Investment banking is a lucrative yet demanding career path. The National Investment Banking Association (NIBA) offers insights into salary ranges and compensation at investment banks. This article will analyze NIBA salary data to understand pay scales in investment banking and how salaries progress over an IB career. We’ll examine trends including base pay, bonuses, and total compensation across major banks and different roles like analysts, associates, VPs. By reviewing NIBA salary surveys, we can benchmark pay in investment banking vs. other industries and gain perspective on paths to higher earnings in IB.
NIBA salary data reflects high pay in investment banking
The National Investment Banking Association conducts periodic surveys of salaries and compensation at major investment banks. The data provides valuable benchmarks for pay scales across different banks, experience levels, and roles. Key findings include: – Investment bankers earn far above average pay relative to other industries. Associate base salaries often exceed $150k. Total comp with bonus can reach $500k+ for Vice Presidents. – Salaries in investment banking rise steeply in the early career stages. First year analyst salaries averaged $85k base pay in 2019, rising to $155k for third year analysts. – Bonuses often exceed base salaries, especially for more experienced bankers. VP bonuses averaged $290k, far above their $150k base pay.
Pay progression from analyst to associate and VP in investment banking
NIBA data reveals typical salary growth over an investment banking career. Analyst salaries start around $85k for first years and rise to $170k by third year. Associates enter around $150k base pay, growing to $190k+ by fourth year. Vice presidents earn $150k+ in base salary but can earn over $400k in total compensation. This reflects the long hours and high stress typical of junior investment banking roles. As bankers gain expertise and client relationships, they progress into more senior roles with higher pay.
Investment banking compensation vs. other industries and careers
Though demanding, investment banking offers high compensation relative to many other fields. The average US wage in 2019 was under $55k. Software engineers averaged $110k, with senior engineers earning up to $185k. At top technology firms, engineering salaries can reach $400-500k for very senior roles. However, investment banking Associates already earn over $150k after only 2-3 years. Experienced VPs make $400-600k+, competitive with senior tech careers. However, banking careers progress more quickly and offer higher pay in the early-to-mid career stages.
How to maximize salary and earnings in an investment banking career
While investment banking offers high compensation, salaries can vary significantly. Here are tips to maximize earnings over an IB career: – Get into a top bank. Bulge bracket and elite boutique banks pay the highest salaries. – Specialize in high paying coverage or product groups. M&A, leveraged finance, and equity derivatives often pay the best. – Move up the ranks quickly. Become a VP before 30 to maximize lifetime earnings. – Switch banks and locations strategically. Changing firms and cities can lead to pay increases.
NIBA salary surveys confirm the high earning potential in investment banking. While demanding, the field offers rapid salary growth and huge compensation for top performers. Strategic career management is key to maximizing salary over an IB career.