After years and years of stagnating starting salaries, firms finally got the memo and buffed the numbers in intern offers. Good. Took them long enough.
As we’ve discussed before, it is no longer a fact that interns are basically guaranteed an offer unless they screw up in a significant way. Firms are trimming their intern classes and lowering their graduate hiring targets but at least they’re being generous to those who do receive an offer.
These larger starting salaries are starting to have an effect down the road as jumps to industry aren’t always the huge bump they used to be now but we can talk about that another day.
Is the profession headed in the right direction? Any other unintended consequences of fat intern offers you’d like to discuss? Have at it.
Just last week we learned that compensation discussions at McGladrey were going to be occurring in the coming days and weeks and it appears things got rolling right away and there are even some numbers to report:
We just received correspondence from national regarding our Firms performance and a cryptic breakdown regarding upcoming comp discussions [memo after the jump].
Furthermore, they have begun the comp discussion process in the southeast. Apparently the partners received official compensation breakdowns for each employee either Wednesday or Thursday of this past week. A newly promoted senior i their discussion already and he received a 11% raise and $1k bonus.
To circle back to correspondence from C.E., I think it’s particularly insulting that he mentioned that “this year, as in previous years, we will continue to follow a “pay-for-performance” approach when it comes to individual compensation”; Interesting how there were people who received 5s last year who received a 0% raise in 2009, and those promoted received what amount to an inflation adjusted raise-just under 4%.
So 11%/1%? Thoughts anyone? If you’ve received your numbers, report below.
It’s also worth noting the following from C to the E and Dave Scudder, “In spite of a very weak economy, we held our own. We had several unique one-time charges that impacted our profitability (see Rene’s financial update on The Point for more details). Without these, our pre-tax margin would have been essentially flat with last year.”
So “we had a pretty solid year if you ignore a few major things,” is more or less an echo from the H&R Block press release that we saw late last month. In case you forgot, those one-time charges include costs associated with the little divorce and reconciliation between RSM McGladrey and McGladrey & Pullen as well as a goodwill impairment charge.
Despite the tough year, leadership assures everyone that the good times will continue to roll at Mickey G’s, “You’ve seen a number of exciting announcements in the last month, and let us assure you that the good news is going to keep coming.” In other words, more golfers that aren’t Natalie Gulbis and plenty of refreshments.
