Archive for June 2011

Salaries in Investment Banking – Investment Analysts

frankfurt-river-bank-scenery-with-skyscrappers-may-2011-courtesy-of-wwwrecenziaro-2 Here we have compiled a short list of what an investment banker can expoect to be paid depending on the seniority and the experience.

As a general remark, 2011 is seeing a return to normal levels of pay (before crisis, id est to 2007-2008 level). This doesn’t mean unrealistic expectations from your side, but rather a coming back to normal.

As a general rule, the starting salaries for a junior investment banker range from $90,000 to $150,000. These salaries are paid usually in US by the large investment banks who operate there (salaries in Europe will be at 70-80% usually, translated in Euros at spot rate – if you can read this you can do the maths). Bonuses range from 10% to 80% and are included in the above figures anyhow. Lately the banks are trying to pay less cash and move more to offering share options even to the newcomers. This might not be a bad move – as Harvey McKay said, “it is better to own 1% of something than to control 100% of it). Read more

Tech Bubble Bursting or Still Ongoing?

yandex-image-and-logo-courtesy-of-the-investment-blog-doitinvestcom Just as we discussed about the LinkedIn IPO, another piece of news hits the shelves of Internet. Yandex, Russia’s largest search enngine (and often compared to Google), entered the NASDAQ market. Yandex is not the first but still an important player on the latest string of internet companies listed in the US. The price of Yandex’s shares has increased with 50% in the first day of trading., which is good news. However, the signals of the stock markets are mixed: for example RenRen, the Chinese Facebook, now trades for less than the issue price, which means that some speculative activity was at play during the initial listing.
Yandex is not quite a child company. In March 2011, the website attracted 38.3 million unique visitors. It also has a 64% market share of all the Russia searches, which is quite impressive. However, the share is declining, as Google and Yahoo are bidding aggressively to enter that market.
The Yandex technology is a bit older than its competitors and dates from 1989-1990, when Yandex technology was first developed in partnership with the language experts from the Academy of Sciences as
a search system for the government of the Soviet Union. Since then, it has aggressively expanded to become one of the largest search engines in the world, with an algorithm quite different from its US counterparts.