There is no easy formula for determining banker compensation. At the analyst and associate level, for whom this blog is targeted, compensation is relatively similar across the board. Boutiques and bulge bracket investment banks pay their analysts and associates similarly; variations exist but compensation figures end up in the same ballpark. The largest discrepancies in compensation stem from the difference in bonuses which are derived from the combination of firm performance, group performance, and personal performance.
Banker compensation is down from its heights of a few years ago. Most young bankers understand that banking at the analyst level is not about compensation, rather its about establishing a career trajectory. There are other jobs for maximizing wage per hour.
The table below is a fair representation of banker compensation at different levels of seniority.
Salaries in Investment Banking (with bonus) | |||
| Job Level | Salary Range | Typical Comp | Prerequisite |
| 1st Year Analyst | $60K - 150K | $90K | Bachelor's |
| 3rd Year Analyst | $120K - 300K | $150K | Bachelor's |
| 1st Year Associate | $150K - 250K | $170K | MBA |
| 3rd Year Associate | $250K - 450K | $300K | MBA |
| Vice President | $350K - 1MM | $500K | 3-6 years |
| Director / Principal | $400K - 1.5MM | $700K | 5-10 years |
| Managing Director | $500K - 20MM | $800K | 7-10 years |
| Department head | $800K - 70MM | $2MM | 10+ years |
Demystifying your MD's compensation is next to impossible but he (or she) rakes in on average a couple million bucks per year. Not a bad salary for a 9-5 job.
8 comments:
Hi Friends,
Investment bankers are trusted to make investment decisions under severe time pressure and not to lose the company money. They offer their expert advise as to where companies should put their money as well as providing advice on transactions such as mergers and acquisitions. Thanks a lot!
Investment banking is never a 9 to 5 job.
Hi friend
my name is diana
and a banker should get near 13,00000 thousand dollers a day home.
Hi friend
my name is diana
and a banker should get near 13,00000 thousand dollers a day home.
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Don't trust anyone's opinion who cannot spell the word "dollars" correctly.
Investment banking is NEVER a nine to five job. An "early" day ends at 10.
Those guys are over paid. Financial services creates nothing.
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