Investment banking is known for having high salaries, especially in major financial hubs like California. Salaries start high for junior positions like analyst and associate roles, with total compensation reaching six figures. More senior positions like vice president, director and managing director command even higher pay, with managing directors earning over $500K per year on average. Bonuses also form a major part of compensation, ranging from 30-50% of base salaries.
Base salaries rise steadily with seniority
Base salaries for California investment bankers see steady growth as they advance in their careers. Junior analysts start around $80-90K, associates make $115-120K, vice presidents get over $250K and directors get similar base pay. The managing director role sits at the top of the hierarchy with average base salaries of $300-400K for those with over 10 years experience.
Bonuses average 30-50% of base pay
In addition to generous base salaries, California investment bankers receive substantial bonus payouts each year. Bonuses average 30-50% of base pay, with the higher end applying more to front office roles that directly generate revenue. So an associate may get a $180K base salary plus a $90K bonus. Bonuses fluctuate more year-to-year though, based on bank and individual performance.
Higher potential earnings in San Francisco
Within California, San Francisco offers the highest salary potential to investment bankers. SF-based bankers reported needing a net worth of $1.7M to feel ‘financially comfortable’ compared to $1.4M in New York and $1.3M in Southern California. The high cost of living drives up incomes. But higher salaries also reflect the concentration of tech companies and startups needing investment banking services.
Manageable work hours in California
While investment bankers are known for long, stressful hours, the situation has improved slightly in California over the years. Bankers report working 10-20 fewer hours per week compared to New York. So while hours are still long compared to other industries, California provides a better work-life balance versus other banking hubs.
In summary, California investment bankers earn very high salaries with base pay starting around $80-90K for junior roles but reaching $400K+ for managing directors. Bonuses usually range from 30-50% of base salaries. And within California, San Francisco offers the greatest earnings potential thanks to soaring cost of living and high demand from tech companies.