Jared Chung
CareerVillage.org TeamWhat is the typical compensation range for a first-year investment banking analyst?
Please tell us what the common compensation range is, what the components of comp are, and how a student would decide if they're getting a reasonably attractive offer.
Some common parameters that might be helpful: assume that the range is for a job straight from college based in New York city. If you have perspectives on other locations, please share that with us as well. #finance #investment-banking #compensation
4 answers
Nils Holum
Nils’s Answer
First year investment banking analysts at bulge bracket banks receive a salary of $70K. Bonuses have fluctuated dramatically over time, but are expected to be around $60K for FY2011.
<html><head></head><body>What the bulge bracket is in case someone has not heard of the term before: <a href="http://en.wikipedia.org/wiki/Bulge_bracket" rel="nofollow">http://en.wikipedia.org/wiki/Bulge_bracket</a></body></html>
Conor Myhrvold
Jared Chung
CareerVillage.org TeamJared’s Answer, CareerVillage.org Team
The answer has changed over time, as profits in the financial services industry have fluctuated. What is clear is that if you are working in New York for a major investment bank, an analyst straight from college is being offered anywhere from $100-$130k before bonus. Bonuses are very hard to predict because they are usually based on market conditions, but can easily add several tens of thousands of dollars on top of that base range.
Your salary at a large bank will vary 70-95k plus 30-100k bonus for the first three years. At a smaller bank base could be lower and bonus more variable but either way the earning potential is high is you perform well. What should be noted is that you could work 90-120 hours a week so per hour your salary is not high. If you are in nyc you pay state and city income tax at a high rate further depressing your real earnings, to say nothing of the height rent, food, and entertainment costs.
Getting into investment banking for the money as an analyst is an unwise move. If you want to stick it out and become a senior banker or move to private equity you might see some return on the substantial time investment you make as a junior banker.
David Zazula
Thomas Halsted
Thomas’s Answer
This is great feedback Thomas! I'd say anywhere between 95k-140k but can also depend on the annual bonus :)
David Forsyth
Philip Tolbert
Philip’s Answer
You might want to check https://www.glassdoor.com/Salaries/index.htm as well.