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Investment Banking Salary Guide

Overview of compensation in investment banking

Investment Banking Salary Guide

This investment banking salary guide covers several jobs in the investment banking sector and their corresponding ranges of salaries for 2018. There are three main areas in an investment bank: investment banking division, sales and trading, and asset management. Investment bankers are responsible for offering strategic planning advice to company executives in terms of the best times to hold an IPO, sell assets, or acquire another business.

 

Investment Banking Salary theme

 

Investment Banking Salary Guide – Jobs in the US

While actual job titles may differ from state to state, the hierarchy of careers in investment banking follows the same general levels. Candidates with degrees and who aspire to work in an investment bank often start as analysts. They can apply directly or join an internship with the bank and get a full-time job offer after getting their degree. After several years of working in the finance industry or getting an MBA, candidates can work in investment banking as associates who are in charge of coordinating the work of analysts to ensure that it meets the needs of top-level executives. Analysts with three years of experience with the bank can also be promoted to associates.

The vice president or director handles the managerial tasks, interacting with clients and making sure that the work of analysts and associates meet the expectations of the senior members. Managing director (MD) is the highest level that candidates can achieve in investment banking (without being the CEO or CFO of the group). The main responsibilities of an MD are to build client relationships and get new clients.

 

Investment Banking Salary Guide in the US for 2018

Salaries in the investment banking sector vary depending on work type, hours, and years of experience. The table below shows the range of salaries of candidates with experience and skill sets needed for the job. It also indicates the range of bonuses or incentives that come with most jobs in the investment banking sector.

 

Job TitleBase SalaryBonus
Intern/Summer Analyst$70,000$50,000 - $100,000
Analyst (Year 1)$84,000
Intern/Summer Associate$119,000
Analyst (Year 2)$92,000
Analyst (3+ Years)$95,000
Associate$144,000$80,000 - $130,000
Vice President$218,000$100,000 - $250,000
Director/MD$246,000$200,000 - $10M+

 

Related Readings

Thank you for reading CFI’s investment banking salary guide. To learn more and keep advancing your career as an investment banker, the additional resources below will be useful:

  • Comparable Company Analysis
  • Equity Research vs. Investment Banking
  • Investment Banker in Sell-Side M&A
  • M&A Considerations and Implications

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