Are the rumors true?

I'm only in first year, so I don't know too much about the ibanking industry yet, but I've been told the hours are ridiculous (like 80-100 hrs each week).

Is this true? Is the typical ibanking job like 8-11pm a day or something ridiculous like that?

What is the average starting salary for students coming right out of undergraduate studies?

Thanks.

 

Yes it's true. Usually about 9am - midnight 5 days a week (that's 75 hours) then weekends as needed to finish your work (count on usually about 10 hours, 5 a day).

Now of course you can have less if it's a slow week, or more if you're on a few deals.

Average comp out of undergrad has been discussed a number of times, but it breaks down like this:

Base (guaranteed): ~$60,000 Bonus (based on performance, both individual and firm): anywhere between $40,000 and $90,000.

So, total compensation first year is usually between $100,000 and $150,000. These numbers (the bonus particularly) can drop significantly in bad times.

- Capt K - "Prestige is like a powerful magnet that warps even your beliefs about what you enjoy. If you want to make ambitious people waste their time on errands, bait the hook with prestige." - Paul Graham
 

As a follow up:

The reason the hours in banking are bad (in my opinion) stems from the fact that it is a client service business. You have to be ready whenever the client needs you, no matter how ridiculous the demand. After all, they are paying you a few million in fees...

The bottom line is that in banking, your batting average is very low. That means you may have to pitch 10 companies before you get signed onto a deal. That means 9/10's of your work is wasted.

You need to take a lot of swings to get your deals.

- Capt K - "Prestige is like a powerful magnet that warps even your beliefs about what you enjoy. If you want to make ambitious people waste their time on errands, bait the hook with prestige." - Paul Graham
 

Hmm, sounds interesting. I'd be willing to work hours like that for a few years, then perhaps focus on something else in the future - is this possible?

I imagine with a more senior position you'd be able to eventually cut the hours and get paid more...is this true?

What field are related to ibanking that many people either switch into, or switch from?

I know that as a youngster, I'm all about having lots of money while I'm young - so working long hours won't stop me from enjoying my job...but after a long time, that could change I imagine...

Thanks for your comment - I appreciate it.

 
Best Response

DO NOT go into I-banking thinking that the money you make will offset the hours you put in. Yes, you can earn great pay your first years out of undergrad, but if you live in NYC (or any major city), you better believe that money will go fast. Youre not going to come out of undergrad, make 100K, and be super rich. Taxes, housing, food, etc. will take care of that. You live in NYC, you will not be more wealthy than your buddy who started an entry level job making 55K at a Fortune 500, living outside of a major city. You will however have the exit ops to bigger and better things down the road. PE, hedge funds, etc.

So before you dedicate yourself to pursuing I-banking make sure you are interested in the actual work (17 hours a day of excel), you dont mind blowing off your Friday night plans with friends/family/or significant other at the last minute for work over and over again (matter of fact you'll pretty much become non-existant to them), and finally you dont mind sleeping 4 hours a night 6 or so days a week, for 2-3 years.

Money should be the last thing on your mind right now

 

When you start looking for jobs, you need to figure out where your priorities are at this point in your life.

A lot of people come out of undergrad with the idea that they don't mind essentially giving up the next 2-3 years of their lives to get the best work experience possible so they work for BB in NYC. Others decide they are more interested in having lot of free time when they are young so they go into corp. fin. or sales and trading. Others are looking for something in the middle and work for MM banks outside of NYC.

One option is not necessarily better than the other; it is just where your priorities lie.

https://www.accountkiller.com/removal-requested
 

Sunt delectus repellendus ipsa modi. Minima et ea officia quaerat.

Sequi impedit asperiores facere a. Autem inventore ipsa sint delectus voluptas rerum.

Laudantium voluptas aut cumque eligendi voluptatibus voluptatem. Molestiae provident harum et eligendi dolorum. Et incidunt enim natus eveniet quisquam recusandae sunt dicta.

Qui aspernatur rerum qui itaque ad corrupti sequi. At rem est rerum eum iure et itaque. Quia et recusandae repellendus eligendi suscipit reiciendis eum.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
dosk17's picture
dosk17
98.9
6
DrApeman's picture
DrApeman
98.9
7
kanon's picture
kanon
98.9
8
CompBanker's picture
CompBanker
98.9
9
GameTheory's picture
GameTheory
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”