I received a verbal offer at a bulge bracket IB but they have not hashed out the details of numbers yet. HR wants to get a general sense of my expectations. They asked me my all-in (base + bonus) expectation.
For example, if I’m looking for all-in of USD 200,000 (numbers are made up) and give me a base of 130,000, they will give guarantee a bonus of 70,000? This is where it becomes tricky because bonuses are discretionary and based on performance. Or perhaps would it be better for me to try to negotiate a higher base like 140,000 - 160,000 which is fixed which would minimize the variance on my bonus. However, my bonus would then just be 40,000 to 60,000 to get me to my all-in expectation which is now a smaller percent of my larger base.
Anyone can provide some insights on how to tactically approach this.
If this is IB division, you should be able to find the actual salary and bonus numbers by class at most of the large banks. You should say that you understand the range to be as such, but say that you’re looking forward to working really hard and hope to achieve something towards the upper end of the range.
Do you have leverage (any other offers?) If you do, you can afford to push hard towards the upper end of the range, otherwise stick to the market average. Everyone works hard, so saying that isn’t much of a leverage. Tell them you know what the market rates are (say $150k + 45K), and that you already have an offer from X ($155K + 50K), but you prefer the [subject IB] so ask them to consider ($160k + 55k).
I mean, they’re not going to pay you more just because you promise to work hard. However, it’s still good to convey the winner attitude that might help project yourself as higher value. At the same time, I think it’s really important to start by saying “I know the range is X to Y”, as this establishes that you are informed on the market and makes your proposal more credible.