Two offers - help with negotiating

Hi, long time reader. First have to say this forum has helped me immensely since the day I started the CFA process to the day I broke into my first wall st. job, which I am moving on from now. I would appreciate your guys’ thoughts on the two offers on the table and how to get the most of the situation.

I’m currently a sell side equity research associate at a mid-tier bank in the US/ globally better known (think BNP, Soc Gen). I have been covering the same sector for 2 years and just received my charter this year. My end goal is to become a PM at a top hedge fund but I am willing to be patient and learn as much as I can before crossing the wall. My current analyst is great to work for and I probably won’t find anyone so laid back and accommodating on Wall St. again, but I’m limited with client exposure as most of his clients are offshore, and although I learned a lot I think I am beginning to be feel a bit complacent. Combine that with a shitty bonus that doesn’t look like it’s getting better any time soon I started my interview process and landed two sell side offers from top 10 BB banks (think UBS, Barcap).

Offer 1: came first, junior associate, 100k base, 15-25k bonus (verbal only, which I know means nothing but insiders tell me is the right range), same sector, analyst has 10+ yrs experience with mostly US clients with a few in my target list of firms that I want to work for, and I will be working with 1 senior associate who looks to be aggressively interviewing for the buy side.

Offer 2: 120k base, junior associate, bonus unknown but last year was not good from what I hear (guessing 0-15k), same sector, analyst also has 10+ yrs but worked outside of US and is coming to the US for the first time so most of his clients are foreign, I.I. ranked and wants to become ranked in the US in the next 2 years (his own words, “next few years won’t be very fun”), will be working with 1 senior and 1 other junior associate.

Both firms tout giving their associates coverage early and putting you on the front line talking to clients, as you would expect. I am convinced that the first offer is the right one for the long-term given his US client base and the other associate’s potential departure which would bump me up in seniority and get me coverage relatively soon. I would really like offer 1 to match or do better than offer 2’s 120k base (offer 1 doesn’t know of the other offer yet), but I’m a terrible negotiator so wanted to see if anyone can offer me some effective ways to execute this. I’m going back to Offer 1 Monday to negotiate so any response before then would be greatly appreciated. Thanks guys and apologies for the lengthy post.

Think JPM or GS kid

Offer 1 but to be honest, I’m not sure either will be that helpful as a direct stepping stone to a top hedge fund. The sell side is just not that relevant, though you do have to start somewhere.

I am convinced that the first offer is the right one for the long-term given his US client base and the other associate’s potential departure which would bump me up in seniority and get me coverage relatively soon.

^ This is right

You can ask about the base, but I wouldn’t worry too much about that, just make sure you are getting on the best track you can. People systematically place too much emphasis on early career dollars. The potential $10k difference is irrelevant if you get on a track to making a million a year.

Bromion, thanks for the response. I remember us talking when I was deciding between offers for the first job which was very helpful. Do you have an email I can reach you at? Tried your old one and got a sendback. Thanks.

bromion1@gmail.com

offer #1 sounds like Lazard, offer #2 definitely sounds like Credit Suisse or some European/Swiss bank.

anyway, I would definitely take offer #1 for so many reasons. foreign ER is different, and you won’t develop the connections you want - i’ve seen firsthand foreign ER seniors thinking the US will be similar (IT WON’T), US ss er is easily the most cut throat and sophisticated with the best people, the money will even out with bonus I wouldn’t worry (all SS firms will lie to you about “coverage” asap, and there’s no way they have to keep it). First, secure offer #1 in writing, and set expectations that you have another formal offer pending. they will probably give you a minor bump on number. If not, you can express that the other offer is $X, you don’t have to reveal that much beyond that. they will hold steady or raise. but at the end, I would def take job #1

First one sounds like Evercore kid