<p>I mean, read they're 30k-50k salary with 40k-60k bonuses. That's a lot of money and here people also say you don't need to be a mathematical genius and it's really basic math calculations.</p>
<p>So why does it pay so well if you don't have to do extremely hard problems. (At an analyst level)</p>
<p>And not everyone can do this because it's competitive so what are the demands and requirements for the job that not everyone has besides being able to work 80-120 hours a week?</p>
<p>Those bonuses you're talking about, where they're 1x-1.5x the base salary, only occur if the person is senior and has some contractual guarantees or if the market is doing well. The market isn't doing well. Your top-end number is 110k (which isn't really the highest, although I guess if you're only looking at big IBs it's not far off), which is something first and second years will not make this year, and it's actually not a lot of money in the context of brilliant engineering students who go to top 10 applied science colleges. The difference is that the "financier" will work longer, while the software engineer coming in to a position a few tiers above entry level with a signing bonus will do harder work but work fewer hours.</p>
<p>If you're concerned about money the reason to go into finance, or law and even accounting for that matter, is not for the salary you get in your first or second or fifth year. It's for the salary you could have 20 years from now, or the amount you could charge to consult. People in other fields will match it, people in other fields will probably do better. There are IT positions for counties in Iowa that pay upwards of 90k with 3 years of work experience, government jobs have all federal holidays off, 8 hour work days, full benefits, multiple weeks of sick and vacation time a year, and if you're not working for a county or state that's hemorrhaging money once you're 5 or so years into it you'll basically be in a position where it will be impossible for you to ever be fired. The potential "cap" on what you can make in most of the business world is much higher, while that IT guy might still be making more 6 years into it than the law associate. The decision most people have to make is whether they want to work hard for a few years to make a significant amount of money (<$250,000/yr), or whether they want to work hard for decades with a much higher potential but not guaranteed pay-off.
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because to get to the BB's you have to be cream of the crop x100</p>
<p>and the ones who don't get to the BB's won't get that huge bonus
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Or you could be lucky, which is better than being good.</p>
<p>Analysts need incentives in order to work the hours they do. Given this, they are paid relatively large sums of money (to other entry positions).</p>
<p>Investment banks are able to do this because (looking now at just the financial advisory and capital raising side) of the fees they charge. It is a high margin business, there are not that many capital intensive expenses. You just need people.</p>
<p>That is a very basic overview. I don't have time to elaborate much.</p>
<p>
[QUOTE]
I mean, read they're 30k-50k salary with 40k-60k bonuses. That's a lot of money and here people also say you don't need to be a mathematical genius and it's really basic math calculations.</p>
<p>So why does it pay so well if you don't have to do extremely hard problems. (At an analyst level)</p>
<p>And not everyone can do this because it's competitive so what are the demands and requirements for the job that not everyone has besides being able to work 80-120 hours a week?</p>
<p>What makes this job pay so well?
[/QUOTE]
</p>
<p>By "analyst", I'm assuming you're referring to M+A advisory/corp finance, correct me if I'm wrong.</p>
<p>If it was as easy as you make it sound, everyone and their mother would be doing it and there would be no incentive for firms to pay that much. It's not just math, you'll come to learn that much of finance is theory and gut instinct based.</p>
<p>While it's true that the math itself may not be difficult at its core...you have to be able to figure out what all the numbers mean. You have to be able to think outside of the box and connect the dots. These problem solving and critical thinking abilities which are prevalent in this type of employee is what sets them apart. It is also these same skills that enables them to demand such a high level of compensation.</p>
<p>Simply looking at industrial/sector analysis, income statements, balance sheets, cash flows, etc... is not enough. You have to understand how all of the pieces fit together in order to make a sound judgment. This is precisely why it is very difficult to get into the field and become successful at it; not many people can put the puzzle pieces together.</p>
<p>Thanks I think I understand it better now :) And it makes more sense, lol.</p>
<p>GoGetta09, I don't really know specifics but analysist I was referring to the first couple of years at investment firms before Associates and prior to getting an MBA.</p>
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GoGetta09, I don't really know specifics but analysist I was referring to the first couple of years at investment firms before Associates and prior to getting an MBA.
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</p>
<p>Well, just to give you an idea for future reference, there are plenty of different types of "analysts" within investment banks. </p>
<p>Financial analysts for the firms wealth management division, equity/debt/derivatives analysts/researchers (this can usually lead to becoming a portfolio manager, also very coveted), mergers+acquisitions advisory/corp finance analysts, operations analysts, systems/technology analysts, treasury analysts, currency analysts/strategists, specific sector/industry analysts...</p>
<p>um... I know I'm still missing quite a few but I bet you get the point.</p>
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Analysts need incentives in order to work the hours they do. Given this, they are paid relatively large sums of money (to other entry positions).
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</p>
<p>x2.... was one of my interview questions for pwc's IT audit internship(not an ibank, but similar atmosphere)... asked me whether I work for the money to pay for school or just work to have more money..... these companies like hungry people who are in debt and need to work off large loans and willing to go the extra mile for that bonus.</p>
<p>i think its important to note that 150k in NYC is not all that good. 150k in NYC is about the same as 80k in chicago... so.. they better be paying you that much for your soul.</p>
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[quote]
i think its important to note that 150k in NYC is not all that good. 150k in NYC is about the same as 80k in chicago... so.. they better be paying you that much for your soul.</p>
<p>Cost of Living - Cost of Living Calculator from CNNMoney
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</p>
<p>Then that means 100k in manhattan is like living in poverty</p>