With the aging population and increasing health consciousness, the healthcare industry has seen rapid growth and investment opportunities in recent years. As key financial intermediaries linking healthcare companies and capital, investment bankers in the healthcare sector play an important role in mergers, acquisitions, IPOs and other capital market activities. So how lucrative is the healthcare investment banking career in terms of salary compensation? This article will provide an overview of healthcare investment banking salaries in the US for different levels.
Base salaries at top-tier healthcare investment banks range from $150k to $250k for junior to mid-level bankers
At top-tier investment banks with leading healthcare groups such as Goldman Sachs, Morgan Stanley and JPMorgan, the base salary for junior investment bankers (analysts) generally ranges from $150,000 to $200,000. For mid-level bankers at associate level, base salaries are between $200,000 to $250,000.
These top banks hire mainly from target schools and top MBAs. Bonuses at these banks can be substantial, ranging from 50% to 100% of base salaries at junior levels and 100% to 300% at VP/Director levels during good years.
Base pay at mid-tier healthcare boutiques is $100k-$150k for junior bankers
For middle-market healthcare investment banks and boutiques such as SVB Leerink, Piper Sandler and Raymond James, base salaries for junior bankers tend to be slightly lower at $100,000 to $150,000 range.
These firms may not exclusively focus on healthcare and have more variation in deal types and sizes. Bonus percentages are often lower compared to bulge bracket banks, but overall compensation can still be strong with bonuses equal to or higher than base pay.
Smaller regional firms pay $70k-$120k base for entry-level bankers
At smaller regional investment banks and groups that cover healthcare, base salaries for entry-level bankers are often in the range of $70,000 to $120,000.
These firms handle smaller deals in local markets and may recruit from regional schools. Bonus payouts can vary greatly depending on firm revenue, but a 50% bonus of base pay is typical during good years.
MD-level healthcare bankers can earn over $500k in total compensation
After many years of experience, investment bankers can get promoted to the Managing Director/Partner level. At this stage, base salaries exceed $250,000 and often reach $300k-$500k.
Bonuses for MDs also hit highs of $1 million or more during seasons of high deal activity. Top MDs in healthcare at elite boutiques and bulge bracket banks can thus earn over $2 million in total compensation.
In summary, healthcare investment bankers at top firms can earn total compensation ranging from around $250k to over $500k from junior to senior levels. However, the hours are long and pressure is high, making it a rewarding but intense career path.