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).
As tha banks continue to see large profits in Q1 and Q2 2011, salaries are also on the rise to attract the most intelligent people. It also means that the demands are higher – nowadays it is more likely that the analysts will have a Hons Bachelor’s Degree and pass a series of difficult tests, focused on various topics – from critical reasoning to “maths under pressure.” So if you want a job in the sector, you should prepare well. A good set of tests is offered by the big recruitment companies – (see for example Vault’s career guide to Investment Banking for tons of free tests and useful advice).
So, here’s the list of what an investments analyst banker can be expected to be paid in 2011:
Job Level Salary Range Average Full Compensation (incl. bonus)
Entry Level Analyst $90K – 140K $120K
3rd Year Analyst $120K – 320K $150K
Entry Level Associate $150K – 250K $170K
3rd Year Associate $300 – 500K $370K
VP (Vice President Investment Analysis) $350K – 1MM $750K
In the beginning, one cannot expect a big variation of its salary. Despite the long hours, the situation is very similar to the Big4 (Audit and Financial Services) companies – the more you hang on and do a good job, the better are your future prospects.