[Careers-in-finance] Investment Banking: Salaries

자료: careers-in-finance, http://www.careers-in-finance.com/ibsal.htm

(2009년 9월 10일 접속)

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Starting salaries in investment banking positions with a bachelors degree after bonus (assistant or junior analyst position) range from $60,000 to $70,000. Starting salaries with an MBA degree range after bonus (associate position) range from $80,000 to $150,000. These salaries vary with firms and with the region of the country you are in. Bonuses typically would be 10-50% of salary to start and can move to one to three times salary later. Lately, salaries have increasingly included an equity component which may not be liquid for up to three years, although as an analyst you would typically be sheltered from this. This is good for the banks because it makes it much harder for people to move around.

As we write this in the Summer of 2009, banking salaries and bonuses are under attack due to the TARP program and the notion that public bailout payments might be subsidizing undue payouts. Nonetheless, it is important to bear in mind that many investment banks will continue to pay good bonus compensation, that times will eventually improve and that many firms did not participate in the bailouts anyway.

Generic salary advice: Some firms tend to pay less than others because they can get away with it. You might actually be better off taking less. Obviously don't give yourself away but at the entry level, the quality of experience you get and the strength of the people you will work with are far more important than how much you get paid. You are trying to maximize the present value of your future earnings and enjoyment. This may involve taking lower pay now. Or, if you're lucky, it might not.

Salaries are down. All-in salaries plus bonuses are generally down 40% to 80% from their peak in 2007, depending on the firm. Quite a few people have been laid off or have received zero bonuses. Bonuses should trend up sharply from 2008 levels in 2009 and 2010. Bulge firm salaries typically run 20% to 40% over boutiques and regional firms (although there are prominent exceptions to the rule). Forecast salary ranges in the 2009 to 2011 period are as follows:

Salaries in Investment Banking (with bonus)
Job Level	Salary Range	Typical All-in Comp	Prerequisite (degree/yrs experience)
First Year Analyst	$60K - 150K	$90K	Bachelor's
Third Year Analyst	$120K - 300K	$150K	Bachelor's
First Year Associate	$150K - 250K	$170K	MBA
Third Year Associate	$250 - 450K	$300K	MBA
Vice President	$350K - 1MM	$500K	3-6 years
Director / Principal	$400K - 1.5MM	$700K	5-10 years
Managing Director / Partner	$500K - 20MM	$800K	7-10 years
Department head	$800K - 70MM	$2MM	10+ years

Note: This table is based upon conversations with banking insiders in 2009. MM denotes millions. K denotes thousands of US dollars.