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    Not massive money.

    Those car company CEO salaries that have been disparaged in the media lately, peaked at around 10 million EUR.

    That's after decades of experience.

    You will almost certainly NOT earn that amount in IB. You may peak at low seven figures if you plan your career trajectory almost perfectly.
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    (Original post by DrownedDeity)
    Not massive money.

    Those car company CEO salaries that have been disparaged in the media lately, peaked at around 10 million EUR.

    That's after decades of experience.

    You will almost certainly NOT earn that amount in IB. You may peak at low seven figures if you plan your career trajectory almost perfectly.
    Depends.. GS PMDs certainly can break that figure, not to mention partners at elite boutiques/top independents.

    It's also possible to break that in upper middle market/megafund PE, HFs (PM only) and large scale (managing a huge book) asset management firms.

    There's quite a range and it depends entirely on your performance once you get to the big leagues.

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    (Original post by Princepieman)
    Depends.. GS PMDs certainly can break that figure, not to mention partners at elite boutiques/top independents.

    It's also possible to break that in upper middle market/megafund PE, HFs (PM only) and large scale (managing a huge book) asset management firms.

    There's quite a range and it depends entirely on your performance once you get to the big leagues.

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    Any data? Source?
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    (Original post by DrownedDeity)
    Any data? Source?
    http://qr.ae/8HBuxI - average has skewed lower for PMDs but certainly, heads of groups and divisions will be close or above 8 figs.

    http://www.wallstreetoasis.com/forum...40s-and-beyond - post by mergersandacquisitions78 (verified MD in IBD for a BB)
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    (Original post by Princepieman)
    http://qr.ae/8HBuxI - average has skewed lower for PMDs but certainly, heads of groups and divisions will be close or above 8 figs.

    http://www.wallstreetoasis.com/forum...40s-and-beyond - post by mergersandacquisitions78 (verified MD in IBD for a BB)
    Cheers
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    (Original post by King Scorchy)
    Are there opportunities to make huge amounts of wealth in investment banking?

    Would you be able to make massive money by learning how the big banks invest and applying it to your own capital?

    And how would this happen?
    Depends what you mean by massive money. If you listen to what MDs at investment banks say you won't make 'massive' amounts of money. You will however still make lots of money, by peak career certainly in the hundreds of thousands a year if you do well.

    Take for example Greenhill & co. a fairly prestigious boutique investment bank. The average compensation for their investment bankers was under £100,000 in 2014.

    Whereas at Goldman Sachs in the UK the highest paid staff member was paid £1.9 million in 2014 and the average compensation for all staff in the UK was around £470,000 (ranging between £40,000 for support staff to £1.9 million for the top paid director (however this figure includes consultants etc. who have chargeout rates up to £1,000 an hour... so it is very positively skewed and actual average earnings for employees of GS would be far lower.)).

    For anyone questioning the figures, they are publicly available if you know where to look - and if you don't know where to find them you probably shouldn't be considering a career in IB.
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    (Original post by natninja)
    Depends what you mean by massive money. If you listen to what MDs at investment banks say you won't make 'massive' amounts of money. You will however still make lots of money, by peak career certainly in the hundreds of thousands a year if you do well.

    Take for example Greenhill & co. a fairly prestigious boutique investment bank. The average compensation for their investment bankers was under £100,000 in 2014.

    Whereas at Goldman Sachs in the UK the highest paid staff member was paid £1.9 million in 2014 and the average compensation for all staff in the UK was around £470,000 (ranging between £40,000 for support staff to £1.9 million for the top paid director (however this figure includes consultants etc. who have chargeout rates up to £1,000 an hour... so it is very positively skewed and actual average earnings for employees of GS would be far lower.)).

    For anyone questioning the figures, they are publicly available if you know where to look - and if you don't know where to find them you probably shouldn't be considering a career in IB.
    You can make just as much as a big4 partner

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    (Original post by Gladiatorsword)
    You can make just as much as a big4 partner

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    In fact your average big 4 partner earns more than your average MD at an investment bank.
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    (Original post by natninja)
    Depends what you mean by massive money. If you listen to what MDs at investment banks say you won't make 'massive' amounts of money. You will however still make lots of money, by peak career certainly in the hundreds of thousands a year if you do well.

    Take for example Greenhill & co. a fairly prestigious boutique investment bank. The average compensation for their investment bankers was under £100,000 in 2014.

    Whereas at Goldman Sachs in the UK the highest paid staff member was paid £1.9 million in 2014 and the average compensation for all staff in the UK was around £470,000 (ranging between £40,000 for support staff to £1.9 million for the top paid director (however this figure includes consultants etc. who have chargeout rates up to £1,000 an hour... so it is very positively skewed and actual average earnings for employees of GS would be far lower.)).

    For anyone questioning the figures, they are publicly available if you know where to look - and if you don't know where to find them you probably shouldn't be considering a career in IB.
    That GHL figure is BS, analysts make close to that there. All of these figures are pretty much off tbh, compensation isn't just an equation of total comp spend over no. of employees. Banks have a heavy weighting (usually 2/3rds to 3/4s) towards back office and back office generally get paid much less than FO guys.

    Your £1.9mil figure is also off because most staff at GS don't disclose how much money they make. Partners at GS will be pulling in much more than that, and the best 'paid' staff member will be at least 5-10x that figure.

    If you want to see how comp works, I found some data on how Lehman structured their comp for associates to SVPs back in the boom times. Obviously, nowadays these numbers will be a lot lower: http://dealbreaker.com/2012/04/bonus...-paid-in-2007/

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    (Original post by Princepieman)
    That GHL figure is BS, analysts make close to that there. All of these figures are pretty much off tbh, compensation isn't just an equation of total comp spend over no. of employees. Banks have a heavy weighting (usually 2/3rds to 3/4s) towards back office and back office generally get paid much less than FO guys.

    Your £1.9mil figure is also off because most staff at GS don't disclose how much money they make. Partners at GS will be pulling in much more than that, and the best 'paid' staff member will be at least 5-10x that figure.

    If you want to see how comp works, I found some data on how Lehman structured their comp for associates to SVPs back in the boom times. Obviously, nowadays these numbers will be a lot lower: http://dealbreaker.com/2012/04/bonus...-paid-in-2007/

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    Analysts at GH make £40K plus roughly 10K in cash bonus - the bank is notorious for paying bonuses in stock options.

    BTW the GS figure is a mandatory disclosure and only takes into account cash compensation. The total cash comp of the highest paid staff member must be disclosed for certain companies, you won't find it in the main body of the accounts though.

    Partner's at GS get a lot of their salary in options (also disclosed but requires a lot more trawling through filings that I frankly don't have time for).

    (Also IB employees are notorious at BSing their salaries. At higher levels, bankers are paid less than most other 'city' jobs)
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    (Original post by natninja)
    Analysts at GH make £40K plus roughly 10K in cash bonus - the bank is notorious for paying bonuses in stock options.

    BTW the GS figure is a mandatory disclosure and only takes into account cash compensation. The total cash comp of the highest paid staff member must be disclosed for certain companies, you won't find it in the main body of the accounts though.

    Partner's at GS get a lot of their salary in options (also disclosed but requires a lot more trawling through filings that I frankly don't have time for).
    Lol, you're still getting these figures from thin air. GHL is £50 + £10 + end of year bonus that's usually slightly above street. Analysts may get say ~10% of their bonus in stock but it doesn't affect them for the most part.

    No, it's not mandatory. It's for 'key risktakers', there are 100s of people who fall out of the requirements for submittal of comp. GS pay significantly more on the higher end of the comp scale than you are making out, I feel you're missing a substantial long tail end here..

    Well yeah, every bank now defers comp in some way but it still doesn't detract from the fact that GS partners have a specific bonus pool that is incredibly more generous than what's available to standard MDs.

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    (Original post by Princepieman)
    Lol, you're still getting these figures from thin air. GHL is £50 + £10 + end of year bonus that's usually slightly above street. Analysts may get say ~10% of their bonus in stock but it doesn't affect them for the most part.

    No, it's not mandatory. It's for 'key risktakers', there are 100s of people who fall out of the requirements for submittal of comp. GS pay significantly more on the higher end of the comp scale than you are making out, I feel you're missing a substantial long tail end here..

    Well yeah, every bank now defers comp in some way but it still doesn't detract from the fact that GS partners have a specific bonus pool that is incredibly more generous than what's available to standard MDs.

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    Are you in IB?

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    (Original post by Gladiatorsword)
    Are you in IB?

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    Nope, have significant intel through contacts/friends who work across the industry.

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    How is there a 17 page thread when the simple answer was 'Yes, if you join IBD'
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    (Original post by lolatmaths)
    How is there a 17 page thread when the simple answer was 'Yes, if you join IBD'
    obviously other discussions have branched
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    (Original post by natninja)
    In fact your average big 4 partner earns more than your average MD at an investment bank.
    Really? What's the source of this information?


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    (Original post by egdargi)
    Really? What's the source of this information?


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    Standard bs.

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    (Original post by egdargi)
    Really? What's the source of this information?


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    Company filings and people i know in the industry.
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    (Original post by Princepieman)
    Lol, you're still getting these figures from thin air. GHL is £50 + £10 + end of year bonus that's usually slightly above street. Analysts may get say ~10% of their bonus in stock but it doesn't affect them for the most part.

    No, it's not mandatory. It's for 'key risktakers', there are 100s of people who fall out of the requirements for submittal of comp. GS pay significantly more on the higher end of the comp scale than you are making out, I feel you're missing a substantial long tail end here..

    Well yeah, every bank now defers comp in some way but it still doesn't detract from the fact that GS partners have a specific bonus pool that is incredibly more generous than what's available to standard MDs.

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    Material risk takers includes quantitative criteria: anyone earning over €500,000 I believe. If that's the case, then any 'long tail' is already contained in the data.
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    (Original post by throwawaycon)
    Material risk takers includes quantitative criteria: anyone earning over €500,000 I believe. If that's the case, then any 'long tail' is already contained in the data.
    There's an opt out provision:
    "if a firm can show that a relevant employee who is otherwise caught has no material impact on the firm's risk profile, then that employee can be excluded from being code staff."

    Which would include a lot of i-bankers/salespeople. Maybe not so for traders/credit lending teams.

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