long term perm bonus beats day rate?

**Pickle2** · 5 May 2009, 10:42

Because who the feck wants to stick around in an IB for 10+ years?

**b0redom** · 5 May 2009, 10:43

[QUOTE=aussielong;833434]
In the long term, if you stick around an investment bank as a permie for 10 years - eventually your bonuses will leave you far richer than if you contracted all that time. IT permies who stick around for 10+ years can be on 100-200K annual bonuses.

Unemployed after their institution has collapsed.

**Lockhouse** · 5 May 2009, 10:45

Originally posted by aussielong View Post

It was pointed out to me today that 800 pounds a day is a short term strategy.

In the long term, if you stick around an investment bank as a permie for 10 years - eventually your bonuses will leave you far richer than if you contracted all that time. IT permies who stick around for 10+ years can be on 100-200K annual bonuses.

So, if in the long run I am better off perm, why bother contracting?

Most contractors don't move around much if they can avoid it, so I don't buy the lifestyle argument.

It's the pension that makes the difference in the long term. Even the relatively junior people I've worked with over the past 20 years now have decent pensions sorted.

**d000hg** · 5 May 2009, 10:47

[QUOTE=b0redom;833440]

Originally posted by aussielong View Post

In the long term, if you stick around an investment bank as a permie for 10 years - eventually your bonuses will leave you far richer than if you contracted all that time. IT permies who stick around for 10+ years can be on 100-200K annual bonuses.

Unemployed after their institution has collapsed.

Good point, except for the minor point that hordes of contractors are also out of work and are only experienced in the IB world.

**dozer** · 5 May 2009, 10:48

did anyone get a bonus this year or expected to get one in the next? performance reviews, extra wank etc.....

**aussielong** · 5 May 2009, 10:48

Originally posted by Lockhouse View Post

It's the pension that makes the difference in the long term. Even the relatively junior people I've worked with over the past 20 years now have decent pensions sorted.

Do you mean that if you contract you have more cash earlier. So you can put it into a pension earlier and in the long run compound interest will leave you considerably better off than if you slowly drip feed in cash like a permie would?

**sasguru** · 5 May 2009, 10:55

You missed the best option:
Get a massive salary that beats the average contractor income PLUS all the benefits.

HTH

**swamp** · 5 May 2009, 10:57

£800 a day is nearly £200K a year. The contractor makes £2m gross in ten years.

Meanwhile the permie makes £200K bonus after ten years' hard service.

Contractor has retired to the sun to enjoy the fruits of their labour, and the permie is only just starting to earn their wad.

**aussielong** · 5 May 2009, 10:57

Originally posted by sasguru View Post

You missed the best option:
Get a massive salary that beats the average contractor income PLUS all the benefits.

HTH

I can't beat 800 pound a day as a permie programmer.

Can you SAS?

long term perm bonus beats day rate?