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The last bank paying $600k to 23-year-olds

Happy days at PWP

If you're a junior banker now, life is not what it was. As High Yield Harry, himself a former banking analyst who's now on the buy-side, told Bloomberg this week, all the people who "stuck around in banking a little too long" have had a shock. Two years ago, median bonuses for first year associates ranged from $108k (at Credit Suisse) to $208k (at Lazard) and 23 year-olds at Goldman Sachs were on total compensation of $400k. Today, first year associate bonuses as most banks appear to range from $60k to $125k and only third years are getting the $200k payouts. 

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There is, however, an exception. Perella Weinberg Partners (PWP) announced bonuses this week, and multiple sources say they have been fine indeed. People at the bank told Instagram account Litquidity that "bonuses were solid" and "management took care of juniors." Writing on Wall Street Oasis, one PWP insider claimed that first year associates received bonuses of $360k-$400k, that second years got $460k-$500k and that third years got $540k+. 

Given that PWP also pays associates salaries of between $200k and $250k, the implication is that first year associates, who may be as young as 23, earned circa $600k for last year. Suddenly moving to the buyside isn't that appealing after all.

PWP isn't reporting its fourth quarter results until early February, but in its nine month results for the year to September it said it had increased compensation spending by 4% year-on-year. 

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AUTHORSarah Butcher Global Editor
  • VP
    VP at Bank
    26 January 2024

    Please note that these are not your "Normal" bankers that you find in the southern hubs, but the day traders that essentially baby sit HFT AI's after graduating from their parent's alumni school. Please don't set my house on fire, or vandalize my car again. Thank you.

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