Why does GS have a discount when MFs don't?
The GS discount exists because of the firm's brand name, but from what I understand, being an analyst at a widely known mega fund like BX would carry far more weight. Despite this, analysts at mega funds have similar all-in compensations as analysts at higher-paying BBs if not EBs. How is GS able to maintain the discount as more mega funds opt to create analyst programs, or conversely, why don't mega funds discount using a similar argument as GS? I'm guessing the skillset of PE analysts might be a factor but was curious if other people had any thoughts.
Because your grandma has never heard of bx.
lol i agree with this take
Let’s turn Goldman Sachs into Gayman Sachs, it’s pride month after all
Because people want to work at GS to go to MF
But people want to work at MF for money
BX has a discount...
nope not anymore
My guess is because Goldman takes silly university students who value prestige a lot more than those who have been in the industry for a few years. I would also guess that prestige matters more in your early career years in opening doors, the more specialised you become the less prestige matters.
This may be off, but I think Goldman's relationship managers are paid very well (so they don't defect), while junior bankers receive the Goldman discount.
Definitely off. Gap grows as you go up in title. At the junior levels it’s somewhat lower but not wildly off from average bulge pay.
All else being equal, 1st year GS analyst still crushes any of his undergrad peers who aren't in IB in terms of all-in comp.
It's still extremely lucrative.
That’s probably not true. All-in comp for 1st year software engineers at Google, Facebook, Amazon, etc. is on par if not higher.
It's an outdated mindset. I honestly think the GS prestige is nowhere near what it used to be. All the info you ever need is readily available on the web and kids from undergrads and MBAs aren't choosing banks solely out of "prestige" or name their parents have heard of anymore. GS in fact had a lower acceptance yield compared to competitors (Evercore, PJT and even Morgan Stanley) from my uni
This x1000.
Prolly sheer math of #s. Same reason Apollo can pay their Associates so high. Anyone know the actual class size of GS vs MF analysts?
Then why is there no Citi discount?
bc citi is ass
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