$100K total comp. for 1st year PWM Financial Analyst?

I thought PWM gets base + a kick in the ass?

A lot of people on this board think of Private Wealth Management and Private Banking as the same thing. I know a few analysts at Private Banks who probably cleared close to 100K as analysts back in 05/06. Private Banking is usually reserved for the high net worth clients and is a much more typical analyst experience (well, as compared to the PWM experience, I should say.)

There is no way. I have two friends at JPM Private BANK not PWM that earn 55 base plus a bonus that is generally half of IB bonuses (think 20-40k)

Not all banks though make distinctions between their Private Wealth Management and Private Banking divisions. Some banks don't have 'Private Banks' because all of their clients regardless of net-worth deal with Private Wealth Management.

Last year half of IB bonuses would have been 45-50k...

I always wondered about the Private bank and PWM distinction. Thanks for clearing it Nystateofmind. When I went for an interview with a BB in NY, I asked the HR person what people did after their two year analyst stint and she told me some people went into PE/HF and industry while the others went to the Private banking division. I was actually a bit surprised when she told me that as I thought that was a step down.

i see people throwing all of these numbers up there but is it just me or is there very little difference (relatively speaking) between 60k + 40k and 55k + 40k????????????

im not trying to call people out but when you put NO WAY and then given an example where someone could make 5k less a year then what was posted just sort of undermines the NO WAY, lol.

Okay well let's take the high end of your scenario: 55 base + 40K (think: 95K). Is that really NO WAY material?

My friends were also at JPMorgan's Private Bank. As nebanker said, half of last year's bonuses puts the bonus numbers closer to 40-45K for top bucket. Also, their salaries were 60K (and if second / third year analysts, higher). That clears 100K. Either way, it's a pissing contest (think: not worth arguing over) and a scenario that's far from INCREDIBLE.

Even if banks don't seperate their PWM and Private Banks, there's still a big difference b/w the analysts working on high net worth clients and those helping financial advisors to mom and pops. And I guarantee the banks have a separate groups w/in PWM exclusively for the upper echelon of clients (so you're argument of PWM same as PB is pointless).

Thanks for playing.

cphbravo that was great.

Analyst 1: I make $60K salary + $40K bonus...

Analyst 2: Damn you! NO WAY do you make that much! I make $55K salary and $40K bonus

LOL.

Yeah I guess my comment didnt make much sense. He made close to 40g's in bonus last year. He worked about 60-80 hours a week as a 2nd year.

Wow, that is really amazing. I had no idea that PWM/PB paid that well.

I am surprised also by the higher bonuses. I guess I really made a great decision after all. I was second-guessing myself about whether I should go into proprietary equity trading. Fortunately, now that I look at it, I will earn more money than I expected (our group deals with the real exclusive clients) and will get to be doing something which I feel I will be much better at and will have some exit opportunities to boot.

hmmmm.. i always tot private banking was the term used for commerical banks and PWM for IBanks, but i guess im wrong..

so basically, Private Banking>private wealth management?

can someone clarify deeper what the differences are?

Some investment banks, such as JPMorgan, have separate Private Banks and Private Wealth Management divisions. Other investment banks, such as Goldman Sachs, only have a Private Wealth Management Division which has a Private Bank area within it.

The Private Bank generally deals with higher net-worth clients while Private Wealth Management can be just your local financial advisor offering services to the local mom and pops.

Dude, there are too many "I think", "I believe", "Not sure on that" statements to make your post credible. Quit pulling out random numbers. PWM does not refer to Private Wealth Advisors (wouldn't that be PWA?). You don't think so what? Who are you contradicting?

Goldman Sachs I know for a fact has a minimum requirement of $10-15 million in assets if you want to be dealing with a Wealth Manager.

Each bank has different amounts that they use to classify as High Net Worth (HNW) and Ultra High-Net Worth (UHNW).

PWM internships at BB's are extremely easy to obtain if you are in NYC (I know a couple of kids at extreme non targets who got PWM internships at bb's) The lack of selectivity for the internships in itself, should give you an indicator that a PWM FT starting salary can in no way possibly compare to IBD.

My best guess would be anywhere from 60-70k all in package as someone previously mentioned on this thread. Depending on firms/location/etc etc

And btw PWM is Private Wealth Management....which falls under the broader umbrella of Asset Management. There's more info on this in the Vault Guide to Investment Management. You should post this thread in the Asset Management forum...I think more people will know what they're talking about over there.

I don't know what you guys aren't reading. There's a difference b/w the banks' PWM bullshit basic financial advisors, and the banks' private bank (whether it's a more exclusive part of the banks' PWM group or separated out as their Private Bank). There's a huge difference b/w the analyst programs at one vs. the other. Please stop lumping them together.

Nobody cares what your "best guess" is because it's just that, a fucking guess.

Agreeing with NYSOM:

PWM can be a confusing term, much like "asset management". Different banks use it in different ways. Can they clear 100k first year? Absolutely (as I know several people in my bank's PB). It isn't a huge amount though: $60k salary (re: the guy at the top, I don't think any BB pays $55k for ANY FO job), $10k sign-on, and about $15-35k EOY bonus. That puts the range at about $85k-$105k. Lower PWM jobs (like those that do WM for <15M) probably make less, but I can't confirm or deny that.

Mack's comment seriously cracks me up: How would you even know? Based on "selectivity for the internships"? The people that start as FT in PWM groups at GS or UBS, where lots of kids do their sophomore internships, probably don't pay too much (I'm not in the PWM industry, so I have no idea), but that doesn't mean you can write off the entire industry. Especially when the OP may be coming here for legitimate career input. Why would you regurgitate something you don't even know?

In addition, everyone loves to make oversimplified generalizations. "Asset management", "investment management", "wealth management" all mean different things for various banks. Some banks use IM as the umbrella, while some use it solely for the institutional business (ie. hedge funds, PE, RE, etc). The vault guide for IM is not as useful as it is for IB, as it is a completely different and diverse industry and should be prepared for contingent on who you're interviewing with.

Sorry for being rude -- just get extremely annoyed when people write threads on topics they are clueless about.

Cheers.

I've had multiple interviews and offers in wealth management at BB's, so I have a pretty good idea of the distinction. Let's take Merrill Lynch, for example. They have a Global Wealth Management Group and a specialized team within that group called Private Banking. The regular Global Wealth Management financial advisors (FA's) deal with people with $1-10 million. The Private Banking FA's deal with people with $10+ million. The reason they do this is because there is a difference in perspectives between high net worth individuals ($1-10 million) and ultra high worth individuals ($10+). High net worth individuals care more about protecting and growing their money. Ultra high net worth individuals care more about their legacy (i.e. what impact they make on society), so Private Banking FA's will not only help their clients protect their money, they will advise them on issues such as which charities to donate their wealth to.

It's basically the same situation at the other firms. Morgan Stanley has a Global Wealth Management division and a specialized group within it called Private Wealth Management. Basically at the BB's, anytime there is the word "private" in the name of the division, it's the elite group that deals with people with at least $10 million. Regular FA's only deal with $1-10 million clients. Thus, it's actually a misnomer when people say PWM because most people in wealth management do not actually work in PWM. Only the best of the best are selected to join that elite group. The PWM divisions at each firm will recruit the top producers not only at their own firm, but other firms as well.

Interesting topic. Does anyone know what the comp progression looks like for these "private bankers"? What kind of work/analysis will the first and second years be doing?