<p>IB is often touted as a good thing to do after undergrad or an MBA, and then either switch to PE/HF, largely because of earning potential. </p>
<p>If one could last a whole career at Goldman/Morgan Stanley/Credit Suisse/ other BB firm, let's say 25+ years, what would the compensation look like?</p>
<p>I don’t know personally, but it should be obscenely high.</p>
<p>The caveat is it runs on an “up or out” system, so even if you do manage to break in, I think it is unlikely you will “survive” 25+ years.</p>
<p>But are you sure you want the GS/MS/CS lifestyle for that long?</p>
<p>Personally, I’m not considering IB, I’ve just read many articles, and evem threads on CC, about staying in IB for maybe two or three years, and then just switching out.</p>
<p>My father’s work partner’s daughter is a vice president at Goldman Sachs and has worked there for 12 years (I believe?) and the compensation is pretty ridiculous, as expected. She owns a beautiful house in Manhattan and basically bought it by herself (her husband writes movie screenplays, and hasn’t sold one to my knowledge). So I suppose to answer your question, enough to live a life of luxury in the most expensive part of the most expensive city in America, so in other words, quite a bit.</p>
<p>Would you say one would become wealthy, $5 million+ income per year, or just well off(in New York standards), $500,000 to $1,000,000 income per year?</p>
<p>That depends on how well your bank does. But I’m pretty sure the top guys at Goldman Sachs bring in $5 million+</p>
<p>$5mm+ is much easier in PE/HF</p>
<p>Easier to gain, easier to lose, and harder to get into in the first place.</p>
<p>I do know PE/HF has more potential gain, but there iscalso more risk. But, although this is hard, if you could last long at, say Goldman or Morgan Stanley, could you pull the $5million+?</p>
<p>Apparently only the MD at any investment bank will be making anything close to $5 million/year</p>
<p>[URL="<a href="http://www.careers-in-finance.com/ibsal.htm"]source[/URL">http://www.careers-in-finance.com/ibsal.htm"]source[/URL</a>]</p>
<p>^The only way you would be able to stay in an IB role at a top bank for 25+ years is if you made MD.</p>
<p>There isn’t inherently any more “job risk” in PE/HF, as far as I know, than IB.</p>
<p>PE is really no riskier than IB, since much of what you do is very similar and you’re not betting any money until you get to a really senior level. Being an MD (and that’s the only way you’ll be making 5mm a year) is risky too since your value is based solely on your relationships with clients and how much deal flow you can generate.</p>
<p>I do agree that HFs are generally riskier than IB/PE though, especially if you’re at a firm like Citadel or SAC</p>
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<p>In HFs, an investment professional (highest compensated) who doesn’t make money for the company will be OUT in no time.</p>
<p>Entry level analysts in IB are given 2 year contracts, many are not invited back for a third year.</p>
<p>^Eh… You are not given a contract. They can fire you whenever they want. The only reason the 2-year mark is special is because you are typically promoted after 2 years (if you made it).</p>
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<p>Comments like this are precisely the reason why high schoolers should not be answering career related questions. </p>
<p>Of course you’re given a contract.
It also for 2 years, the vast majority of the time. </p>
<p>Also, no one is ever “promoted” after two years (unless you consider staying on a promotion). The promotion to associate comes after the third year.</p>
<p>If you’re a star, you’ll be promoted after 2 years. IB and PE carry the same amount of risk. If you don’t preform in PE, you’re out. Nowadays, if you don’t preform in IB, you’re out, especially since IB’s are cutting lots of jobs and are becoming for lean. Its harder to hide now in IB. Also, why would you want to be a career banker anyway? I could understand why the analyst take the 100 hour weeks but do you really want to be 30 years old, starting a family and working 80 hour weeks?</p>
<p>“If you’re a star, you’ll be promoted after two years.”</p>
<p>No. If you’re a star, you’ll be asked to come back for a third year. Typical uninformed ■■■■■.</p>
<p>Most of these uninformed posters repeat information read from wallstreetoasis dot com and most of the posts there are also written by people who have no experience in finance.There are only a handful who had have relevant experience.</p>