Bonus time: how to play it
 

I am a fixed income trader at a major U.S. investment bank in Manhattan. Like many of our competitors, we have been in the news a lot in 2007 as having been entangled in the subprime mess, which has led to bad earnings, write-downs, bad press, a bad year for the stock, and hundreds upon hundreds of layoffs.

I however, have somehow managed to have a really good year in my own trading. A career year, in fact. I'm 33. I just bought an apartment in NYC for over $2 million. I need to get paid well. I deserve to get paid well.

My question: if they don't pay me what I deserve, how aggressive with them can I be? Can I literally get up and walk out of the building? I'm in a position of strength right now- they wouldn't want to lose me. That said, there isn't exactly that much money to go around, so it's certainly possible that my number is very disappointing versus my expectations.

I'd love to hear thoughts on how to approach this situation. I have a great relationship with my boss, but that will sour quickly if he tries to screw me in January.

Any advice/life experience will be appreciated. Thanks.

Re: Bonus time: how to play it
 

You have an understandable concern, but "getting aggressive" with them does zero for you. First, when they deliver you your pay, they are giving you the news, not entering into a negotiation. Second, at that point, 2007 will be in the can; you are playing for 2008 and need to do what will help you get paid in 2008. Quitting without an alternative plan usually doesn't accomplish that.

If you are in a position of strength you need to use that strength when it can help, which is right now. Are you able to have a reasonable discussion with your manager? If so, you can have a discussion and maybe it has a beneficial impact. Of course, if you are a jerk about it, it won't. Keep in mind that even if they don't want to lose you, they will survive if you leave.

Remember that there is a market out there, for bonds and for people. To the extent that you develop viable alternatives, you will support your market value. To the extent that you cannot develop alternatives, your market value isn't as high as you might believe, so you will just have to suck it up.

Re: Bonus time: how to play it
 

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I deserve to get paid well.

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Just remember that what you think you deserve will always be higher than what your bosses think you deserve. Always. It's like that for everyone.


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Can I literally get up and walk out of the building?

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I do believe it would be physically possible. Foolish, but possible.

Re: Bonus time: how to play it
 

Negotiations seldom involve what you deserve, it involves leverage, and which side has it.

Currently, if you're getting an above the market pay package, your employer has the leverage. If you're getting less, you do.

Re: Bonus time: how to play it
 

I agree with IBG - you've already put in 10 mos toward your bonus. Keep performing and wait until they give you your number - if you like it stay, if not start looking for another job on their dime.

You have to understand Wall Street - they pay great when times are good and screw people when times are bad even if another department took the firm down.

Re: Bonus time: how to play it
 

What are your alternatives? Leave for another place? Start your own HF? This determines your course of action.