What Is a Bonus Bucket?
Investment banks pay analysts a base salary that is the same for everyone at a level, and a year-end bonus that is not. The bonus is set by ranking every analyst in the class and sorting them into tiers, from top bucket to bottom bucket, sometimes with a middle tier or two between. The bucket determines the bonus, and the spread between buckets is wide. A top-bucket first-year analyst at a bulge bracket might receive a bonus close to their base salary; a bottom-bucket analyst in the same class might receive half of that.
How Rankings Are Decided
Each analyst is reviewed by the bankers they worked with during the year, from associate up to managing director. Reviews are numerical and written. The staffer and group head then rank the class in a meeting, and the ranking maps to buckets. Being staffed on live deals with senior bankers who write strong reviews matters more than raw hours.
Why It Matters Beyond Money
Bucket is the group's record of how it rates you. It drives A2A promotion decisions, and private equity headhunters ask about it directly. Banks hiring laterally ask too. The dollar difference in year one is real; the signal is what compounds.
