What is so special about IB?

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I think it's media. Students read stories in the newspaper about wealthy investment bankers and see the industry through rose tinted spectacles. Applications to IBs rose 20% last year alone.

Truth of the matter is, their pay is minimum wage on average (at the start). Most can't hack it and quit before they make it to the top that an above poster brags about. If you include the cost that accountancy firms spend on your training/qualifications, your salary at an accountancy firm would be approx £40k a year. And there is great scope for earning big bucks if that floats your boat - partners at Big 4 earn around £750k a year.

Why I'm applying for Investment Banking (well, asset management at an Investment Bank) if because:
1. I enjoy the work
2. I want to be the best - I didn't work my n*ts off my whole youth to get a mediocre job
3. Once you work at the best firms, the prestige is incredible. Look at all the politiceans and central bankers who use to be investment bankers. It doesn't have to be a long term thing
4. Don't really want a 9-5 with little scope to push and accelerate yourself

You don't make anywhere close to minimum wage starting out in IBD

Bulge bracket base salary for IBD 50k
Signing bonus 10k
First year bonus approximately 15k
Total comp 75k
Average hours a week 80ish
hours a year 4160 assuming no holidays
75000/4160 18.02

even without a signing bonus or first year bonus you would need to work 149 hours a week to make minimum wage

Reply 41

Ib7637ib

Original post by IsraelforLife

Most guys who work in IB are functionally autistic, they're the sort of guys who would declare their salary on the first date and claim that it makes them 'objectively good partners'.

I'm pretty sure you haven't met many bankers then. You can't even get an advisory job without being socially functional.

And reading the rest of your 'answers' only reinforces my opinion that the only thing you know about the industry is what you've read in sensationalist books.

OP, most bankers love their job. You get exposure to all kinds of interesting stuff and get to work on sick deals. And if you don't like it you can easily move to corporate. We get paid way more than most people, even on a hourly basis. Your ideas of what industries pay what is seriously skewed.

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(edited 8 years ago)

Reply 42

Alex-Torres

Original post by fuuji

I know for sure that IBD base salary isn't as high as 50k. According to graduate high fliers, the highest paid employers are Lidl and European Commission at 45k.
On the minimum wage thing, that is excluding bonuses. Total pay divided by hours worked equals about minimum wage, according to Anton Kreil.

Reply 43

Commercial Paper

Original post by Alex-Torres

No, this is incorrect.

I can absolutely 100% confirm at every single top tier bank in London the base salary is at between £45-55k starting currently. And then if you include a relocation allowance/sign-on bonus/end of year bonus, this usually adds on another £10-30k, varying by bank/team/performance.

There was also recent research published by eFinancialCareers that showed both Analyst (graduate)/Associate salaries that is more accurate - cannot find the link right now as reception on my floor is ****. But scroll through the news and you'll find it.

Other metrics that get published are often inaccurate because they cluster different roles within banking together which skews the average downwards or only take into account the base salary (which is often out of date). But in a pure investment banking role at a top tier bank, this is absolutely what you earn as a graduate.

Anton Kriel is out of date with his figures I imagine however I accept that taxes are very high at this level in the UK, and this can bring your salary down dramatically and rent is also very high here. However, I exclude these factors as everyone has to pay taxes/rent so you would do this regardless of profession.

(edited 8 years ago)

Reply 44

welcometoib

Original post by Alex-Torres

im 100% sure nearly all top ibs have a base of 50 now

Reply 45

fuuji

Original post by Alex-Torres

Fairly sure I used to work in IBD and first year analyst pay was 50k. Yes lidl pays higher base then Centerview ok. If I recall centerview is actually 65k.

Reply 46

Ib7637ib

Original post by fuuji

Fairly sure I used to work in IBD and first year analyst pay was 50k. Yes lidl pays higher base then Centerview ok. If I recall centerview is actually 65k.

Boutiques are paying a ton right now. Elites and small shops with good origination are paying 10-50 percent more than bbs to get people and in some cases even more (centerview have some second year analysts on 200k+ usd).

If I decided to move to a BB for exit opps I would be taking a pretty significant cut.

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(edited 8 years ago)

Reply 47

MAINE.

Original post by Alex-Torres

yes, Lidl are paying higher base saalries than investment banks :lol:

Reply 48

MAINE.

Original post by fuuji

Fairly sure no dealmaker or trader at an investment bank makes more then the CEO. Lloyd Blankfein is a billionaire after all, CEOs at the bulge bracket banks tend to have compensation in the 8 figure range.

Blankfein is the true definition of a hustler. Was born in the projects in the bronx and now worth a billion. Inspiring.

Reply 49

fuuji

Original post by MAINE.

Blankfein is the true definition of a hustler. Was born in the projects in the bronx and now worth a billion. Inspiring.

He's just doing the lords work. Impartial advisory and market making. Such a saint <3

Reply 50

RunningBack34

Keep in mind that the high fliers report mentioned aldi and european commision as being the highest published starting salaries, most investment banks dont post salaries. Read further into the report, of the investment banks within the top 100 grad employers the average starting salary was 45k.