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Hi can we check PMR in workday ?
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What are "paper pushers" called nowadays?
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What makes you really happy?
Had 2 hours of billable work today 💀
When do we find out about raises?
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PwC with the cohort model has effectively done this. All within a cohort get the same base. Performance drives bonuses.
I think this is out of necessity more than on purpose. So much of IB fees in particular are contingent on deals closing, so it’s safer to have a smaller base and then blow out bonuses when they know how they did for the year. PA work is much more recurring or at least more estimable at the beginning of a project but with less variable upside, so a higher portion of comp can be safely “guaranteed” through the salary component (keeping in mind the comparison is only for salary and bonus percentage portions of total comp. obviously the actual total comp is wildly different)
Ah very good point. Thank you
Because bill rates are lower so they’d have to lower partner profits
Assuming the same total comp? I'm not sure why I'd want that. It would just make my per paycheck significantly lower in favor of getting a single fat paycheck at year end. I guess that disincentives people leaving before bonus, but then everyone leaves right after. Also as someone else said, public accounting is much more fixed fees I feel instead of say returns on IB portfolios or deals
I think you’d also have to reduce the number of people coming into PA and have the remaining work longer and take on more of the work to offset. I think audit is just too crowded to do this effectively. Also, I don’t think you’d be able to lower pay to offset the increase in bonus as starting salaries aren’t the highest to begin with. You’d still need to provide enough of a salary for the person to make it through the year to collect their bonus. So, IMO to have this sort of pay structure, you’d have to increase starting pay, reduce employee count, and raise work expectations. There’s a reason why IB teams pay one starting associate 100k -120k + bonus instead of two people at 60k + bonus.
Bonus in public isn’t high enough.