I am currently a director in trading - TC 450 K. I got an offer from a tier 2 bank with TC of 600K. The tier 2 bank is a newbie in the specific business line but investing heavily. So far it's an unprofitable business at the tier 2 bank but they seem quite upbeat. Would it be a prudent decision to consider the offer ? My concern is if after a few years the tier 2 bank realizes they can't compete with the BB and decide to pull the plug, it might be a point of no return for me. I'm quite satisfied with my current position, but there's layers of managers above me and I feel my growth is capped here. I'm not able to figure out if the 30% increase would be worth the risk. Also currently I am an IC (individual contributor), but would be managing a team at the new place. Appreciate any advice from the community. #sellside #jpmorgan #goldman #citi #creditsuisse
Svb ?
600k offer and a jump to management seem like a no brainer to me
Being an IC vs managing a team are totally diff kinds of work and experiences, if I were in your situation I would make the decision based on what direction you are tryna move forward in your career (although I’m a lot more junior than you are)
Definitely a tough decision here. I think evercore above makes a good point it really depends on the product that's being traded. Liquid products at risk of further automation would be tough to gain market share in the current hyper competitive market place. The BB's are trying to squeeze all the smaller players out. On the other hand what are the odds that your current role gets made redundant in the next 10 yrs? If there's a decent possibility then it may actually pay off to hop to the other bank and lead a more agile team in the direction the market is headed as established banks with a load of developed infrastructure may find the shift more difficult.
Changing from ic to management is a huge jump. This will stretch you at personal level. You also have to deliver a lot with that money, so think twice
This is a tough decision. You mentioned it might be a point of no return for you if the T2 bank pulls the plug - what exactly did you mean by that? From what I know I have seen people leave and come back to CITI, seen some people do it multiple times. Are you concerned about age? Product type being too niche? On the other hand, you didn’t mention what growth you might have at the T2 bank or how strong their funding/backing is. Those things make a difference. FWIW, I too had to make a similar decision earlier this year - BB vs T2 pre-IPO. They were giving quite a bit of stock to lure me as well, which would be worth something if they went through IPO. I chose to stay w BB. Sometimes I think about the potential gains i gave up, but then again I figured the brand name and comfort of BB and it’s mature processes was worth it.
I'm a desk quant with only 2 YOE so our situation might differ wildly. However, I'm considering a similar move, from BB/megacorp to a new player/startup in the same space (for more $$ ofc). What made the decision easy for me was the opportunity to make an impact. At BB, I grunt out code and some math using stale systems, but at the startup, I'll have the opportunity to help design and build an entire risk data system from scratch (DBs, networks, distributed computing, etc.). I know our jobs and experience may vary wildly, but hope my 2 cents help you.
TC?
JEEZ don't see how that's relevant seeing as OP is probably 25yrs ahead of me in their career, but sure - 100k (TX)
I personally view the risk reward when TC is known, using your specific example, as follows: If 450 is current TC, 600 TC new, then for every 4 years you need to work in the current job (1.8mm comp) would be equivalent to 3 years in the new role (= 1.8mm comp). To me, trading 3 years for 4 years from a retirement standpoint is a “risk” worth taking. Would there be a title bump at the new firm? I assume for you that would be MD given you are... an ED now? If MD & 600K no brainer. If ED & 600K, I would still take it. Get a year back for every 3 you are employed. I also agree with FX & Rates technology conversation, but all of the firms will be heading towards technology eventually.. best tech will win the deals (I work in algo trading, relationships mean less and less.. just who has the best prices). Hope this helps
The only thing I'd add is depending on what state you are in, that extra 150k is being taxed at 40%-50% because of what bracket you are in
Hi there. I did TC for a while and I think the way you described and the amount of money they offer you...... You will become the head of the mouse instead of the tail of the lion.... Everything depends on how many headaches you want at this point in your life. TC teams are very demanding due to the financial impact can have at anytime. If you want a peaceful life stay put if you like rock and roll and become a big boss.....leave and never look back
I’m not at your experience level, but I would say it would depend on what product you trade - is it an opaque market where relationships are what drives business? Or is it something like rates/FX/equities where technology & innovation will be what captures share? If you think this new group would have an edge (be it relationships or tech) I’m inclined to say it would be fun to try something entrepeneurial, assuming the circumstances in your life would allow you to do that. On the other hand, I know how tough it is to get a seat in S&T land, so if this doesn’t pan out, it could leave you out for a few months while something opens up. Curious to see how you are leaning in your thought process