Making Career Moves Midway: IB to IB Transition
I’m a Senior Associate at a Middle Market bank, focusing on sector-specific sponsor finance transactions. As an Associate, I earned a base salary of $120k along with a bonus of $47k. This year, I was promoted to Senior Associate, boosting my base to $135k, with a projected bonus of approximately $55-60k, bringing my total compensation to around $190k. My current role feels manageable; I typically work about 30 hours a week during non-live deal weeks. When deals are active, my hours can jump to around 80, but I’ve been handling it well. The position allows for three days in the office, and I enjoy significant flexibility—I can easily reach out to my manager if I need to skip a day for personal errands.
I’m now anticipating an offer from a much larger bank looking to expand its Middle Market Sponsor finance team in my sector. They’re actively pursuing me for an Associate role, and the recruiter indicates a potential salary starting at $160k with a bonus of $70k+, which would bring my total compensation to approximately $230k. However, this role requires being in the office four days a week, comes with a longer commute, and is more demanding due to smaller team sizes. The work aligns closely with what I’m doing now, so I’m not concerned about the responsibilities.
I’m interested in feedback from other mid-career professionals on whether the 21% increase in total compensation justifies the shift in lifestyle. Additionally, I have some concerns about how a possible recession might impact a small, newly formed team at a larger bank versus a core revenue-generating team at a smaller institution.
Summary:
- Current Role: $135k + $55k bonus = $190k total. 3 days in office with great flexibility; I work significantly fewer hours than many IBs.
- Potential New Role: $160k + $70k+ bonus = $230k total. 4 days in office with stricter policies; less flexibility and likely more hours.
On top of this, I’m also developing an app on the side and planning my wedding for next year. My instinct suggests staying in my current, easier role, but the financial benefits of the new position are hard to ignore. What would you do?
One response
It sounds like you’re facing a significant crossroads in your career, and it’s understandable to feel torn between financial incentives and lifestyle. Here are a few thoughts to consider as you weigh your options:
Compensation vs. Lifestyle: The increase in compensation is substantial—essentially a $40k bump in total annual income. However, it’s crucial to reflect on how much value you place on work-life balance. If you’re currently comfortable and able to manage your workload with relative ease, a switch to a more demanding environment could impact your personal time and stress levels.
Career Development: Consider the potential long-term benefits of joining a larger bank and a new team. If this opportunity enhances your skills, expands your network, or positions you for better roles in the future, it might justify the change despite the initial lifestyle adjustment. Evaluate whether the experience and exposure you’ll gain could pay dividends later in your career.
Stability vs. Risk: The concern about economic downturns affecting a new team at a larger institution is valid. Smaller, newer teams might be more vulnerable during tough economic times, particularly if they’re not yet contributing significantly to the bank’s revenue. Think about the stability of your current position versus the risk of joining a new team.
Personal Priorities: With your wedding coming up and your side project, consider how the extra hours and commute might impact your personal life. Will you have enough time and energy to dedicate to your app and preparation for marriage? Aligning your job with your life goals is crucial.
Flexibility and Office Environment: Your current job’s flexibility allows you to manage personal errands without much hassle. In a more rigid environment, will the additional stress and hours affect your happiness, especially with personal commitments on the horizon?
In the end, it’s about striking a balance between financial gain and personal well-being. If you can, perhaps negotiate for better terms with the new role or explore how they might accommodate your needs for flexibility. Ultimately, choose a path that aligns with your long-term goals and values, both professionally and personally. Good luck!