On an absolute basis, investment bankers are some of the highest-paid professionals for their age. As a new hire, you can expect to earn over $100,000 straight out of school, which will probably blow most of your classmates out of the water. But the investment banker salary on an hourly basis is another story.
On a per hour basis, investment bankers are not paid nearly as well. With most analysts and associates working over 100 hours per week, their hourly wages can range anywhere between $25-$35 per hour. That’s not bad, but it doesn’t sound as good as $100,000 a year did.
The bonus is a large part of a banker’s total income across all positions, but especially at the more senior levels, where a bonus can be several times the base investment banker salary.
Why are bankers paid so much?
The advocate would say they’re paid so much because the banks work on very important transactions that generate big fees. In exchange for such important work, they need to be smart, hard-working, and highly skilled – and thus, well-compensated.
The cynic would say they’re paid a lot because the work is super stressful, with a military-like hierarchy, and the hours are unbearable. In fact, the hours are so long that they don’t actually make that much per hour.
One of the most important skills for a highly paid investment banker is financial modeling. Analysts and Associates spend a lot of time in Excel, building various types of models to support transactions, pitches, and other activities