Quant investment banking is a highly lucrative career path. With strong math and programming skills, quants develop models and algorithms to analyze data and inform trading and investment decisions at banks. Quant salaries at top investment banks start high for new grads and rise steeply with experience. Total compensation can reach into the millions at elite firms. This article will provide an overview of quant investment banking salaries at top banks like Goldman Sachs and Morgan Stanley as well as factors driving quant pay.
Base salaries range from $100k to $250k for new grad quants
According to online salary databases, the base salary for a new graduate quant at a top investment bank typically ranges from around $100,000 to $250,000. For example, Glassdoor shows a range of $100k-$150k for Goldman Sachs and $150k-$250k for Citadel Securities. The higher end is for top students from elite programs like MIT or Princeton. More experienced quants can earn base salaries up to $500k or more at the director and managing director levels.
Signing bonuses add $50k or more upfront
Besides base salary, top investment banks also offer signing bonuses to attract top quant talent, especially PhDs coming from academia. These can range from $50,000 to over $150,000 for the most in-demand candidates. Signing bonuses help secure talent in a competitive quant recruiting environment.
Annual bonuses can double total pay
The annual performance bonus is where total quant compensation really takes off. Bonuses at top investment banks are a substantial percentage of base pay, routinely hitting 100% to 200% at the associate level and higher in good years. So a quant making a $250k base can expect $500k or more in bonus, resulting in total compensation exceeding $750k.
Quants at elite hedge funds can earn millions
The highest paying quant jobs are at elite hedge funds like Citadel, Two Sigma, and D.E. Shaw. Here, quants take home multimillion dollar pay packages in salaries and bonus. For example, a quant portfolio manager at Citadel can earn over $10 million annually, with top performers earning far more.
In summary, quant investment banking salaries start high with six figure base pay for new grads but signing bonuses, annual performance bonuses, and long term upside at elite firms push total compensation into the millions over a career.