Investment Banking Pay By Title: From Analyst To Managing Director

Let's look at investment banking pay by title. I used to work at Goldman Sachs and Credit Suisse for 13 years.

Investment banking is one of the all-time great lucrative professions. Every year, students from the top schools all vie for the precious few Analyst or Associate spots at firms like Goldman Sachs, Morgan Stanley, and JP Morgan.

If they are able to get in and last, they are sure to become multi-millionaires in their lifetime with some solid financial habits.

Achieving the title of Managing Director has always meant that you'd finally break seven figures a year, at least when I worked in the industry between 1999 – 2012. I started my career at Goldman Sachs and moved to Credit Suisse in the Equities department.

The typical Managing Director base is around $500,000, and they would often earn a bonus of $500,000 or more. But the bonus is often paid in deferred stock and cash.

For example, out of the $500,000 bonus, only $200,000 might be paid in upfront cash. The remaining $300,000 is deferred over four years. If you quit before the four years is up, you lose your deferred compensation, which is why negotiating a severance is huge in any industry with deferred compensation.

Investment Banking Pay Chart By Title

Investment banking compensation

After the financial crisis in 2008-2010, investment banking salaries increased by 60% – 80% because there was a tremendous amount of backlash against Wall Street bonuses. By paying higher salaries, employees received stronger monthly cash flow, but smaller bonuses as a result to appease Main Street.

Investment banking is still a very worthwhile profession to pursue, despite the allure of tech companies in Silicon Valley. If you want to make some good money, work in investment banking for 10 years and you'll be able to do anything you want without having to prioritize money.

For 2021 and beyond, first0year analyst salaries start at around $100,000 – $110,000. Base pay went up by 30% during the pandemic as business boomed. There was also a viral report that went out that showed how Goldman Sachs analysts suffered so much that pressured management to boost pay.

Bonuses ranging between $20,000 – $50,000. Not bad for a 22 year old right out of college!

Investment banking pay by title will keep on going up thanks to a recovering economy and inflation. The pull of the technology sector is really keeping pay high in investment banking as well.

Related: The Pros And Cons Of Working On Wall Street

Recommendation To Build Wealth

Manage Your Money In One Place: Sign up for Personal Capital, the web’s #1 free wealth management tool to get a better handle on your finances. In addition to better money oversight, run your investments through their award-winning Investment Checkup tool to see exactly how much you are paying in fees. I was paying $1,700 a year in fees I had no idea I was paying.

After you link all your accounts, use their Retirement Planning calculator that pulls your real data to give you as pure an estimation of your financial future as possible using Monte Carlo simulation algorithms.

I’ve been using Personal Capital since 2012 and have seen my net worth skyrocket during this time thanks to better money management.

About the Author:

Sam began investing his own money ever since he opened an online brokerage account in 1995. Sam loved investing so much that he decided to make a career out of investing by spending the next 13 years after college working at two of the leading financial service firms in the world. During this time, Sam received his MBA from UC Berkeley with a focus on finance and real estate. was started in 2009 and is one of the most trusted personal finance sites today with over 1.5 million organic pageviews a month. Financial Samurai has been featured in top publications such as the LA Times, The Chicago Tribune, Bloomberg and The Wall Street Journal. 

For more nuanced personal finance content, join 100,000+ others and sign up for the free Financial Samurai newsletter. Financial Samurai is one of the largest independently-owned personal finance sites that started in 2009. Everything is written based off firsthand experience.