Investment banking is known for having some of the highest paying jobs on Wall Street. The base salaries at top firms like Goldman Sachs and Morgan Stanley can exceed $100,000 for junior bankers. But with bonuses that often reach 100-200% of base salaries, total compensation packages frequently top $300,000-$400,000. The most lucrative positions are in front office roles like M&A, equity capital markets, and fixed income trading where bonuses make up a huge portion of total comp. So which investment banking jobs actually pay the best?
M&A bankers earn big bonuses for completing deals
Investment bankers in M&A advise companies on merger and acquisition transactions. They work long hours conducting financial analysis, building valuation models, preparing pitch books, and negotiating deals. For each completed transaction, bankers earn a percentage of the fees as their bonus. Bigger deals equal bigger bonuses. M&A bonuses commonly reach $500,000+ for senior bankers.
ECM bankers reap rewards for IPOs and offerings
Equity Capital Markets bankers help companies raise money by selling stock. Common offerings include IPOs, follow-ons, rights issues, converts, and block trades. Like M&A, ECM bankers earn a cut of the fees for every deal. Lucrative IPOs can result in millions in bonuses for the bankers.
sales & trading bonuses depend on trading profits
The sales and trading divisions at investment banks facilitate buying and selling of securities for institutional investor clients. Traders aim to make profitable trades by buying low and selling high. Their bonus is directly tied to the trading profits or losses they generate.
FIG bankers work with financial services firms
The Financial Institutions Group at investment banks focuses on financial services clients like banks, insurance companies, asset managers, and specialty finance firms. FIG bankers work on M&A deals and capital raising within this sector. The deals tend to be large so FIG bonuses can exceed $1 million for managing directors.
In summary, front office investment banking jobs offer the highest pay on Wall Street due to enormous bonuses tied to fees or trading profits. M&A, ECM, Sales & Trading, and FIG bankers have the top earning potential with total compensation routinely over $500k for mid-level and over $1 million for senior bankers.