| Topic Name: |
Lots of misinformation |
| Message Name: |
Incoming Goldman analyst |
| Date Posted: |
05/28/2000 |
| In Reply To: |
Thanks for replying. I am currently a senior entering the analyst program at GS. I agree with everything you said, but am slightly disheartened by recent 'insider' news that DLJ "is not even considering a raise.' How could they get away with that? Using your theory, their associate comp. package is sufficient enought to satiate the firms long term interest...Goldman has a more amorphous incentive in its reputation and prestige. But, suffice to say, college kids, like me, are graduating with massive debt, and may accept a 'prestige' cut for a boost in salary...epsecially if we're coming from top undergrad schools where we can skimp on *firm name* and still make out pretty decently...I would view that as a major risk for Goldman...what do you think? |
| Message: |
The first thing I would tell you is that you are going to a very good firm, and to try to not focus on the details over which you have no control.
This business is such that no firm can afford to fall too far from the band that its competitors set. Having said that, compensation is often a zero sum game. A large part of your compensation is rooted in the year-end incentive, and so even if you spotted your counterparts $20,000 in base salary, it would still be very possible for you to exceed their total comp once the bonus numbers came in.
My personal suspicion is that with the dot-com field in disarray and investment banking firms recalibrating compensation, this coming recruiting season is likely to be one of the more competitive years in recent memory for seniors. If this turns out to be the case, firms will calibrate bonuses accordingly.
The bottom line is that given the gap between total compensation and the recalibrated base salaries, firms still have enormous flexibility. Since there is nothing you can do about it, wait and see where total comp falls out. If DLJ, Goldman and other top firms come out even marginally lower than the Street average, I'd be very surprised.
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