2010 Wall Street Comps Survey

8/3/2019 2010 Wall Street Comps Survey

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Fifth Annual Investment Banking Compensation Survey

2010

www.WallStreetComps.com

WallStreetComps.com 2006-2011

CompsComps

WALL ST

CompsComps

WALL ST


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WallStreetComps.com 2006-2011 1

TABLE OF CONTENTS

Disclaimer

FAQs

Information on Participants

Represented Banks

Overview of Bonuses 2009 / 2010

Regression Analysis

2010 Bonus

Distribution by Banks

Distribution by Location

Distribution by Groups

Distribution by Title:

Associate 0

Associate 1

Associate 2

Associate 3

Vice President 1

Vice President 2

Vice President 3

Senior Vice President

2

3

4

5

6

8

9

10

11

12

13

14

15

16

17

18

19


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DISCLAIMER

WallStreetComps.com was created to keep investment bankers informed about the compensation

trends in the industry.

Please be advised that the data gathered in this report were submitted by investment bankers on a

voluntary basis and without consultation of their respective employers mentioned herein.

Although the results are screened for obvious mistakes or typos, WallStreetComps.com cannot

guarantee the validity of the information presented. However, due to the nature of this report and

the way data were entered, we are confident the information in this report is valuable and

accurate.

The information is being provided freely and none of the banks or anyone else connected with

WallStreetComps.com in any way whatsoever can be responsible for inaccurate information.

This is a copyrighted report. It is distributed for free.

If you have any comments, questions or suggestions on how we can improve this survey for

next year, please email us at [email protected]


4/21


FAQS

What is WallStreetComps.com?

WallStreetComps.com was created by a group of former investment bankers to keep peers

informed about the compensation trends in the industry. The resulting compensation report is

free and is a way to share information with peers.

How is data gathered?

The data gathered in this report were submitted by investment bankers on a voluntary basis.

Individual submissions are anonymous and kept strictly confidential. No personal data is required

and the data is used on an aggregated basis only.

How reliable are the data?

Although the results are screened for obvious mistakes or typos, WallStreetComps.com cannot

guarantee the validity of the information presented. However, due to the nature of this report and

the way data were entered, we are confident the information in this report is valuable and

accurate.

Which currency do you use?

All amounts are in U.S. dollars. We have asked each participant to convert his/her bonus (if it

were not received in USD) by using the following exchange rates:

1 = $1.30

1 = $1.55

These were the approximate exchange rates on December 1, 2010.

What is Associate 0?

When an MBA student is hired as an Associate following her graduation, she will generally be an

Associate for 17 months (from August of graduation year until December of the following year).

We define Associate 0 as the first 5 months of Associate 1, at the end of which a Stub bonus is

paid.

Why cant I see the name of my firm even though I participated in the survey?

If you were the only participant in your firm, we have decided not to disclose the name of that

firm to protect your privacy.


5/21


INFORMATION ON PARTICIPANTS

We have received a total of 358 responses. The distribution of responses is as follows:

Distribution by Employer

TitleLarge U.S.

Banks

Large European

BanksBoutiques Other Total

Associate 0 28% 24% 20% 28% 100%

Associate 1 43% 7% 4% 46% 100%

Associate 2 62% 10% 10% 19% 100%

Associate 3 30% 22% 9% 39% 100%

Vice President 1 43% 13% 0% 43% 100%

Vice President 2 43% 29% 0% 29% 100%

Vice President 3 24% 14% 5% 57% 100%

Senior Vice Pres ident 27% 9% 5% 59% 100%

Managing Director 0% 0% 0% 100% 100%Total Population 132 54 24 148 358

Distribution by Group

Title M&AIndustry

Coverage

Fin. Sponsors /

Lev. Fin.Capital Market Other Group Total

Associate 0 36% 48% 16% 0% 0% 100%

Associate 1 32% 57% 0% 0% 11% 100%

Associate 2 24% 57% 5% 10% 5% 100%

Associate 3 35% 39% 4% 0% 22% 100%

Vice President 1 13% 61% 4% 13% 9% 100%

Vice President 2 36% 50% 0% 7% 7% 100%

Vice President 3 29% 48% 5% 0% 19% 100%

Senior Vice Pres ident 23% 55% 5% 14% 5% 100%

Managing Director 0% 0% 50% 50% 0% 100%

Total Population 100 184 20 20 34 358

Note: We closed the survey on March 20th 2011. All answers submitted after that date were nottaken into account in the survey.


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REPRESENTED BANKS

Bank Category

Bank of America Merrill Lynch Large U.S. Bank

Barclays Large U.S. Bank(*)

BNP Paribas Large European Bank

Citigroup Large U.S. Bank

Credit Suisse Large European Bank

Deutsche Bank Large European Bank

Evercore Partners Boutique

Goldman Sachs Large U.S. Bank

Greenhill Boutique

HSBC Bank Large European Bank

Jefferies Boutique

JPMorgan Large U.S. Bank

KPMG Other

Lazard Boutique

Moelis Boutique

Morgan Stanley Large U.S. Bank

Oppenheimer Other

RBC Capital Markets Other

UBS Large European Bank

Wachovia Other

(*) Barclays has been classified as a U.S. Bank although its ultimate parent company is UK-based because it representsthe former Investment Banking U.S. operations of Lehman Brothers.


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OVERVIEW OF BONUSES 2009/2010

Bonus by Year

Bonuses

2009 2010

Minimum $0 $0

Maximum 1,700,000 950,000

Average 268,144 205,465

1st Quartile 100,000 75,000

2nd Quartile (Median) 200,000 170,000

3rd Quartile 375,750 293,750

4th Quartile 1,700,000 950,000

Number of Responses 320 358

Number of Banks 20 20

2010 Bonus, Base and Percentage of Bonus paid in Stock, by Title and Quartile2010

Bonuses Average

1st Quartile 2nd Quartile 3rd Quartile 4th Quartile Base Bonus Stock Bonus

Associate 0 $35,000 $40,000 $42,000 $73,000 $101,000 $40,280 2%

Associate 1 105,000 125,000 150,000 225,000 118,036 127,321 13%

Associate 2 145,000 160,000 190,000 260,000 127,738 160,874 15%

Associate 3 63,750 195,000 290,000 325,000 130,761 174,500 11%

Vice President 1 172,500 225,000 300,000 450,000 162,322 233,477 17%

Vice President 2 191,250 277,500 356,250 511,500 174,573 283,179 15%

Vice President 3 200,000 367,000 465,000 950,000 163,048 344,238 17%

Senior Vice President 185,750 350,000 447,500 760,000 182,108 359,136 12%

Managing Director nm nm nm nm 262,500 nm nmAverage $75,000 $170,000 $293,750 $950,000 $143,312 $205,465 12%

Bonus by Year and Title

2009 Bonuses 2010 Bonuses Var. 2009 / 2010

Median Average Median Average Median Average

Associate 0 $40,000 $42,771 $40,000 $40,280 0.0% (5.8%)

Associate 1 140,000 134,952 125,000 127,321 (10.7%) (5.7%)

Associate 2 168,125 153,484 160,000 160,874 (4.8%) 4.8%

Associate 3 230,000 233,331 195,000 174,500 (15.2%) (25.2%)

Vice President 1 355,000 326,211 225,000 233,477 (36.6%) (28.4%)

Vice President 2 362,500 346,000 277,500 283,179 (23.4%) (18.2%)

Vice President 3 263,500 297,875 367,000 344,238 39.3% 15.6%

Senior Vice President 557,500 524,556 350,000 359,136 (37.2%) (31.5%)

Managing Director nm nm nm nm n/a n/a

Note: bonuses as reported by the bankers; include cash and stock portion as well as other types of deferredpay.


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$9.8$11.2

$9.1

$13.5

$19.5

$13.0

$9.8

$15.8

$18.6

$25.6

$34.3$33.0

$17.6

$22.5$20.8

$0

$5

$10

$15

$20

$25

$30

$35

$40

'96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10E

Wall Street Bonuses15-year History

($bn)

-7.6%

Source: The Office of the State Comptroller, February 2011. After a significant increase in Wall Street bonuses in 2009 (+27.8%), bonuses were slightly down

in 2010. According to estimates released by New York State Comptroller Thomas DiNapoli, total

Wall Street bonuses were down 7.6% last year to $20.8 billion, compared with $22.5 billion in

2009. But these estimates do not include stock options or other types of deferred pay.

WallStreetComps estimates gathered directly from investment bankers show a similar picture:

2010 Median Bonuses were down 15.0% at $170,000 per banker and 2010 Average Bonuses

were down 23.4% at $205,465 per banker.

$187

$255

$367$345

$133

$268

$205

$148

$220

$255$283

$90

$200

$170

$0

$50

$100

$150

$200

$250

$300

$350

$400

'04 '05 '06 '07 '08 '09 '10

WallStreetComps Survey

($ in thousands)

Average Bonus Median Bonus

However, median total compensation was only down 4.6% (or $15,000) to $310,000 due to a

significant increase in base salaries implemented last year by all major financial institutions.

Enjoy the Fifth Annual Wall Street Comps Survey!


9/21


REGRESSION ANALYSIS

For statistics aficionados, we ran a regression analysis for the bonuses paid in 2010 based

on years of experience, type of banks and location. We excluded from the regression stub

bonuses (bonus paid to Associate 0). The analysis yielded the following regression:

Bonus = $193,080 + Rank * $39,474 - Bank * $34,076 - Location * $18,514

R2 = 0.181

Standard Error = $146,798

With:

Rank

Associate 1 1

Associate 2 2

Associate 3 3

Vice President 1 4

Vice President 2 5

Vice President 3 6

Senior Vice President 7

Bank

Large U.S. Banks 1

Large European Banks 2

Boutiques / Others 3

LocationNew York 1

London 2

Other 3


10/21


DISTRIBUTION BY BANKS

2010 Average Bonus by Banks and Title

2010 Average Bonus

Banks Distribution Associate* Vice President SVP

Large U.S. Banks 39%

Average Bonuses $167,855 $347,786 $553,333

Average Portion Paid in Stocks 16% 20% 24%

Bank of America / Merrill Lynch 168,824 432,500 400,000

Barclays 172,333 294,227 540,000

Citigroup 213,870 453,333 -

Goldman Sachs - 362,500 -

JPMorgan 118,333 370,000 640,000

Morgan Stanley 205,000 373,500 600,000

Large European Banks 14%

Average Bonuses $90,556 $267,161 $175,000


BNP Paribas 10,000 138,333 350,000

Credit Suisse 187,500 176,614 -

Deutsche Bank - 301,667 -

UBS 75,000 391,667 -

Boutiques 5%

Average Bonuses $225,000 $460,000 $181,000


Evercore Partners 230,000 - -

Jefferies 225,000 460,000 181,000

Others 43%

Average Bonuses $140,212 $235,706 $311,538


Oppenheimer 105,000 - 236,667

RBC Capital Markets 312,500 347,333 750,000

Wachovia 172,333 - -

Other 119,925 228,925 267,273

Average 2010 Bonuses 100% $152,178 $285,577 $359,136

Average 2009 Bonuses $166,359 $322,518 $524,556

Y-o-Y Increase (9% ) (11% ) (32% )

* Does not include Associate 0


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DISTRIBUTION BY LOCATION

2010 Average Bonus by Location and Title

2010 Average Bonus


New York 66% $159,447 $313,757 $341,824U.S (ex - NY) 20% 141,658 208,750 332,500

London 8% 158,588 267,607 -

Europe (ex - London) 1% 137,000 40,000 -

Asia 4% - 275,904 760,000

Total Population 100% $152,178 $285,577 $359,136


2010 Average Bonus by Banks, Location and Title

2010 Average Bonus


Large U.S. Banks 39% $167,855 $347,786 $553,333

New York 169,306 351,786 527,500

U.S (ex - NY) 172,500 400,000 450,000

London 158,588 307,875 -

Europe (ex - London) 132,000 - -

Asia - 373,500 755,000

Large European Banks 14% $90,556 $267,161 $175,000

New York 83,125 278,750 175,000

U.S (ex - NY) 145,000 - -

London - 260,000 -

Europe (ex - London) - - -

Asia - 171,614 -

Boutiques 5% $225,000 $460,000 $181,000

New York 225,000 460,000 181,000

U.S (ex - NY) - - -

London - - -

Europe (ex - London) - - -

Asia - - -

Others 43% $140,212 $235,706 $311,538

New York 166,031 285,286 317,000

U.S (ex - NY) 109,889 181,429 293,333

London - 214,785 -Europe (ex - London) - 35,000 -

Asia - 180,000 -

Average 2010 Bonuses 100% $152,178 $285,577 $359,136

Average 2009 Bonuses $166,359 $322,518 $524,556

Y-o-Y Increase (9% ) (11% ) (32% )



12/21


DISTRIBUTION BY GROUPS

2010 Average Bonus by Groups and Title

2010 Average Bonus

Banks Distribution Associate* Vice President SVPM&A 27% $169,136 $238,786 $409,000

Industry Coverage 53% 158,500 314,713 350,000

Fin. Sponsors / Lev. Fin. 3% 134,675 34,677 90,000

Capital Market 6% 150,000 207,500 272,000

Other Group 11% 89,111 366,429 750,000



2010 Average Bonus by Banks, Groups and Title

2010 Average BonusBanks Distribution Associate* Vice President SVP

Large U.S. Banks 39% $167,855 $347,786 $553,333

M&A 211,000 305,000 640,000

Industry Coverage 164,409 354,885 536,000

Fin. Spons ors / Lev. Fin. 119,350 50,000 -

Capital Markets 150,000 210,000 -

Other Group 140,000 700,000 -

Large European Banks 14% $90,556 $267,161 $175,000

M&A 76,667 515,000 -

Industry Coverage 108,000 255,231 -

Fin. Spons ors / Lev. Fin. - - -

Capital Markets - - 345,000

Other Group 40,000 185,000 -

Boutiques 5% $225,000 $460,000 $181,000

M&A 241,667 460,000 -

Industry Coverage 225,000 - -

Fin. Spons ors / Lev. Fin. - - -

Capital Markets - - 176,000

Other Group 165,000 - -

Others 43% $140,212 $235,706 $311,538

M&A 155,545 175,800 351,250

Industry Coverage 164,167 305,091 253,333

Fin. Spons ors / Lev. Fin. 150,000 19,354 90,000Capital Markets - 200,000 285,000

Other Group 61,400 265,000 745,000

Average 2010 Bonuses 100% $152,178 $285,577 $359,136

Average 2009 Bonuses $166,359 $322,518 $524,556Y-o-Y Increase (9% ) (11% ) (32% )



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ASSOCIATE 0

2010 Bonus by Banks

Base Bonus

Type of Bank Distribution Average Median Average

Large U.S. Banks 28% $103,571 $40,000 $42,000

Large European Banks 24% 104,167 35,000 35,833

Boutiques 20% 111,000 40,000 43,000

Other 28% 88,571 40,000 40,429


2010 Bonus by Location

BaseBonusLocation Distribution Average Median Average

New York 68% $106,176 $40,000 $43,206

U.S (ex - NY) 32% 90,000 35,000 34,063



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ASSOCIATE 1

2010 Bonus, Base and Percentage of Bonus paid in Stock, by Banks

Base Bonus Stocks

Type of Bank Distribution Average Median Average AverageLarge U.S. Banks 43% $123,750 $125,000 $130,000 15%

Large European Banks 7% 130,000 55,000 55,000 0%

Boutiques 4% 130,000 170,000 165,000 18%

Other 46% 110,000 125,000 132,692 13%

Total Population 100% $118,036 $125,000 $127,321 13%

Base 2010 Average Bonus

Bank Distribution Average Total Stock

Bank of America / Merrill Lynch 21% $122,500 $128,333 13%

Citigroup 4% 125,000 160,000 0%

Evercore Partners 4% 130,000 165,000 18%

JPMorgan 18% 125,000 125,000 20%

UBS 7% 130,000 55,000 0%

Total Sub-Group 54% $126,500 $126,667 10%

Total Population 100% $118,036 $127,321 13%


2010 Average Bonus

Location Distribution Median Average

New York 68% $125,000 $132,632

U.S. (excluding NY) 29% 115,000 110,000

London 4% 165,000 160,000

Total Population 100% $125,000 $127,321

2010 Bonus by Group

2010 Average Bonus

Group Distribution Median Average

M&A 32% $125,000 $117,222

Industry Coverage 57% 122,500 129,375

Other Group 11% 170,000 146,667



15/21


ASSOCIATE 2


Base Bonus Stocks



Boutiques 10% 107,500 227,500 227,500 7%

Other 19% 104,875 101,000 115,500 4%





Barclays 10% 122,500 161,000 8%

Citigroup 10% 132,250 154,675 0%

Credit Suisse 5% 150,000 145,000 40%

Lazard 5% 110,000 225,000 14%

Morgan Stanley 5% 140,000 200,000 57%

UBS 5% 130,000 140,000 10%

Total Sub-Group 76% $132,080 $170,275 21%



2010 Average Bonus


New York 57% $180,000 $176,250U.S. (excluding NY) 24% 150,000 131,400

Europe (excluding London) 5% 137,000 137,000

London 14% 160,000 156,450


2010 Bonus by Group

2010 Average Bonus


M&A 24% $160,000 $169,400


Fin. Sponsors / Lev. Fin. 5% 119,350 114,350Capital Market: ECM / DCM 10% 150,000 150,000



16/21


ASSOCIATE 3


Base Bonus Stocks



Boutiques 9% 165,000 250,000 250,000 29%

Other 39% 110,556 150,000 162,056 8%





Barclays 4% 130,000 190,000 17%

BNP Paribas 9% 100,000 10,000 0%

Citigroup 9% 151,250 297,500 0%

Credit Suisse 4% 150,000 220,000 11%

Evercore Partners 4% 170,000 285,000 22%

JPMorgan 4% 160,000 80,000 10%

RBC Capital Markets 9% 100,000 312,500 28%

Total Sub-Group 57% $140,156 $206,458 14%



2010 Average Bonus


New York 70% $202,500 $178,688U.S. (excluding NY) 26% 215,000 192,417


2010 Bonus by Group

2010 Average Bonus


M&A 35% $259,500 $227,375


Fin. Sponsors / Lev. Fin. 4% 150,000 145,000

Other Group 22% 45,000 72,400



17/21


VICE PRESIDENT 1


Base Bonus Stocks



Other 43% 134,452 187,500 173,835 11%





Barclays 30% 165,714 235,000 14%

Credit Suisse 4% 253,896 171,614 50%

Deutsche Bank 4% 185,000 260,000 30%

Goldman Sachs 4% 200,000 445,000 20%

Morgan Stanley 4% 230,000 305,000 20%

UBS 4% 160,000 330,000 44%

Total Sub-Group 57% $199,230 $313,088 28%



2010 Average Bonus


New York 43% $250,000 $257,700

U.S. (excluding NY) 22% 200,000 228,400

Asia 9% 243,307 243,307London 26% 165,000 194,059


2010 Bonus by Group

2010 Average Bonus


M&A 13% $175,000 $215,000



Capital Market: ECM / DCM 13% 170,000 156,667

Other Group 9% 327,500 327,500Total Population 100% $225,000 $233,477


18/21


VICE PRESIDENT 2


Base Bonus Stocks



Other 29% 152,500 227,500 228,250 0%





Barclays 21% 181,342 363,833 21%

BNP Paribas 14% 145,000 135,000 0%

Citigroup 7% 175,000 355,000 25%

Deutsche Bank 14% 200,000 320,000 33%

Goldman Sachs 7% 250,000 270,000 25%

Total Sub-Group 71% $187,724 $308,972 22%



2010 Average Bonus


New York 79% $280,000 $287,273

U.S. (excluding NY) 7% 113,000 108,000

Asia 7% 180,000 175,000

London 7% 511,500 506,500Total Population 100% $277,500 $283,179

2010 Bonus by Group

2010 Average Bonus


M&A 36% $275,000 $242,600



Other Group 7% 225,000 220,000



19/21


VICE PRESIDENT 3


Base Bonus Stocks



Boutiques 5% 135,000 455,000 460,000 2%

Other 57% 145,500 292,500 289,750 13%




Citigroup 10% $190,000 $500,000 10%

Jefferies 5% 135,000 455,000 2%

JPMorgan 5% 190,000 365,000 25%

Morgan Stanley 5% 213,000 432,000 60%

RBC Capital Markets 10% 125,000 487,500 28%

UBS 10% 205,000 420,000 30%

Total Sub-Group 43% $176,333 $443,250 26%



2010 Average Bonus


New York 76% $368,500 $367,000

U.S. (excluding NY) 10% 207,500 207,500

Europe (excluding London) 5% 35,000 40,000Asia 5% 432,000 437,000

London 5% 460,000 465,000


2010 Bonus by Group

2010 Average Bonus


M&A 29% $210,000 $247,500



Other Group 19% 305,000 421,250



20/21


SENIOR VICE PRESIDENT


Base Bonus Stocks



Boutiques 5% 175,000 181,000 176,000 10%

Other 59% 152,846 285,000 311,538 8%





Barclays 9% 240,000 540,000 22%

JPMorgan 5% 260,000 635,000 30%

Morgan Stanley 9% 225,000 600,000 22%

Oppenheimer 14% 150,000 236,667 0%

Total Sub-Group 41% $225,000 $481,333 20%



2010 Average Bonus


New York 77% $350,000 $341,824

U.S. (excluding NY) 18% 365,000 332,500

Asia 5% 755,000 760,000


2010 Bonus by Group

2010 Average Bonus


M&A 23% $350,000 $409,000




Other Group 5% 745,000 750,000



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Documents

2010 Wall Street Comps Survey