DEFINITION of 'Bullpen'

Bullpen is a slang term given to an area where junior employees are grouped together in a single room. Senior employees graduate to more spacious work arrangements or individual offices. A bullpen seating arrangement is common in specific financial fields, particularly investment banking and investment management, where lower-level analysts all perform similar functions.


The idea behind bullpen seating is that a class of recent hires will join the firm at approximately the same time, undergo training together and then work together to gain experience more rapidly. Bullpen seating also serves as an informal status system, in which employees must work their way up to earn more luxurious working environments. It can also reference the financial term "bull," an investor or trader who takes an optimistic perspective on the market.

Bullpen Advantages

  • Comradery: Working in a bullpen creates a sense of common purpose, which can increase productivity as staff strive to meet set performance goals. For instance, Investment bankers in a bullpen may receive a bonus if their team meets a revenue target.

  • Company Culture: Placing junior staff in a bullpen demonstrates how the company’s hierarchy works. Junior investment bankers who buy into the company’s culture may strive to move up the corporate ladder and become future leaders of the firm.

  • Easier Management: Investment banks may find it easier to manage junior staff in a bullpen. Specific functions can be conducted from a central location to increase efficiency. A bullpen allows recruits to discuss their concerns with each other and share resources. For example, in an employee has an onboarding question, he or she can ask another junior colleague instead of reaching out to the human resources department.

Bullpen Limitations

  • Senior/Junior divide: A bullpen may create an “us against them” culture between senior and junior investment bankers, which could lower morale amongst junior staff.

  • Limited Development Opportunities: Employees who are confined to a bullpen may have limited opportunities to learn from senior investment bankers and ask questions that assist their development. For example, a staff member in the bullpen might want to ask a senior employee if his or her dividend investment strategy is suitable in the current market environment.

  • Increased Risk: Sitting staff in a bullpen may cause an unhealthy level of competition for promotions. Bullpen infighting might result in junior staff taking excessive risks to outperform other colleagues. For instance, an employee may implement an aggressive naked call option strategy to boost his monthly profit. Management can reduce risk by imposing trading size limits for bullpen employees.