If you don’t like dirty talk about cash, look away now. Bonus season is upon us. If you work for a financial services company, now is the time to pack your boots.
There are predictions of record booty offered this year thanks to increased transaction volumes and the post-pandemic war for talent, with some predicting US investment bank bonuses could increase by 35% from last year.
Before joining Morgan Stanley in London, I was asked what my bonus had been for the previous year. I was pretty proud of my 65 percent of base salary.
“Just so you know,†said my future boss, “our bonuses are salary multiples, not percentages. “
I have been working on it for a few decades, but the system remains in place. However, the money will not just fall on your knees. If you haven’t worked to get your bonus and promotion all year, you’ll be missing out.
The model adopted by investment banks and private equity firms is to keep staff salaries relatively low, with high variable compensation. A good bonus will be paid to those who are successful and successful. Asking for a raise after the closed-door discussions over ration allocation is like saying to Oliver Twist, “Please sir, I want more. ”
The unfavorable answer of the master will be adopted by the elite of the bank (at best, you will be offered jam tomorrow).
So now is the time to sharpen your elbows and unlearn your manners. In the world of finance, if you don’t ask, you won’t get anything. And guess what? Life isn’t fair, neither are bonuses and promotions.
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Understanding how the system works is essential. At the end of the year, large organizations are crippled by staff reviews – a process apparently designed to keep HR on the job. If you work for a US investment bank, these are 360 ​​degree reviews. Management assesses your performance by interviewing your colleagues, your team and your bosses. They will determine a score corresponding to your share of the pot attributed to your seniority.
While all of this is going on, the bosses will also be scrutinized. Schedule lunch one-on-one to prepare for a favorable review. They know how the system works. But the system is faulty.
How many fees were created from a deal made because of the franchise rather than the individual? Was the person in charge of the relationship really helpful or did they demonstrate a seagull management style? By that I mean flying, screaming a lot, leaving a mess everywhere, then going back until the next load of fish arrives, letting the “grumpy” push the case over the line. That’s why promotion is as important as a bonus.
During this time, you should also talk to the competition. Take those calls and if they offer a golden hello, a jump in the ranks, a guaranteed bonus, or even to redeem you from the bonus you expect to get, it might be time to move on. Forget loyalty. Boot cut jeans are out of fashion.
I might not be thanked for the advice, but if you’re wondering if you should ask for more, it might quell the skeptical voices in your head.
“Nobody likes to show off”
We do not care? Bonuses are not a popularity contest. At the start of the exercise, set your goals, then gather evidence. Everything you did in every transaction you were involved in. Every person you introduced, every late night or early morning your contribution made a difference. Make sure those in charge know all you reached. And that means getting time to cope. Management is a skill. Those who show themselves, in the proper way, will be rewarded. Beautiful.
“Put in the queue”
Brits know that one of the most frustrating aspects of traveling abroad is the inability of locals to line up properly. It had been a long time since we had been able to experience the crush on a ski lift, where crashing to make your way forward is the order of the day. It’s like cutting the nose off cheese at a buffet – very rude, but if you don’t, someone else will. Likewise, being polite is something you do when you are super rich. If you’re not ready to head the queue for bonuses, expect to only feast on the crumbs left behind.
“Don’t talk about money”
Your contract will tell you that you are not allowed to discuss what you get paid. Everyone knows it’s forbidden. But everyone is doing it. How can you negotiate or get a decent corner if you are totally in the dark? Colleagues at different levels or, better yet, the competition are a great source of information. Speak in code and cover your tracks. Having an idea of ​​who gets paid what should establish your value, and your bosses should know your expectations. I mean, how does Santa know what to bring without a list?
“Style rather than substance”
If you are a high performer and generate income, you will get the bonus you rightly deserve. If you do everyone’s ass job, you will be ignored. Successful operators focus on price – visibility and self-promotion – while offloading the heavy lifting. Perception is reality.
“Loyalty is integrity”
Integrity with your work is essential. However, it is your employer’s job to determine how much (or how little) they have to pay you to keep you. They can’t be bothered whether you stay or go anyway, and will drop you like a hot potato if you’re not carrying your weight. Likewise, colleagues will stomp on you to move forward. A bit like attacking a family, when it comes to money, behaviors change. Be prepared to go if they don’t give you what you deserve.
If the results are clear and you have risen to the forefront, you will triumph in the bonus bets over someone with nice manners to deal with.
Yes, I painted the picture of a festival of startling vulgarity. And that’s not to mention private jets, top-notch real estate purchases, lavish watches, jewelry, vacations, and cars. It’s worth feeling dirty when the seven-digit after-tax payment falls into your bank account.
Now you can book yourself a wonderful Caribbean Christmas vacation to decide which Aston Martin you are going to buy while securing the second home you think you need. And especially? To recharge your batteries and plan your next heist – next year’s bonus and promotion!
James Max is a radio host and real estate expert. The opinions expressed are personal. Twitter: @thejamesmax
