This podcast episode spills the secrets on how compensation works on Wall Street, including how to negotiate your pay, how pay cycles work, what a bonus actually is, and how to position yourself for the optimal career path. It also explores the significance of staying informed about market trends and pay transparency, discusses the concept of bonuses and deferred stock, and provides insights into negotiation strategies for better compensation.
55:33
AI Summary
AI Chapters
Episode notes
auto_awesome
Podcast summary created with Snipd AI
Quick takeaways
Understanding the different structures of compensation on Wall Street based on roles and seniority levels.
Effective strategies for negotiating compensation on Wall Street throughout one's career.
The importance of considering factors beyond monetary compensation, such as location, work-life balance, and potential for promotion.
Deep dives
Expanding Learning Opportunities and Excel Mastery
The podcast episode announces the availability of one-on-one meetings via a platform called Intrao and highlights a software called KeyFicient that teaches keyboard shortcuts in Windows Excel. The software actively helps users improve their Excel skills while working. The episode emphasizes that investing in KeyFicient, which offers a lifetime access option at a lower cost than AirPods, can make individuals more competitive in job applications and career advancement.
Compensation on Wall Street: Salary and Bonus Structure
The podcast delves into Wall Street compensation, specifically focusing on the salary and bonus structure. They discuss how compensation varies for different roles, such as commercial banking positions versus front office roles. It highlights that more junior positions have a higher percentage of fixed salary in their total pay, whereas senior positions have a greater proportion of variable compensation, including bonuses. The episode also talks about the misconceptions surrounding bonuses and emphasizes that compensation is tied to various factors, including team performance and individual ranking.
Negotiating Compensation and Maximizing Earnings Potential
The podcast explores how individuals can negotiate their compensation on Wall Street effectively. It emphasizes that negotiating salary and bonus is not a one-time event but an ongoing process throughout one's career. They encourage listeners to stay informed about market rates for their roles, have conversations with colleagues and headhunters, and gather data to inform negotiations. The episode highlights the importance of handling discussions about potential job offers and career moves gracefully and advises against burning bridges. It also mentions the significance of considering factors beyond monetary compensation, such as location, work-from-home options, personal time off, benefits, and potential for promotion.
The Importance of Negotiating Your Compensation
Negotiating your compensation is a year-long process that involves multiple steps. The first step is the pre-hire negotiation, where incoming analysts or associates may have minimal leverage in today's competitive environment. The focus should be on negotiating other factors like the desired desk or group, which can set you up for long-term success. The second step is the year-long process of regularly scheduling meetings with your direct manager or those who have control over your pay and promotion. These meetings are an opportunity to discuss performance, expectations, and career development. It helps bring attention to your value and build a strong relationship with your manager. Lastly, the third phase is the actual compensation day, where the results of the year-long advocacy process reflect in your pay. It is important to ensure that there is a alignment between the conversations had throughout the year and the compensation received. It highlights the need to negotiate the factors that contribute to long-term success rather than focusing solely on immediate pay increase.
Understanding Negotiation Strategies and Considerations
Negotiation strategies can vary based on circumstances and individual factors. It's crucial to consider the firm's financial standing, political capital, and the overall market conditions. Building relationships with those in power and becoming indispensable can increase your leverage. Negotiating guarantees, especially in markets-based roles, can secure a certain salary and bonus structure for a specific period. However, it's important to get such agreements in writing. Being aware of pay caps and understanding the dynamics of compensation can also help in negotiations. Communicating personal expenses or cost of living may be effective if the firm values your contributions and has the financial capacity for pay increases. Balancing honesty, self-awareness, and psychological tactics can help position yourself effectively during negotiations.
Let's talk about MONEY. Maybe you're hoping to land a high paying job on Wall Street . Maybe you're hoping to maximize your earnings potential in your current job. Or maybe you know people who work on Wall Street and are curious to understand why their pay structure is so different from most other jobs. Whatever your perspective may be, THIS episode is the first open, honest, tell-all guide explaining exactly how compensation works on Wall Street. We spill the secrets on how to negotiate your pay, how pay cycles work, what a "bonus" actually is, how to navigate difficult conversations, and how to position yourself for the optimal career path. You will have specific action items after listening to this podcast that will empower you to take control of your pay, no matter what the specifics of your current circumstance.
Start your FREE TRIAL of Training The Street's Turbo Macros HERE
Shop the MAY SALE: - Buy the FULL IBD / PE course for 20% offHERE - M&A Standalone Course $50 OFFHERE
Enroll in the Financial Modeling Talent Accelerator HERE
Join the Fixed Income Sales and Trading waitlist HERE
Our content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice.
Public Disclosure: All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Public Investing, Inc., member FINRA & SIPC. Public Investing offers a High-Yield Cash Account where funds from this account are automatically deposited into partner banks where they earn interest and are eligible for FDIC insurance; Public Investing is not a bank. Cryptocurrency trading services are offered by Bakkt Crypto Solutions, LLC (NMLS ID 1890144), which is licensed to engage in virtual currency business activity by the NYSDFS... ...
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
