Investment banking is known for paying high salaries to employees, especially to analysts and associates fresh out of college. However, the work hours are notoriously long, often requiring 100+ hours per week. This article will analyze the trade-offs of high pay versus quality of life in investment banking jobs.
Base salaries range from $100k to $150k for junior roles
Investment banking analysts straight out of undergraduate programs can expect base salaries between $100,000 to $150,000. Bonuses can effectively double total compensation. However, these roles require extensive financial modeling and pitchbook building often late into the night and on weekends.
Vice president total comp reaches ~$500k
After 3-4 years of analyst experience, bankers usually get promoted to associates with base salaries around $150k-200k. After 5-6 years, they may reach vice president level with total compensation approaching $500,000 factoring in bonuses. However, the lifestyle is still quite challenging.
Directors and managing directors earn seven figures
As investment bankers climb the ranks to director and eventually managing director levels, their total compensation can easily clear seven figures. However, the path is long and arduous – often taking over a decade starting from undergraduate. Maintaining work-life balance is difficult at the highest levels.
In conclusion, investment banking offers very lucrative pay packages especially for junior roles. However, bankers trade away much of their personal lives with 100+ hour work weeks being commonplace. Each person needs to evaluate this career tradeoff closely when considering investment banking.