Advice on Job Switch - BB I-bank to PE, VC, HF

[Butters]

Hey all,

I'm currently working in an associate position at a large BB bank. Recently I was approached by another bank and intereviewed. Now they're offering me a one-year promotion, with the opportunity to move up to VP in a year (as opposed to two years in my current position). They would make whole my bonus for 2006 (paid in Feb.) The job function is essentially the same. Based on my back of the envelope calc., I would expect my total comp. to be up 7% for 2006, and up 10% for 2007, over what I expect in my current position.

So I'm struggling with whether this is worthwhile. My other options would be to hold off for a year, and then search for a hedge fund, private equity firm, or VC firm. For all of you who have made the switch from an IB to these areas, would you anticipate a much larger spike in comp. to make the switch compelling? In other words, would it be worthwhile to leave for a 7-10% increase in comp. or should I expect a greater spike (north of 20%) if I were to move to a HF, PE, VC?

Thanks for any advice.

 

[Danny Boy]

The rule of thumb I've heard is never switch for less than 20%.

 

[jax26]

HF, PE, VC are all different animals. I highly doubt you are going to be able to target all three expecting to land something

 

[numi]

like jax26 mentioned, HF/PE/VC are completely different, and I don't know how you'd seriously consider any of these fields without looking at other factors besides comp.

Also, if you're an associate in BB, surely you must know someone who can give you guidance as far as the change in comp is concerned - but in the end, only YOU know the answer as to whether the comp increase is worth changing careers (though your colleagues would probably tell you that 7-10% increase = "NO".)

I also think that if you are considering a career change, it's probably worth doing more than a just "back of the envelope" calculation.



Edited 1 time(s). Last edit at Tuesday, September 26, 2006 at 03:16PM by numi.

 

[Butters]

Thanks for the advice.

numi, you're right, these all all different areas and there is much to consider other than comp. However, I have been told that comp. is higher at the right firms in most of these areas, and given that I would hold off for 1-2 years to make the switch, I have not focused on anything specific. When I actually begin aggressively pursuing opportunities I will be a bit more focused.

yes, I know plenty of people who can provide guidance other than analystforum, but for political reasons, I am keeping this to myself before disclosing to my employer. As far as calculating comp. using a BOE calculation, given that we are paid with end-of-year bonuses in this line of work most expectations require an estimate.

Thanks again.