<p>So how much can you be expecting to make in a top investment bank after working for say 7 years or so (moving up in ranks)?</p>
<p>To work in banking for 7 years, you must first do an Analyst stint (2-3 years). After that, if you’re VERY good, you can be promoted to Associate. But if you’re not, you must first go to business to try become an Associate through recruiting at your B-school. Many Analysts also first do a couple years of something else (i.e. Private Equity) before going to business school after their Analyst stint. Assuming you’ve done an Analyst stint and have moved on to Associate, you should be in the latter position for 3-4 years before being promoted to Vice President. (Note: Once again, you must be a GOOD Associate to be promoted to VP.) That’s roughly 7 years. However, many bankers were never Analysts – they do something different before B-school, start their banking careers as an Associate from MBA, and then get promoted to VP. Regardless of whether you’ve done the 2-3 year Analyst stint, you will make about the same salary as a first year VP. These salaries are variable, but I would say VPs bring in around 500k in all-around compensation.</p>
<p>500,000k after working about 7 years at a company doesn’t seem that much to me compared to if you were to start your own business('s) in that time. If you stuck around for longer say for more years after that how much would you be making?</p>
<p>If you make partner, you can bring in millions/year.</p>
<p>What do you mean make a partner?</p>
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<p>Ok, now multiply whatever salary you think you will be making after 7 years of owning you’re own business by the probability of building up that business to the point that it is very successful after 7 years – that’s your expected salary, and it’s quite low.</p>
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<p>Directors, principals, managing directors, partners – they can all be making in the millions.</p>
<p>There are a lot of inconsistent terms being thrown around on this thread. Goldman is the only major bank that has a rank of partner, which is basically a tier above a regular MD.</p>
<p>The standard progression is:
Analyst – 2-3 years
Associate – 3-4 years
Vice President – 3-5 years
Managing Director</p>
<p>Moving from analyst to associate generally requires an MBA, although good third-year analysts (and some exceptional 2nd years) are promoted directly. Some banks have a Senior VP or Executive Director rank, which is between VP and MD. Goldman has two classes of MD’s - Executive Managing Directors and Partner Managing Directors.</p>
<p>Salaries vary widely from year to year, bank to bank, and group to group, of course, but in general, analysts make ~100-150k all in, associates ~200-350k, VP’s ~400-800k, and MD’s $1MM+. Most run of the mill MD’s, i.e. non group heads will earn between $1.5-3MM, although that again is highly variable.</p>
<p>One important thing to keep in mind is that an increasing majority of a banker’s compensation will come from a bonus that nowadays is mostly deferred stock. Most MD’s only earn $200k or so in base salary, with the other million(s) in deferred stock that may take years to fully vest.</p>
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<p>aka the “golden handcuffs.”</p>
<p>Honestly the only career path that pays better than finance is entrepreneurship</p>
<p>Unless you analyze it based on pay per hour</p>
<p>Also pay varies by firm size; getting into a BB isn’t easy. Forever’s #s could be drastically cut if we’re talking about boutiques and MMs</p>
<p>They could also be dramatically higher depending on the firm.</p>
<p>Maybe but which (I)banks paid more than Goldman last year?</p>
<p>Lazard is the first that comes to mind.</p>
<p>How much was comp + bonus at Lazard?</p>
<p>Elite boutiques like Lazard pay more at the analyst level than the larger banks do, but I don’t think there’s a pay gap at higher levels. I’m pretty sure that MD’s at BB’s make more on average than MD’s at boutiques. And it’s well known that the most handsomely paid group of bankers are Goldman’s partner MD’s.</p>
<p>7 years (if you survive) would likely put you at VP-ish level, in which case I’d imagine its likely in the 500-800k range.</p>
<p>Do the hours get any better after being promoted from analyst? </p>
<p>I’m assuming yes/kinda. Go from 80 hour work weeks being the norm to 70 lol.</p>
<p>Yes, they do. My pops is an MD and he works about 50 hours a week, maybe more. But his job involves a TONNNN of travel for what it’s worth.</p>
<p>Building a successful business from scratch and making half a mil a year in profits is ridiculously hard. There is so much work and headache that goes into running your own business you are better off working 80 hours at a firm and getting a steady salary + bonus if you aren’t 100% dedicated and ready for it. Also most people do not have the starting capital to start their own business. If you think you will only need 10k to start your business (simple e-commerce), it will end up costing you twice that much. Legal fees, advertising, website, investments, inventory, billing programs, accounting programs, hosting programs ect ect it all cost money. Then there is the “What if it fails”? What if you need additional capital to keep your business afloat, where will you get the money? Also there is the opportunity cost of not working elsewhere until you business takes form. Too many uncertainties.</p>
<p>After 7 years doing IBD, your base will be around 150k with the remainder 3-400k in bonus/options on an average year.</p>
<p>450-700k depending on how ur firm is going and how good things are on the street.
You’ll most likely be a 1sy year vp and should really expect 500-600k unless you’re at goldman sachs…at goldman you’ll probably get 450k because of the goldman discount.</p>