Goldman investment banking analyst salary

Investment Banking Analyst Salary Guide

Investment banking analysts are typically hired straight out of college into a two year program, that sometimes extends to a third year.  The investment banking analyst salary is comprised of a base and a bonus.

For a first year investment banking analyst in New York City the base salary is $85,000, and most analysts will receive a year end bonus in the range of $65,000-$75,000. Absolute top performers will get a bonus as high as $85,000.

The all in comp for most 1st year analysts thus comes to around $160,000.

Below is a table summarizing average compensation for 1st year, 2nd year and the increasingly rare 3rd year analyst.

Investment banking analyst salary (New York)

PositionBase SalaryBonusAll-In Comp
1st Year Analyst
  • $85,000 is “standard” at bulge bracket investment banks
  • Lower at smaller regional middle market firms
  • Some elite boutiques are starting at $95,000
  • Some might give a signing bonus anywhere from $0-$10,000
  • Low: $65,000
  • Mid: $75,000
  • High: $85,000
$150,000-$170,000
2nd Year Analyst
  • Second year usually increments up by $5,000
  • $90,000 is “standard” at bulge bracket
  • Low: $75,000
  • Mid: $85,000
  • High: $95,000
$160,000-$180,000
3rd Year Analyst
  •  $95,000 is standard at bulge brackets
  • Low: $75,000
  • Mid: $95,000
  • High: $105,00
$170,000-$210,000

Investment banking analyst salary in London

Investment Banking analyst salaries in London are lower than in NYC.  As is the case in the United States, there is a standard base: In London, almost all firms currently offer a £50k base, growing to £55k and £60k for 2nd and 3rd year analysts, respectively. Salary is comparable to London after adjusting GBP to EUR in smaller financial hubs in Europe such as including Switzerland, Frankfurt and Zurich.

PositionBase SalaryBonusAll-In Comp
1st Year Analyst
  • £50,000 is the “standard”
  • Some give a signing bonus up to £5,000
  • Low: £30,000
  • Mid: £35,000
  • High: £40,000
£80,000 – £90,000
2nd Year Analyst
  • Low: £30,000
  • Mid: £45,000
  • High: £60,000
£85,000 – £115,000
3rd Year Analyst
  • Low: £50,000
  • Mid: £60,000
  • High: £70,000
£110,000 – £130,000

Step-by-Step Online Course

Everything You Need To Master Financial Modeling

Enroll in The Premium Package: Learn Financial Statement Modeling, DCF, M&A, LBO and Comps. The same training program used at top investment banks.

Enroll Today

What determines the size of the investment banking analyst bonus

There are 4 factors that determine the size of the year end bonus:

Factor 1: Performance vs. other analysts in the group  

Analysts are typically placed into 3 buckets of performance. The absolute top performers get 100% of their base as a bonus (and in some rare cases even 105% of base), while the weakest analysts will receive 70% of base at most firms.  At many firms, placing at the bottom of the group is also a not-so-subtle indicator that you will not be promoted to associate down the road.  How analysts rank relative to others in the group – as opposed to how they rank relative to other groups or across other firms, is therefore the most important indicator of the career prospects within the firm.

Factor 2: The success of the group

Investment banks organize their groups primarily around industries (“coverage”) and compete with other firms based on how many deals they closed within each industry.  If an analyst is in an industry group that has closed a lot of deals and brought in a lot of revenue for the bank, the bonus pool for that group will be larger than for less successful groups.

Top performing IB groups by global deal volume through 9/19 (Source: FT)

Factor 3: Success of the firm

At the end of each year, investment banks set aside a % of the revenue generated by the firm for employee compensation.  The better a firm does, the larger the overall bonus pool becomes and the happier everyone gets.  When, on the other hand, a firm’s revenue is lagging, they have to make the decision about whether to cut bonuses and face possible defections.

Top investment banks, by M&A deal volume, first half 2019 (source: Bloomberg)

Factor 4: The type of firm

Not all investment banks are the same. Some work on multi billion dollar deals and exist within a massive global financial institution (bulge bracket firms like Goldman Sachs, Morgan Stanley and JP Morgan), others work on equally massive deals but focus solely on investment banking M&A advisory (elite boutiques like Evercore, Lazard and Guggenheim).  Still others are focused on the middle market. While you can slice these in a variety of ways, compensation is generally fairly well defined at the most “elite” firms:

  • Elite Boutiques – Generally pay the most.  For example, while the standard first year analyst base is currently $85,000, some (but not all) elite boutiques have started offering $95,000 for new analysts.
  • Bulge Brackets & Elite Middle Market Investment Banks – These firms are all generally clustered around the same base comp for analysts, with bonus variation based on the factors we described above.
  • Regional middle market investment banks – These firms tend to be on the lower end of the comp scale, but still fairly close in order to stay competitive in the recruiting process.  Firms that cannot afford the high base and comp generally make up for it with a much better lifestyle (i.e. fewer hours).

Investment Banking Career Path

As banks increasingly struggle to retain analysts who opt for private equity (despite the more relaxed dress code), fewer analysts are staying through their second year, let alone the third year.  Increasingly, analysts that do stay are getting promoted directly to associate (going “A to A”) after two years.

As an associate, compensation rises significantly. The next level up is Vice President, which can make upwards of 500k. Highest on the food chain is the Managing Director, who makes anywhere from 500k to several million dollars.

The Investment Banking Interview Guide ("The Red Book")

1,000 interview questions & answers. Brought to you by the company that works directly with the world’s top investment banks and PE firms.

Learn More

We're sending the requested files to your email now. If you don't receive the email, be sure to check your spam folder before requesting the files again.

Sours: https://www.wallstreetprep.com/knowledge/investment-banking-analyst-salary-guide/

Goldman Sachs joins Wall Street rivals in boosting junior banker salaries

There's a new minimum wage on Wall Street.

Goldman Sachs is giving its junior bankers a pay raise, the last major Wall Street firm to do so in a year where record deal-making activity has led to fierce competition for workers.

First-year analysts — the most junior of investment bankers who are typically recent college graduates — will be paid a $110,000 annual base salary, up from $85,000, according to a person with knowledge of the changes. The person added that second-year analysts will earn $125,000, up from $95,000, and first-year associates will get a $25,000 pay bump to $150,000.

The move establishes a new floor for compensation among major Wall Street investment banking programs. The industry was roiled in March when an internal survey done by Goldman analysts detailed long hours and burnout caused by the deals boom; rivals immediately seized on the controversy to announce perks including $20,000 special bonuses and Peloton bicycles.

But Goldman, which has perhaps the top brand in investment banking, resisted following its rivals in raising pay.

Instead, CEO David Solomon initially told employees the firm was hiring more bankers, automating menial tasks and recommitting to a "Saturday rule" to give workers a weekend respite. The bank had debated internally whether to boost salaries, which are fixed, instead of just making bonuses larger, the Financial Times reported last month.

In the meantime, rival banks including Morgan Stanley, JPMorgan Chase, Citigroup and Barclays all boosted first-year analysts' pay to $100,000 from around $85,000.  That followed raises from Bank of America and other firms earlier in the year.

The industry can afford to be generous: The business of advising on mergers and acquisitions has been red hot this year, with the volume of deals globally soaring past $2 trillion amid a record first half. Investment banks get paid lucrative fees at the close of deals, and larger deals result in more dollars for compensation pools.

Banks often move in lockstep when it comes to pay and perks, hoping to lure enough talented workers to develop a pipeline of experienced dealmakers.

In the end, Goldman not only met competitors' pay, but also exceeded it. The move could ultimately force rivals to match the bank's $110,000 salary for first-year bankers, according to a Wall Street recruiter who declined to be identified.

Junior Goldman bankers also have more news coming: They will learn about the size of their bonuses later this month, according to the person. The percentage of pay a banker makes in so-called variable compensation grows as they climb the ranks.

"We have always paid very competitively," Solomon said last month during an earning conference call. "We have always been a pay-for-performance organization."

—CNBC's Hannah Miao contributed to this report.

Become a smarter investor with CNBC Pro
Get stock picks, analyst calls, exclusive interviews and access to CNBC TV. 
Sign up to start a free trial today.

Sours: https://www.cnbc.com/2021/08/02/goldman-sachs-joins-wall-street-rivals-in-boosting-junior-banker-salaries-.html
  1. Sage goddess
  2. Misterios gozosos
  3. Hyvee perks
  4. Sunday school lesson for 2017

Investment Banking Salary & Compensation

Investment Banker Salary + Bonus:

  • Analyst - First Year: $70,000 - $150,000
  • Analyst - Third Year: $120,000 - $350,000
  • Associate - First Year: $150,000 - $350,000
  • Associate - Third Year: $250,000 - $500,000
  • Vice President: $350,000 - $1,500,000
  • Managing Director/Partner: $500,000 - $20,000,000+

Yes, it's true, monkeys love that hold card cash (and silver bananas). These figures are an approximation based on the user submissions on Wall Street Oasis (over 86,000), as well as the thousands of discussions on compensation in the community archives. Below is a sample table of investment banker salaries and bonuses from the WSO Investment Banking Industry Report (updated daily). If you contribute to the WSO Company Database, you can get access to thousands of detailed compensation statistics across thousands of investment banks without paying a dime. Yes, fellow primates, we love you too!

Investment Banking Salary & Compensation

Investment Banking Report

Bonuses for Investment Bankers by Position

Please note that the figures listed above are approximations and should be taken with a large banana peel. Investment banking compensation at various levels of seniority (in this case pulled from the WSO Investment Banking Industry Report with over 80,000 submissions) can vary widely firm by firm and year by year. This is especially the case for the volatile investment banker bonus. In bad recessions, some banks have even been known to pay out a $0 bonus (oh, the horror!) -- this is sometimes affectionately called "a donut". From analysts to managing directors, the pay is traditionally heavily weighted toward the bonus portion of the compensation, which is part of the reason for such long hours. How else do you think investment banks keep us primates grinding in our cubicles until 4:00am and attached to our phone 24/7? Obviously, these comp figures can vary significantly depending on the firm, division and region, so if you are looking for more detailed or firm-specific salary and bonus data, you should check out the WSO Company Database which has thousands of detailed submissions. Within each company salary page, you can filter by position, city, group/division and you can even slice and dice the compensation by averages, medians, sexes and race on the industry reports.

  • At the analyst level, it is not uncommon to work between 70 to 100 hour weeks at some of the more demanding firms. Most analysts start in the summer and receive their first investment banking analyst bonus around June or July, approximately one year after they start working.
  • At the associate level, the hours are usually still long, however, traditionally 10-20% less than that of analysts. Some associates are internal promotes, but the majority have attained an MBA. Associates also receive a sign-on bonus, traditionally from $10,000 to $30,000, and a stub bonus.
  • The salary and bonus for Vice Presidents and Managing Directors in investment banking has a much higher variance but is usually much more of a function of the firm's performance. At the more senior levels, pay is based more off of individual revenue-generating performance.

Investment Banking Salary at Different Firms

In our salary database, we have compiled a list of the banks that pay the best. Remember, these firms are all ranked based on thousands of Company Database submissions. Click below to access. Investment Banking Company Salary

IB Company Salary Data

Investment Banking Salary Progression - Analyst to MD

Investment Banking Salary Progression - Analyst to MDWSO User @Sil" nicely sums up how bonuses differ based on position in investment banking:

  • No investment banking analyst will get a bonus equal to multiples of his base salary. Typically an IB analyst bonus is between 30-100% of base.
  • As you move up the ladder, the percentage of your all-in comp that is paid out as a discretionary bonus increases because you move from an analytical employee (ie processing the work like a monkey analyst) to one who brings revenue into the bank (bringing in the clients like a King Kong Managing Director)...and you are paid accordingly.

Investment Banking Associate Compensation

For post-MBA associates, all-in compensation varies a good deal with signing bonus, relocation bonus and stub bonus. For base salary, you can expect between $125,000-$150,000. Bonuses are anywhere in the range between $80,000-$200,000. All-in, you can expect anywhere from $200,000-$500,000 with some outliers on both sides and depending on whether you are a 1st-year associate or a more seasoned veteran of the jungle.

Investment Banker Earnings vs. Private Equity Salary

Investment Banker Earnings vs. Private Equity SalaryThere's a lot more variability with private equity salaries because the pay structure is quite different from investment banking. Here's a nice summary of which pays more and what variables determine that by WSO User "Draper_LDN".

  • Depends on the level you are in Investment Banking vs when you enter private equity. If you joined as a previous associate, your salary, bonus, and carry will be higher.
  • The bonus portion of pay at PE firms tends to be slightly less as a percentage of overall comp when comparing PE associates to IB associates. A big part of the bonus is often used for deal carry payments (depending on Fund). The significant potential payment in private equity comes in the form of a carry pay-out, which can take many years all depending on timing, fund structure, employment contract terms, etc. Learn more about private equity carry here.
  • With PE, you are slightly more committed to the fund as you have to stay with the firm until the carry payments are being paid out. A managing director in investment banking could get an annual bonus of $250,000-$1m+, whereas, in PE at a fund that is performing well, you could pull $1.0m-5.0m+ in carry payments each year at the senior level.
  • All in all - you will get rich either way. It all depends on what you like to do! Buy-side or sell-side...investing or advising.

IB Salary in New York vs. Other Cities (LA, SF, Chicago)

One question that we get a lot is whether salaries in investment banking vary depending on where you work. The short is answer is no at the larger banks, however, salaries can vary geographically if we are referring to smaller middle-market or boutique IBs. Here's some notes from @Gbanker74160", who goes into why the pay is similar geographically due to known exit opportunities being better in higher COL cities. "That isn't to say that there aren't strong long-term career benefits to working in NY IB. Namely, there are a ton of financial opportunities in the metro area. In other places, the financial community is smaller and exit/lateral ops might be harder to find. This isn't a huge issue in large cities (SF, LA, Chicago, Dallas/Houston, Boston). But if you're in, say, Charlotte, Atlanta, or Denver, then there's definitely a sizable drop and your prestige point holds true. You can move from NY IB to a HF outside NY. That said, there aren't too many HFs outside NY, relatively speaking, and moving across coasts can be challenging. And being at a NY IB wouldn't specifically help you with this and would probably hurt you compared to someone at a leading group already in the HF's location. So if you want to end up at Oak Tree, Ares, Value Act, Farralon, or what have you, you might be better off starting on the west coast, and the same goes for funds in TX."

Investment Banking Pay vs. Consulting Salary

Investment Banker Earnings vs. Consulting SalaryInvestment banking pays more than consulting, but that's to be expected with longer work week on average (although some might argue that our consulting primates have it just as bad with all of the travel). In general, management consultants out of undergrad typically earn $75,000-$90,000 all-in. Top firms, like McKinsey, Bain, and BCG, pay around $100,000. You can certainly, expect to make more money in investment banking, but you also typically sacrifice lifestyle for that bump in pay.

Banker Average Hourly Wage

Let's do some quick math. Let's say a top investment banking analyst at a bulge bracket investment bank works on average 80 hours/week over 52 weeks and is paid $130,000 all-in. This would imply an hourly wage of $31.25. Using those numbers as a rough guideline, the typical junior investment banker makes between $25 - $35 per hour (pre-tax).

M&A Salary and Top IB Group Comp

Obviously now that we've enlightened you it's clear that investment banking is a well-compensated field. There are few jobs that pay six figures to college graduates right out of school. It's important to note that when looking at these average banker salaries, some of the top groups like M&A and top industry groups at the elite investment banks (like TMT at Goldman Sachs) pay even more than these average comp figures we're quoting. This is true especially in the higher cost of living cities like New York and London. That said, the real money is at the top. Even if you find investment banking isn't for you long term, enduring an analyst or associate stint can teach you an incredible financial skillset, build a great network, and open doors to incredible exit opportunities into other attractive career tracks.

Want Investment Banking Compensation, Company Reviews, and More?

The Wall Street Oasis Company Database is the most complete database available. You can find thorough reports on hundreds of firms across the finance industry (investment banking firms, private equity firms, etc.) including compensation figures, company reviews, and insight into the interview process. All you have to do is add salary data or subscribe to gain access.

Interested in Investment Banking - Breaking In

The fact of the matter is you won't improve unless you practice. To have any chance at the technical questions, you need to prepare yourself with legitimate questions. The Wall Street Oasis Investment Banking Interview Course is designed by countless professionals with real-world experience, tailored to help you break into investment banking by acing the technical questions.

IB Interview Course Here

Sample Compensation Distribution in WSO Company Database Shown Below (for HSBC)


Sours: https://www.wallstreetoasis.com/salary/investment-banking-compensation

If you're new here, please click here to get my FREE 57-page investment banking recruiting guide - plus, get weekly updates so that you can break into investment banking. Thanks for visiting!

Let’s skip the clever introduction and look at the full, updated numbers for investment banker salary and bonus data as of 2021:

Position TitleTypical Age RangeBase Salary (USD)Total Compensation (USD)Timeframe for Promotion
Analyst22-27$85-$95K$130-$200K2-3 years
Associate25-35$150-$200K$250-$450K3-4 years
Vice President (VP)28-40$250-$300K$400-$700K3-4 years
Director / Senior Vice President (SVP)32-45$300-$350K$600-$1,000K2-3 years
Managing Director (MD)35-50$400-$600K$1,000K+N/A

UPDATE: As of mid-2021, banks have increased Year 1 Analyst base salaries to $100K, with bumps to $105K and $110K for Year 2 and Year 3 Analysts, so the figures presented here will be higher going forward. It’s not yet clear how these higher base salaries will affect year-end bonuses, but we’ll update this article once the data is available. Some banks have also increased Associate base salaries.

These are average ranges atbulge bracket and middle market banks in the U.S.

Yes, the elite boutiques often pay above these ranges.

Yes, if you’re at a regional boutique, you’ll often earn below these ranges.

And yes, the numbers are different in places like London and other non-U.S. locations.

We’ll describe these variations and what to expect at other banks and in different regions below, but I want to start with how compensation works at a high-level:

Investment Banker Salary and Bonus Levels: The Main Components

For most bankers, there are six main components to “compensation”:

  1. Base Salary: This is what you earn via paycheck or direct deposit every two weeks. It increases a bit each year, and it’s a stable, reliable income source because it does not change based on your performance (well, unless you get fired).
  2. Stub Bonuses: Since Analysts and Associates graduate from university or MBA programs and start working in the middle of the calendar year, they receive “stub bonuses” for their first ~6 months on the job. These are typically a low percentage of Year 1 base salaries, such as ~20-30%.
  3. End-of-Year Cash Bonus: You earn this after your first full year of work, and as an Analyst or early-stage Associate, it’s paid 100% in cash. At some elite boutiques and other, smaller banks, it remains 100% cash as you move up the ladder. But at the bulge brackets and other publicly-traded banks, a high percentage turns into deferred, stock-based compensation. The year-end bonus is a percentage of your base salary, and it varies heavily based on deal flow, your performance, and industry-wide compensation. It might be as low as 50% of your base salary or as high as 200% (or more!), depending on your level.
  4. Stock-Based/Deferred Bonus: Starting as a Year 2 or 3 Associate at the larger, publicly-traded banks, a portion of your total bonus (maybe ~20%) will become deferred and paid in stock that vests over several years. This deferred percentage will increase as you move up. Banks do this partially for regulatory reasons and partially to incentivize you to stay at the firm.
  5. Signing Bonuses: This one applies to Analysts and Associates who graduate and accept full-time offers. This signing bonus might be around $10-$15K at the Analyst level and $50-$60K as an Associate.
  6. Benefits: Finally, you’ll get health insurance, vacation days, and potential participation in the firm’s profit-sharing or 401(k) retirement plans. These are useful in the U.S., but not quite as valuable in places with universal healthcare – or, at least, “better healthcare” – such as Canada, Australia, and Europe.

Recent Changes and How COVID Affected Investment Banker Salaries

When the pandemic began last year (2020), everyone freaked out about deal activity and wondered how bonuses and total compensation would be affected.

While M&A activity fell off a cliff for a few months, equity and debt issuances surged as central banks committed themselves to endless money printing.

And then M&A activity rebounded in the second half of the year as companies realized that the pandemic would not mean the end of human civilization.

As a result, the numbers didn’t change by a huge amount, but there were some notable differences:

  • Pay Starts to Vary Even More Widely: Increasingly, different banks and groups are paying different base salaries and bonuses, so it’s a bit difficult to determine the proper “ranges” these days. For example, bulge bracket compensation wasn’t that great this year, but elite boutiques and certain middle market banks paid quite well – sometimes well above the compensation at larger firms.
  • Senior Banker Pay Up and Analyst Pay… Sideways? Base salaries at the Associate level and beyond are up slightly over the past few years, while Analyst base salaries haven’t changed much at the BB banks. The bonus range for Analysts also seems to be wider now (“COVID impacted different groups differently!”), which means that the average entry-level compensation be down a bit.
  • Faster Promotions: Banks have been accelerating the Analyst to Associate promotion timeline and even the Associate to VP and VP to Director promotions, all to incentivize long-term careers.

Finally, work from home (WFH) has proven to be a double-edged sword.

Working from home is nice if you already know the job, your team, and your clients, but it is not the ideal way to onboard new hires.

It’s fair to say that morale is down, and turnover is up at most banks.

Some groups have even struggled to retain new hires in this environment.

Investment Banker Salary: Analysts

UPDATE: As of mid-2021, banks have increased Year 1 Analyst base salaries to $100K, with bumps to $105K and $110K for Year 2 and Year 3 Analysts, so the figures presented here will be higher going forward. It’s not yet clear how these higher base salaries will affect year-end bonuses, but we’ll update this article once the data is available. Some banks have also increased Associate base salaries.

The “standard” progression for Analyst base salaries is $85K, $90K, and $95K over three years at the large banks, with bonuses that might be ~50% to ~100% of base salaries.

BUT there are plenty of exceptions.

For example, some of the elite boutique banks start at $95K base salaries and move up from there, and 3rd Year Analysts might end up with base salaries more like $110K or $115K.

Some of the EB banks also pay bonuses that represent more than 100% of the base salary, so some EB Analysts could earn over $200K.

On the other hand, if you’re at a regional boutique bank, your base salary might be closer to $70K or $75K.

You’ll probably earn at least $100K total even at that level, but it will be a closer call.

That might not be too bad because $100K in Ohio is very different from $100K in NY, but you should be aware of these differences.

Investment Banker Salary: Associates

At the Associate level, base salaries tend to start at $150K and progress up to $200K in $25K annual increments – but there is some variation.

For example, some Associates might start at a lower base salary in the “stub period,” such as $125K or $140K, and then move up to $150K in their first full year.

Bonuses are usually around 70% to 125% of base salaries at this level, but they could be as low as 50% depending on the bank, group, and your performance.

And some elite boutiques – and even stronger groups at certain middle market banks – pay bonuses worth more than 125%.

So, there are examples of IB Associates earning more than $450K, though they’re not the norm at most banks.

Investment Banker Salary: Vice Presidents

At large banks, investment banking VPs usually start at $250K base salaries.

Some banks increase this base salary by $25K per year, while others keep it flat at $250K even as the VP advances.

At smaller banks and in regional offices, VPs might start with base salaries closer to the $200K – $225K range.

Bonuses tend to represent 100% – 150% of base salaries, but the percentage could be lower at smaller firms and in regional offices.

Also, some smaller firms pay base salaries below these numbers but offer higher bonuses if enough deals close.

Investment Banker Salary: Directors

I’ll be honest: I couldn’t find much good data for Director / SVP salaries and bonuses, so I’ve assumed a modest bump over the previous levels.

Base salaries do not necessarily advance a huge amount at this level (maybe a $50K bump over VPs?), but bonuses can grow substantially.

Of course, the percentage of your bonus that is deferred and paid in restricted stock also grows substantially, at least at the large, public banks.

Investment Banker Salary: Managing Directors

Managing Director compensation is highly variable because the year-end bonus could be almost anything.

It’s linked directly to the deals you close and the fees you generate, so average compensation at other banks doesn’t matter.

In a bad year, the year-end bonus might be $100K or even $0 – but it could also be $1 million or into the low millions.

On average, across all banks and firms in the U.S., MDs who perform decently probably earn around $1 million total per year.

And if you want that money in cash rather than restricted stock, work at a privately held elite boutique bank.

Regional Differences and London Compensation

If you’re in the U.S. but outside major financial centers and/or at a smaller bank, you should expect discounts to all the figures above.

You’ll still probably break $100K as an Analyst, but total compensation at each level might be 25-50% lower.

We get questions about pay in London, and I always respond by pointing out the Arkesden compensation reports.

In case you’re too lazy to click through and read:

  • Analyst: £50K – £60K base salaries and total compensation of £80K – £120K.
  • Associate: £80K – £120K base salaries and total compensation of £150K – £220K.
  • VP: £150K – £160K base salaries and total compensation of £240K – £330K.

At a 1.39x GBP/USD exchange rate, these translate into much lower numbers.

Compensation is significantly lower for a few reasons:

  • Currency Fluctuations: Banks set salaries in London when the GBP was much stronger against the USD, and they never adjusted as the GBP kept falling.
  • Better Lifestyle/Hours (maybe?): While the hours are still intense, it’s fair to say that you’ll be working less in London than in New York. There’s more of a cultural acceptance of “free time” and concepts such as vacations.

Investment Banker Salary and Bonus Levels: Is the Money Worth It?

Whenever I publish a salary and bonus update, the comments inevitably turn to two main questions:

  1. But I’m in Region X, not the U.S. or U.K. How does the pay compare?
  2. Is finance a good career? And is investment banking the best option if you want to become wealthy quickly?

The investment banking industry is so much bigger in the U.S. and U.K. than it is in other regions that there isn’t much data from other places – so I don’t have firm answers to the first question.

In general, however, you should assume anything from a modest discount to a substantial discount to the U.S. numbers.

For example, IB compensation in Australia tends to be in between the London and NY numbers.

But if you’re in an emerging market like Mexico, expect substantially lower numbers (think: 75% discount) because the cost of living is so much lower.

As for the second question, it depends on what you mean by “wealthy” and “quickly.”

In a place like NY, taxes and the cost of living are high, so you will not be able to save much of your base salary until you move up the ladder.

Therefore, as an Analyst or Associate, most of your savings will come from your year-end bonus.

If you stay in the industry for 4-5 years, perform well, and avoid spending like a drunken sailor, you could save up a few hundred thousand USD.

That puts you in a great position for your age group.

On the other hand, you’re not going to hit a net worth of $10 million by age 30 just from IB salaries and bonuses and modest saving/investing.

Realistically, you might reach that level if you get promoted to Managing Director and perform solidly over a long period or have a few blowout years.

OK, But How Easy Is It to Advance to the MD Level?

It’s quite difficult, and the vast majority of people who enter IB as Analysts or Associates quit, switch to other jobs, or fail to get promoted.

For more about the skills required, see the article on the IB Managing Director job.

It’s not that challenging to advance to the Associate or early VP levels, but promotions beyond that become increasingly difficult.

If you hate the job, you will not make it past the mid-levels.

I’d also point out that the hours, lifestyle, and morale have gotten worse over the past year due to the shift to working from home.

Even if you don’t like the job itself, going into the office each day makes it more tolerable.

You’re in a separate space, you probably have a few friends there, and you can interact with people face-to-face before they start giving you work.

By contrast, working from home all day… every day… with no real-life interactions… is depressing.

I’m sorry, but video calls are not substitutes for in-person human relationships.

I realize that working from home won’t “last forever,” but it has gone on far longer than anyone predicted.

Even if bankers eventually return to offices, WFH is likely to continue for at least part of the time.

The bottom line is that you need to take an honest look at your personality and goals to decide whether or not the money is “worth it.”

If your goal is to earn, say, $200K to $300K per year and have a comfortable lifestyle, there are plenty of other ways to do that.

For example, you could join a large tech company, work in commercial real estate, go into corporate development, or go to a direct lender or another credit-related role.

And then there’s the quant fund route if you’re more technical.

The internet is obsessed with IB careers, but they’re not right for most people.

On the other hand, if you want to earn significantly more than $200K to $300K per year as quickly as possible – even if it means killing yourself – few options beat IB.

So, you should probably ignore all these considerations and pursue your goal relentlessly.

About the Author

Brian DeChesare is the Founder of Mergers & Inquisitions and Breaking Into Wall Street. In his spare time, he enjoys memorizing obscure Excel functions, editing resumes, obsessing over TV shows, traveling like a drug dealer, and defeating Sauron.

Sours: https://www.mergersandinquisitions.com/investment-banker-salary/

Analyst salary goldman investment banking

Yes, barbarians, barbarians because they drink undiluted wine, do not shave their beards, and wear pants. And these very barbarians will, like pigs, slaughter those whom only by misunderstanding are called men, and their wives will please the victors. They do it now, and with pleasure. Junia Carra.

Oksana quietly moans and keeps unnaturally straight. As it turned out, when taking butter from all the boxes for analysis, she pulled the bottom box, of course jerking it sharply, and now her back hurts badly. Okay, let's take care of the beauty. Having closed the door with a key, I took off her jacket and impudently pulled off her blouse, greatly poking at the sight of her breasts in a.

Now discussing:

Needed the so-called "Diana" (her name is clearly the same as her hair color) for the classics, and not for such sophistication. By the way, it's nice to remember Diana, she was so not indifferent in her work, so flowed. It's even strange that such a nice person had such a low price.



4 5 6 7 8