Mailbag:
Supposedly many at BAC-MER are getting raises to their base compensation. It seems very widespread overseas, especially in Hong Kong and London. But back in the land of Barney Frank and Maxine Waters, less so. I’ve only heard this so far on the Merrill legacy side (at all title levels), though I would think it’d happen for the BAC-ers as well.
This, presumably, has something to do with this.
How about raises at Citi? Or, GWM or the JV? Any news there?
@1- have you heard any? than no.
vikram @2- shouldn’t you be the one to answer that?
raises confirmed by FT
@4- link?
FT quoted KL today saying “The mix is going to change to change to less variable pay and more salary”…
I can’t see anyone with an ounce of talent and the ability generate biz staying in the banking industry if this becomes the status quo. While a higher base reduces comp uncertainty, and can help defray the high cost of everyday living in NYC, the upside incentive to go out and kill what you are going to eat is out the window. All upside you generate will be skimmed to pay for management’s egregious blunders.
Sit back and watch the brain drain…without capable talent, properly incentivized, banks are nothing but vaults full of (increasingly) worthless, seignioraged fiat capital.
@6- thanks. I just thought you meant FT had confirmed this was actually happening, which it sounds like it is.
Would this likely include new analysts?
@8- don’t make me laugh.
Believe it or not new analysts may be the only ones willing to sell their soul for a job and the chance to gain experience at the wages banks will be willing to pay.
I think banks will see analyst classes as cheap labor; they have no family to support, no skill/experience to leverage (except maybe the dubious reputation effect of a top school affiliation), and few other high wage prospects (for now). As long some senior level patsy, lacking the Spartan apple sack to go out and make a fresh kill on their own and favors the Athenian comfort of sucking on the corporate teat, is willing to play kindergarten teacher to a bunch of greenhorn analysts, banks will mistakenly think that they have their employment model nailed down.
Most banks discount how difficult it is, and how much subtle experience is required, to incentivize a counterparty to divert incremental deal flow to a platform; and at a premium spread to boot. Like the water at Nino’s, “Money is Free”. Why would anyone be willing to pay a hard markup to a bank just cuz some smart ass kid picked up the phone? (Unless of course that smart ass kid is sporting a gravity defying rack and has a penchant for wearing mini-skirts to client meetings.)
The new paradigm….hub and spoke: banks as mere ATM machines; boutiques as the source of experience and value-added.
IBK VPs and Associates got around 10-15% raise. Not sure about above and below.
ML Equity associate here – 33% base rise plus a 100ml tub of vaseline to lube up for year end…
It’s true. VP to 150k~200k
It’s true. VP to 150k~200k
ML IBK associate here – 2nd & 3rd year associates up 33% to 120k. 1st years got a doughnut.
VP-5K raise to base pay.