Corporate Banking: Hidden gem?
Hello all, currently a 2nd year corporate banking analyst at a non-BB balance sheet bank. The work is….interesting…sometimes. Other times it’s actually rather boring. I’ve been networking heavily with alumni to possibly jump over to an EB next year, but after reading some posts on here about the hours you people work and the mental distress that comes with it, I’m having serious doubts. I found the work in IB more interesting, but I’m pulling max 60 hours a week with very rare weekend work and IB base pay. Is it worth jumping to the EB or should I really appreciate what I have right now?
Hey there! It sounds like you're in a bit of a pickle. On one hand, you've got a steady gig with manageable hours, but on the other, you're yearning for something more exciting, albeit with a heavier workload.
Based on the most helpful WSO content, it seems that the decision between Corporate Banking (CB) and Investment Banking (IB) at an Elite Boutique (EB) really comes down to your personal priorities and career goals.
Here are a few things to consider:
Work-Life Balance: You mentioned that you're currently working around 60 hours a week in CB, which is significantly less than the 70+ hours you might expect at an EB. If maintaining a healthy work-life balance is important to you, staying in CB might be the better option.
Compensation: While the base pay in CB is comparable to that in IB, the bonuses in IB can be significantly higher. If maximizing your income is a priority, moving to an EB could be beneficial.
Career Progression: If you're looking to move into a role with more responsibility and potential for advancement, an EB might offer more opportunities. However, keep in mind that the competition will also be more intense.
Interest in the Work: You mentioned finding the work in IB more interesting. If you're passionate about the work and believe it will keep you motivated despite the long hours, then making the move could be worth it.
Remember, there's no one-size-fits-all answer here. It's about weighing up these factors and deciding what's most important to you. Good luck with your decision!
Sources: IB post MBA, am I missing something?, Corporate banking on the rise?, What is it really like working at an EB?, EB’s are a fucking SWEATSHOP
It’s a personal choice.
I was in a similar position in that I had been working in MM direct lending which is a relative snooze but also interesting at times. I was actively recruiting and networking to move into restructuring however decided to stay given the extra 30% comp doesn’t really materialise given taxation and the additional hours make this a very low hourly income activity. I would prefer working extra hours vocationally doing something I enjoy or perhaps as an independent consultant rather than doing Rx and getting marginally $10 per hour.
Can u dm me about how you got started w networking into rx (I can’t msg you)
What is your MM DL comp?
Only if you want to go into PE
Personally don't think it's worth it if you're happy in your role. You can always go to credit/debt focused PE from your seat. Sounds like you would move as an ASO, you don't have the same PE exits at that point so if you're not trying to stay in IB might as well just save yourself the trauma
I'm in a similar position but not to the degree where I've been networking externally... been thinking about whether I should exit to a more technical role for career development versus staying and enjoying the lifestyle that comes with CB. WLB has been beyond amazing as I never have weekend work and leave around 5:30 - 6 on the regular while getting comped the same as my IB peers (albeit a haircut on bonus). To add, I enjoy my group and sector. I guess only time will tell.
Per your question, it ultimately comes down to what do you want? I suggest reflecting on what you envision for your career and whether CB leads you there, while also thinking about lifestyle considerations. Are you ok with not being to have control over your schedule like you do in CB? Are you prepared to spend less time with friends/loved ones? What will get you through those late nights once you do make the pivot? There's a reason IB has such high attrition and it would be best if you fully think through some of the caveats that come with the switch. Sometimes the grass isn't always greener but if it helps position you to where you want to be career-wise then the pivot could be worth considering.
Not totally off the mark headline in my view. Culture is probably less toxic and less sexually frustrated 34 year-old VPs you tend to find in investment banking, and the work is likely more meaningful if you play the numbers game and actually think about the experience you will have as a junior-level analyst. In the current reality, the experience as a first year analyst in investment banking will likely cause significant harm to your mental health and overall life perspective. Too many NPCs at the VP and director level who take their own insecurities out on entry-level analysts who don't know any better to see that these people are really just lonely creatures who are deeply insecure. Of course, i could be totally wrong here. Some groups have great people with great cultures, but it is rare in my view. And even if you have a great culture, there is an ambiguous unspoken mandate that for some reason you must work 80 hours in order to be successful in advising corporate clients on mergers and acquisitions, when in reality it all comes down to client relationship management and competitive strategy which is much less about the buyer profiles and cookie cutter LBO models and more-so a game of poker among the few actual decision makers in these transactions, and facilitating the process such that you maximize competitive tension and perceived interest in order to maximize transaction value, and fee income for the bank.
Don’t want to hijack the thread but maybe this will give you some perspective—I am in IB and would like to move over to corp banking.
Anybody know somebody who has done this? Would this be relatively easy?
Maybe you two could switch jobs
Haha nice bro!
Now switch wives
Yes it’s easy- just apply you’ll be fine. I cut my teeth on corporate banking- it’s a good gig and decent WLB and prepared me well for a successful career in finance. Life and work is always what you make of it.
I am in ibd at a balance bank and tried so hard to move to corporate banking but it is almost impossible as I am too senior (almost vp).
Our ibd basically lays off 10% people every 3 years and most of us have no exit due to poor brand name and deal flow.
Meanwhile our corporate banking team is killing it with steady revenue, stable career and many promote to senior management within the group (the country/regional heads globally are all ex-corporate banking, the functional heads are usually ex-s&t)
Once they hit pass the certain inflection point as they become regional heads (where ibd md reports to them), their pay shot up exponentially
Even if one just stays at director grade in corporate banking, it is 300-350 usd a year (in hong kong, similar post in the US would be 500-600+) with 9-7 no weekend work
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