Ibanking vs. Consulting

Graduate School Business School - MBA
1

<p>This is a really newbie question, but could you please compare ibanking with consulting.
Whats difference in what you actually do in the job?
I heard that ibanking is best to start of in for about two years since you gain a lot of versatile experience and can move on in many other directions. Is Consulting as versatile and a good starting point?
How is it with the crazy 100hour weeks in the two? Is one less crazy?
I heard that basically anyone can start workin in Ibanking since its not much about skill you know, but you learn what u need at the job. Do you need more skill for Consulting?
Is there any other really good starting point for a business career that is perphaps not as crazy with the working hours?</p>

<p>Thanks a lot for you experienced guys that answer such annoying questions:)</p>

2

<p>Consultancy has considerably less hours and considerably less $£$</p>

3

<p>I think the only reason investment banking analysts/associates make a lot of money is because of the hours they work. They probably average around 15 dollars an hour. Times that by 90 hours a week, it adds up.</p>

4

<p>Oh don't be silly. IBers turn over millions per year, consultants progress companies to attempt to do so.</p>

5

<p>^ Yeah VP's and up do, not the average analysts/associates. From what I hear, it's near impossible to move up, so don't think you are going to make millions and millions of dollars unless you are the top dog.</p>

6

<p>Well, it's not THAT bad. It is indeed hard to move up. But just because you don't move up doesn't mean that your career is moribund. Plenty of people work in Ibanking for a few years just to be able to get the experience and the contacts and then move on to nice managerial positions in corporate finance departments, where you won't make the kind of money you would as an investment banker, but you will still make very good money with far lower working hours. In other words, for most people, investment banking is just a career booster. </p>

<p>It's like military bootcamp. Lots of people may like being in the military, but very few people actually enjoy bootcamp. Bootcamp is just something you have to put up with in order to get to do the things you do like to do.</p>

7

<p>In my analyst class of 70 (probably a typical experience), 19 stayed on for a third year and nine were promoted to associate. Analysts and Associates probably do average 80-90 hours per week. You're not making seven figures until the SVP level, but analysts probably range from $75K-$150K and associates from $150K-$500K depending on years of experience and performance. Out of undergrad, it is probably easier to get into IB (there are many more positions) than consulting. Hours in consulting are much closer to 55-70 per week (depending on the firm and experience), although potentially significant additional travel can take its toll. Compensation in consulting starts off nearly comparable, but doesn't come close to ramping up as quickly. Out of undergrad, to go into consulting, you really need to have gone to one of ~ 15 schools to have a shot (w/o being extremely lucky), while banking recruiting spreads a wider net and going to one of ~ 40 schools gives you a legitamite shot. After getting an MBA, both professions recruit relatively equally from the top 10-15 schools.</p>

8

<p>Hmm...assuming you're not the "top dog" as someone put it, which (consulting/ibanking) would be the quicker path to the golden "seven figure salary"? Which is the more exciting field (I know this is subjective, but your opinions appreciated)?</p>

9

<p>It's strange to me to want to pick a career based on that as it seems to ignore following any kind of true passion. Given that, seven figure salaries would be much more common in investment banking or investment management/trading than they would be in consulting.</p>

10

<p>Ah, thanks. I actually do like consulting, but I'm trying to compare it to other things too.</p>

11

<p>Investment banking...
<a href="http://www.careers-in-finance.com/ibsal.htm%5B/url%5D"&gt;http://www.careers-in-finance.com/ibsal.htm&lt;/a&gt;&lt;/p>

<p>Consulting...
<a href="http://www.careers-in-business.com/consulting/mcsal.htm%5B/url%5D"&gt;http://www.careers-in-business.com/consulting/mcsal.htm&lt;/a&gt;&lt;/p>

12

<p>
[quote]
Yeah VP's and up do, not the average analysts/associates.

[/quote]
</p>

<p>The very top tier 4th Year Associates (Bulge Bracket) typically earn more (including bonuses) than the lowest paid VPs.</p>

<p>Remember, by this point if you are in the top rung, they want to entice you to stay and dangle both the VP title and a fat bonus in front of you - it's how they suck you in.</p>

<p>That's what happened to me anyway.</p>

13

<p>Question: Who ends up traveling the most? I don't really want to have to be traveling a lot with a family and all, I just want to know how I can be at home as much as possible.</p>

14

<p>^ Why consulting of course; they travel a lot.</p>

<p>Ivy_Grad: How much did you make a year?! Are you still in investment banking?</p>

15

<p>Transvaal,</p>

<p>I'm no longer in i-banking, though I did achieve my goal of making "officer" before I left.</p>

<p>As for how much I made? Enough for me to leave.</p>

<p>By the end, I totally hated it.</p>

16

<p>gellino: Would you please list those ~15 schools which may have a shot on a major consulting firms? Thanks.</p>

<p>I tried to count them myself, but I got about 17-18 schools. I know I could be wrong.</p>

17

<p>Ivy_Grad: By "officer" do you mean VP or higher? Also, how were your exit options and where did you end up? Thanks.</p>

18

<p>cat,</p>

<p>yes, officer is generally VP or higher at most major i-banks.</p>

<p>exit options at that point are extremely flexible - depending on what you want to do.</p>

<p>i left initially for private equity.</p>

19

<p>ivy_grad, on average, how long would it take a person to work from an analyst or an associate to, say, a VP? Also, is the ibanking industry disproportionately male?</p>