With the rapid development of China’s economy, the investment banking industry has developed rapidly in recent years. More and more college students have chosen to embark on an investment banking career after graduation. However, many students actually know little about the junior investment analyst entry level salary in investment banks. Through the introduction of investment banks’ organizational structure and salary levels, this article aims to give an overview of the salary levels of junior analysts in investment banks.
Investment banks’ organizational structure and junior analysts’ positions
Investment banks usually consist of three main departments: investment banking division (IBD), sales & trading (S&T), and equity research. The main job of junior analysts is to assist senior analysts or associates in financial modeling, preparing pitchbooks, conducting research, preparing reports, etc. Common junior analyst positions include:
– Investment Banking Analyst: Works in IBD team, focuses on execution of deals like IPOs, bonds issuance, M&A.
– Sales & Trading Analyst: Works in S&T team, focuses on facilitating trading and providing services to institutional investor clients.
– Equity Research Analyst: Works in equity research team, focuses on analyzing companies and industries to make buy/sell recommendations.
Salary levels of junior investment analysts in different banks
The junior investment analyst entry level salary varies across different banks. Here is a breakdown:
– Bulge Bracket Banks (JPMorgan, Goldman Sachs): $70k – $90k base, with ~100% bonus. Total around $140k – $180k.
– Elite Boutique Banks (Evercore, Lazard): $60k – $80k base, with ~50% bonus. Total around $90k – $120k.
– Mid-Market Banks (Raymond James, William Blair): $40k – $60k base, with up to 30% bonus. Total around $60k – $80k.
The base salary increases about 10% – 20% yearly. Bonuses depend on personal and firm performance. Majority of analysts leave after 2-3 years to attend business school.
Factors affecting junior investment analyst salary
There are several key factors that determine the junior investment analyst entry level salary:
– Bank reputation and size: Bulge bracket banks pay much higher than mid-market or boutique banks.
– Location: New York and San Francisco pay 20% – 30% more than other places like Chicago or Houston.
– Department: IBD roles tend to pay slightly higher than S&T or equity research roles.
– Education background: Graduates from top universities earn 10% – 20% more. Majors like finance, accounting, economics are favored.
– Internship experience: Candidates with relevant investment banking internships command higher salary offers.
– Technical skills: Strong financial modeling, Excel, PowerPoint skills give negotiating leverage.
In summary, junior investment analyst entry level salary ranges from $60k to $180k, with bulge bracket banks in New York paying the most. Salary depends on bank, location, role, education, experience.