WHY I WALKED AWAY FROM OVER $200,000 AT MORGAN STANLEY

@thewallstreetskinny

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The VP Curse

Why it worked

The video taps into a common aspiration and fear related to high-paying finance jobs, using a relatable scenario (leaving a lucrative job) and a specific, intriguing problem ('the VP Curse') to draw viewers in. The use of a compensation table provides concrete data to support the narrative, making the information feel authoritative and valuable.

Summary

The speaker explains why they and others left high-paying VP roles at Morgan Stanley, detailing how compensation is structured with cash, deferred cash, and deferred stock. This structure makes it financially disadvantageous for individuals to leave the firm, as their deferred compensation becomes very expensive for a new employer to buy out.

Structure

1Introduction to leaving high-paying roles
2Explanation of VP compensation structure (cash, deferred cash, deferred stock)
3The disincentive to leave due to deferred compensation
4The high cost of buying out deferred compensation for new employers

Original caption

I walked away from hundreds of thousands of dollars of my bonus when I left my V.P. role at Morgan Stanley. And I'm not alone --- more rising stars than ever are abdicating elite roles across the street. Why are people folding a winning hand just when their career is really taking off? If you want to know why and what I'd do differently today TO FIX IT, read our hot take on how to escape "the V.P. Curse" on our Substack now! #investmentbanking #privateequity #hedgefunds #womeninfinance

More from @thewallstreetskinny

Product placement

The video discusses compensation structures in investment banking, specifically mentioning Morgan Stanley and the breakdown of cash, deferred cash, and deferred stock. It also shows a table detailing compensation by level.

Call to action

Read our hot take on how to escape "the V.P. Curse" on our Substack now!

On-screen text

WHY I WALKED AWAY FROM OVER $200,000 AT MORGAN STANLEY You could be a ten years, right? some people never leave the VP jail. For those VP's, that $500k, Investment Banking Compensation: Overall Level Avg Base Avg Bonus Avg Total Comp Avg Hours 75% Pct Total Comp Analyst $97,059 $51,912 $162,971 76.5 80.0 $162,971 Senior Analyst $117,139 $75,000 $202,129 71.4 80.0 $202,129 Associate $165,947 $113,776 $279,525 68.4 80.0 $279,525 Senior Associate $195,525 $165,000 $358,725 61.2 70.0 $358,725 Vice-President $257,000 $152,207 $409,207 70.6 $500,000 DATA COURTESY OF: BUYSIDE HUB your bonus. It will likely a third, CASH DEFERRED CASH DEFERRED STOCK a third, deferred cash invest, actually get access to. in investments can't touch. And then a third deferred stock that vests like a year timeline. So that's all of a sudden be really disincentivized to leave the firm. And to your why at this point people are like, I'm cheap enough buy me out of all of my accumulated compensation and have it financially. Versus, years of that and someone pay for you, buy you deferred, very expensive

Transcript

You could be a VP for like 10 years, right? Some people never leave the VP jail. For those VPs, that $500k, that $500,000, the part that is your bonus. It will likely be something like a third, a third cash, deferred cash that you can invest, but like you can't actually get access to. And then a third deferred stock that vests like on a three to five year timeline. So that's when all of a sudden you'll be really disincentivized to leave the firm. And to your why at this point, Kristen, people are like, I'm cheap enough that someone can buy me out of all of my accumulated compensation and have it make sense for them financially. Versus, you add up enough years of that and someone needs to pay for you, buy you out of all that deferred, you become a very expensive