rest of wall street, an issue that many members of the class factored in when accepting their initial offers. Today, they emailed the class, stating that the $2,500 per week was a mistake, and that they would be reducing our salaries to $2,500 per two weeks. While the final offer is certainly better than working at the Gap, it still seems unethical, given the fact that several members of the class rejected offers at hedge funds and other organizations at least partially on the basis of DB's ridiculously high compensation for interns. Additionally, it places those analysts who signed summer apartment leases based on their recommendation of spending about 30% of your salary on housing" in an uncomfortable situation. They may want to think about how this makes them look as an employer to those prospective full-timers they are trying to court
Anyone else experiencing this?

In the meantime, we suppose the affected analysts could make like JPMorgan interns and start their own blog...

** "Downwardly revised" its compensation package? Next time we fire someone, we're just going to tell them they're being "de-listed."

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Posted in: Deustche Bank

Comments

Posted by Billy Bob, May 02, 2006 9:12AM

ouch

Posted by , May 02, 2006 9:38AM

Seriously? Summer interns complaining about comp? Please.

Posted by , May 02, 2006 10:11AM

2500 for two weeks is something I would not compain about as a summer intern.

Posted by Bulging Bracket, May 02, 2006 1:08PM

Banking interns get paid, unlike the rest of the peons in the US. If you're going to be working in Manhattan for the summer, 1250 a week is nothing, especially since they have a decent chance of paying state and local taxes, on top of ridiculous Manhattan prices. It should be theoretically possible for someone who doesn't have family money to take one of these positions (note, I said theoretically, since everyone actually hired is going to be the progeny of a major client, prospect, foreign potentate, society family, or of an MD at another firm getting around nepotism policies). This is very bad form from Deutsche, but what do you expect from ze germans?

They gave out offers offering overtime... hahahaha silly europeans.

Posted by , May 02, 2006 10:42PM

Do a lot of interns really get their positions through those contacts? I was assuming that most of these interns were hired on some degree of merit - although after meeting some of them I do begin to question...

Posted by , May 02, 2006 10:43PM

Do a lot of interns really get their positions through those contacts? I was assuming that most of these interns were hired on some degree of merit - although after meeting some of them I do begin to question...

Posted by danny, May 02, 2006 10:44PM

1250 a week is nothing, especially since they have a decent chance of paying state and local taxes, on top of ridiculous Manhattan prices....

what are you talking about, slick? I lived on 86th and first for more than two years on MUCH less than that. NY is expensive, but you can get by. skip the fancy gym. eat pasta 5 nights a week. kill the roaches in your studio yourself rather than pay someone. and best of all -- skip MARQUEE or CAIN. Drink in alphabet city/the village like i did.....

Posted by Mort Zuckerburg, May 03, 2006 2:35AM

If you wanted to make $60k per year, you could go work for the UN. You'd be doing good for the world and not have to work 80-100 hours/ week. Bankers are mostly well qualified, intelligent individuals that have other career options outside the industry. They join banks so that they CAN afford to go to Cain and Marquee. Not because of the pleasure they take in assembling excel spreadsheets.

Posted by , May 03, 2006 11:06AM

wow, talk about sense of entitlement. it's like watching one of those "sweet 16" brats whine about getting a $50k sports car. 60k/year for an INTERN?? C'mon. Whatever happened to doing something to get a foot in the door, or for the experience?

Posted by TM, May 03, 2006 10:14PM

I’m writing from Deutsche Bank to clarify the issues brought up on this and other blogs. Candidates who received offer letters in January were told their salary would be $2,500 paid on a semi-monthly basis and they would be eligible for overtime compensation. That is still what they will receive. We did not tell prospective interns they would receive time-and-a-half after 40 hours.

We decided to use a different method of overtime calculation for the 2006 summer program, so late last week we sent a letter explaining how overtime will be calculated to those who had accepted our offer. Unfortunately, the new letter erroneously described the salary as
$2,500 per week so we immediately sent notification out to correct the error.

To be clear, candidates are getting what we said they would get in our original letter – $2,500 semi-monthly plus eligibility for overtime – and that’s the information they should have
considered when reviewing our offer. We believe it’s a competitive offer from a firm with a lot of momentum, as evidenced by our record results announced today:
http://www.deutsche-bank.de/ir/en/?ghpnavigation=Investor_Relations

If anyone has any questions or concerns, please contact your DB recruiter to get clarification.

I hope that helps,

Ted Meyer
Director
Deutsche Bank – New York

Posted by levfinatic, May 03, 2006 11:40PM

You sort of have to pay $1250 a week for summer analysts when you're gunning for the cream of the crop at every Top 20 school.

As someone involved in recruiting, Also 95% of interns/FT get their positions through merit.

Posted by Undergrad, May 05, 2006 1:28AM

"wow, talk about sense of entitlement. it's like watching one of those "sweet 16" brats whine about getting a $50k sports car. 60k/year for an INTERN?? C'mon. Whatever happened to doing something to get a foot in the door, or for the experience?"

Sure, it sounds just like that, until you read the article above and consider the fact that these analysts accepted the offer at DB (perhaps over more prestigious, better-suited offers) because of the pay package. Should they have been skeptical? Sure, but that doesn't change the fact that they planned things and probably organized summer housing based on the expectation of 25-30k.

Posted by DBrocks, Jun 13, 2006 8:03PM

Happy to note compe policy has been changed BACK to the original, in a surprise change of heart.

-DB intern

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