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
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.
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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.
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