<p>It seems that a lot of students are interested in IB and are asking questions all over the place, but we do not have a solid post of advice that explains IB, and outlines how to enter the profession.</p>
<p>Anyone willing to discuss this in a cohesive post that addresses some of the most common questions?</p>
<p>What is IB?
How to get into IB?
Salary, Competition, Target Schools...?</p>
<p>Thanks</p>
<p>[Investment</a> banking - Wikipedia, the free encyclopedia](<a href=“http://en.wikipedia.org/wiki/Investment_bank]Investment”>Investment banking - Wikipedia)</p>
<p>To get in, you need to be at a top University (target School). These schools are the ivies, MIT, Stanford, Cal Tech, and a few other undergrad B-Schools (i.e. UMich Ross). Duke is up there too. That list is probably not complete, but it’s close to it.</p>
<p>If you’re not at a target, it’s much harder to break in. You would have better luck at a boutique. Competition is ridiculous, because of the high salaries. Before the meltdown, analyst made well over 100k easily.</p>
<p>Salaries in Investment Banking (with bonus)</p>
<p>Job Level | Salary Range | Typical All-in Comp |(degree/yrs experience)</p>
<p>First Year Analyst | $60K - 150K | $90K | Bachelor’s
Third Year Analyst | $120K - 300K| $150K| Bachelor’s
First Year Associate| $150K - 250K| $170K | MBA
Third Year Associate| $250 - 450K | $300K | MBA
Vice President | $350K - 1MM | $500K | 3-6 years (after MBA I think)
Director / Principal | $400K - 1.5MM | $700K | 5-10 years
Managing Director / Partner| $500K - 20MM | $800K | 7-10 years
Department head | $800K - 70MM | $2MM| 10+ years</p>
<p>Note: This table is based upon conversations with banking insiders in 2009. MM denotes millions. K denotes thousands of US dollars.</p>
<p>That sounds pretty accurate. And the “I think” is correct</p>
<p>
One thing this table is missing is probabilities of making it to each tier. For example, x of out 100 make it to 2nd year analyst. y of that x 2nd year analysts make it to third year analyst, etc.
If you just present “potential earnings” without the probability of success, all it is is the lottery billboards showing that you MAY win that much without letting you know that the probability of winning that much is in fact very very tiny.</p>
<p>Is anyone able to find the failure rate of reaching each succeeding tier/rank?</p>
<p>very good break down thank you for posting! </p>
<p>quick question is it a given if you come from a smaller non-flag schools like (missouri/ Ku etc etc) you have very little chance so dont bother?</p>
<p>is there job descriptions for associates etc?</p>
<p>
</p>
<p>So after letting this thread hang for a couple of days and twice requesting to see the probabilities/odds of someone promoting at each grade/step, no one has an answer?</p>
<p>Ladies and gentlemen, if you do not know the odds of being promoted to each successive rank, a table like this is no different from playing the lottery with no clue what your chance to win might be.</p>
<p>There is less than a 1 percent change you will be HIRED as a first year analyst, if you apply for a position (at a BB).</p>
<p>Banking culture and pay has a high chance of changing over the next few years, so this table is obviously not set in stone.</p>
<p>Luker is right guys, those numbers AstonMartin present will most likely be decrease by an couple of of thousands & millions for the next few years. Banking may not return to its normalcy until probably between 2012-2015.</p>
<p>
Those percentages are arguable, but we know what it takes to get into ibanking. That’s not a surprise. What we’re truly looking for is stats such as “1 in x first year associates make it to VP”, “1 in y VPs make it to director”, “1 in z directors make it to MD”, and so on…</p>
<p>Can no one provide a guideline for that? Does anyone in here ACTUALLY have experience in this field or not? I remember hearing hmom5 claim she is a veteran in this industry. Perhaps she could shed some light on those statistics just to give people who are interested in ibanking an idea of how they may make out.</p>
<p>Bonus will go up this year, possibly back to 2007 level, based on the accrual we are seeing. Many firms have met their 2009 target already, not to say they couldn’t lose it all by Sep/Oct. Firms that are not allowed to pay similar bonus are forced to raise their bankers’ base for fear of losing their best/brightest to other firms.</p>
<p>
</p>
<p>I was under the impression that ibanks will promote you after a certain number of years (in other words, you won’t see an analyst who has been there for 10 years), or fire you if you’re incompetent.</p>
<p>care to comment hmom5?</p>
<p>Can someone please explain the sections of IB. By that I mean IBD, S&T and all the others. Which are the most difficult to get into, which pay you the most…all that stuff.</p>
<p>Can someone? Please.</p>
<p>You can make good money if you work in the front office (IBD, S&T, etc). It really depends on what you like to do. IBD is more of a marathon where S&T is a sprint (when looking at the environments). However, at the end of the day it’s all about sales. MDs from the IBD take pitch books and try and sell their bank, obviously the sales guys are selling, and the traders try to get the biggest margin which involves selling as well. So bottom line is choose a career based on the environment you’re going to feel most comfortable working in. I should also add the the hours may be a bit longer in IBD as an analyst and associate compared to the junior levels in S&T because in S&T the market dictates your hours where in IBD your associate/vp dictates your hours.</p>
<p>
We are waiting.</p>
<p>Polo…
Just stop trying to make yourself seem better than hmom. Her advice is so much more accurate than yours. Over half your posts disparage her and try to delude everyone into becoming a pharmacist so just stop so hmom can help other people.</p>
<p>And quit with the sarcasm…</p>
<p>Is a question about probability of promotion within ibanking NOT a valid question Millhouse?
We do, in fact, need an official thread for this.</p>
<p>You don’t have to re-post something in quotes. It’s not like it disappeared from earlier in the thread. If she sees the thread and wants to respond, she will. She doesn’t need it posted twice. The question is valid, but your double posting it is unnecessary.</p>