How do banks decide how big of a bonus each person gets?

Bonus season is around the corner and I’m wondering how does this process work exactly? How do managers decide how much you get?

Basically, the process goes as follows at banks: the head of markets receives the total sum of money and he gives a sum to each of the big heads under him/her and each of those heads do the same etc. until it reaches the heads of each desk. Then, the heads of each desk will decide how much each person on their team gets but they may also get feedback/pushback from a person on the team who thinks someone should get more/less and so this may lead to further negotiations. Hope this clarify things!

1 Like