Career Path from IBD Analyst to F500 Corporate Finance?

I've seen a decent amount of info for what the progression is like when coming in straight from undergrad, but can someone shed some light about at what level an IBD analyst would typically come in at an F500 company after two years and what kind of responsibilities, rotations, comp. etc. to expect?

Are IBD analysts considered for rotational positions or do they go into a specific group? Does an MBA help down the line? How is the role different compared to what you would do straight out of undergrad or after an MBA?

 

Way too many variables here like industry, size of company, previous experience etc. With 2 yrs experience and no mba, I'd say senior/principal analyst depending on the org structure but probably on the higher end of the salary range.

 

I agree that there are too many variables here but I would guess you would be a borderline FA/SFA candidate depending on the company. Most companies (mine included) won't hire experienced people into their rotational programs unless they are fresh out of undergrad or a masters program.

For comp...highly variable on city and company size, but assuming a major metro area and a large F500, probably 65-75K base with a bonus in the range of 10-20%. This would be extremely variable and is a complete guess.

For comparison. People who grad my develop program make just south of 70K. SFAs are 70-90K in general.

 

This all anecdotal. I'm making a point of saying this because I've got a shitload fewer data points here than I normally do.

The only guys that I've talked to have made the jump from banking to CorpDev (of course, I've only talked to 2). One came in as a Senior FA and one as a normal FA (made senior 1 year later if I remember correctly). The one that came in as Senior said he got "around" $80-90k salary, didn't mention bonus or anything. Oh, he also had done 3 years in IB. No idea about the other.

I've never heard of experienced hires being brought into entry-level finance dev/rotational programs. Some companies offer a rotational to employees who've been there for 1 year, but you're not in that category. Some companies also offer mid-range dev/rotational programs that don't require an MBA, but they usually require 2-3 years at the company.

You will apply to a position for a specific group. The benefit of coming from IB is you'll have a shot at CorpDev, and to a lesser extent CorpStrat (they generally go after consultants for Strat, though it's by no means unheard of for an IB analyst to get an entry-level Strat position).

If you don't get into dev/strat/similar, you'll probably be doing pretty much the same things as people who come in straight out of UG and have been working for a couple years. Really where you have a leg up is the chance to break into CorpDev and other highly sought after areas that most "regular" FAs don't have a shot at. Post-MBA is completely different as they're usually coming in at the Manager level.

A lot of companies require an MBA to move up and a lot of companies don't care. What the MBA does help with is getting you to the Manager position. It can be used by a Senior FA whose career has stagnated OR by someone who just wants to move up more quickly.

A WORD OF WARNING: Most companies that I've seen want to see 3-4 years pre-MBA of work experience. This may not apply to you since you worked in banking, that may be directed at people who worked for a couple of years in corpfin and then got their MBA (somehow, dunno how they'd make that happen...) or went Peace Corps -> MBA. To be fair, this is from doing research on Finance Development Programs. The deal might be different for someone who goes and gets their MBA and just wants to start working in corpfin without a specific program.

If you want to do a rotational program, getting an MBA is a smart move because there are a number of post-MBA FLDPs. You'll have to do some research, just go down the list of F500s and look at their university/student careers sections.

I'm going to reiterate this: this is all anecdotal, don't take my word for any of this

"You stop being an asshole when it sucks to be you." -IlliniProgrammer "Your grammar made me wish I'd been aborted." -happypantsmcgee
 

it will depend on the role, but job titles could be anything from financial analyst/associate to senior financial analyst/senior associate. if you're are browsing openings online, look for roles that mention investment banking as required/preferred experience. jobs will likely be focused on corporate development or something related. i would imagine these jobs pay more than generic fp&a ones, but don't have any direct knowledge.

if you are looking for more generic fp&a, similar to a big 4 cpa jumping after 2-3 years, i would expect to come in as an SFA in the $70-90K range.

 

You'd probably go in as a SFA. At my company, with your experience, SFA would get ~$85-110K, Mgr would get $100-140K... pre-bonus. Feel free to PM me w/ any specific questions.

 

True but keep in mind with IB experience you should be able to thrive and subsequently advance quicker than your peers. Companies cant just bring in a dude with 2 yrs exp, and pay him like a Sr Manager (well in most cases)

 
td12:

True but keep in mind with IB experience you should be able to thrive and subsequently advance quicker than your peers. Companies cant just bring in a dude with 2 yrs exp, and pay him like a Sr Manager (well in most cases)

Some of the larger and more acquisitive F100s with in-house M&A organizations are the exception and can comp relatively competitively these days (especially when you factor in benefits/MBA sponsorship).

 
Best Response

it really depends on what role you take. if you are making the jump from ibanking to a generic corporate finance SFA position, while your ibanking experience will be respected and valued, there is no reason for a company to pay you more than the next guy who came from the big 4. now, if you are making the jump to a job focused on corporate development, strategy, M&A, etc, than i would expect to earn a premium relative to the generic corporate finance jobs given the niche focus of the job and specific skill set required. look for job descriptions that specifically require investment banking experience. groups and departments that routinely pick up ibanking alums.

still, there is no reason for a business to pay their corporate finance folks (at the analyst, senior, and manager) levels the same as an investment banking analyst. the market doesn't warrant it, and unlike ibanking, they will simply hire two people at $75K a pop, rather than work a single person 80+ hours a week for basically two salaries.

 

I definitely agree with what Bird said above, to a certain extent. In my experience, I've seen an very wide salary band for the same "level" in corp fin (I came from ibd and I'm pretty certain I was making more than than the avg). For example, a SFA with a Booth MBA could be making $110K (pre-bonus) while a guy with a few yrs of experience and no MBA could be making $80K, even if they are doing essentially the same job. Most hiring Mgrs are willing to pay a premium for talent because, in all reality, it's not their money... so as long as it's in the budget, it really doesn't matter.

p.s. An extra 20K or so is always in the budget for your salary at many profitable f500 groups that are looking for top talent, regardless of what the hiring Mgr/Director says... if not, red flag. Happy to answer any other questions..

 
Poff:

I definitely agree with what Bird said above, to a certain extent. In my experience, I've seen an very wide salary band for the same "level" in corp fin (I came from ibd and I'm pretty certain I was making more than than the avg). For example, a SFA with a Booth MBA could be making $110K (pre-bonus) while a guy with a few yrs of experience and no MBA could be making $80K, even if they are doing essentially the same job.b Most hiring Mgrs are willing to pay a premium for talent because, in all reality, it's not their money... so as long as it's in the budget, it really doesn't matter.

p.s. An extra 20K or so is always in the budget for your salary at many profitable f500 groups that are looking for top talent, regardless of what the hiring Mgr/Director says... if not, red flag. Happy to answer any other questions..

[/b]

Both point are so true.

- V
 

Hard to say as a broad generalization -- but, I've seen it in both Consumer and Financial Services. If they want you, and it's a good company, you'll get a fair salary. I say this from both a interviewer and an interviewee perspective.

 

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