Do most Associates have an MBA?

11y

Best Response

In IBD, I would say most BB associates have an MBA. The ratio is probably 4:1 based on my experience (curious what others have observed). This is largely because most analysts are either good at it, and get an attractive opportunity to leave, or hate it, and leave anyway (sometimes both). From what I've seen, if you're a decent banking analyst today, the firm tries to keep you but struggles to do so. This is a reversal from an era not long ago (maybe ten years?) when an associate promotion offer was coveted and somewhat rare.

In sales and trading it's quite a bit different. The analyst programs tend to be shorter (two years vs. three), and the majority of S&T analysts seek the associate promotion and try to stay. Unlike in banking, not everyone who wants the promotion will get it. However, the proportion of non-MBAs ends up being much higher in S&T--I want to say it's more like a 1:1 ratio?

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APAE

The Pro

11y

MD explained it to me this way once, and I find his rough approximation to be fairly accurate. He divided each analyst class into quarters.

One fourth will want/get the A2A promote and take the third analyst year placing them on track for promotion on the sell side. Another will be highly rated, successful, and competent and therefore be snapped up before their analyst stint ends or leave it with an offer already in hand for awhile. Another fourth will be sick of the industry and have decided finance is not for them (or already anticipated it going in) and have no intention of sticking around after the two year mark. The last are the few who either aim for the MBA right away or who just aren't successful enough to warrant an offer from the firm and essentially get cut.

Hope this breakdown helps.

I am permanently behind on PMs, it's not personal.

West Coast rainmaker

Almost Human

11y

APAE:
One fourth will want/get the A2A promote and take the third analyst year placing them on track for promotion on the sell side. Another will be highly rated, successful, and competent and therefore be snapped up before their analyst stint ends or leave it with an offer already in hand for awhile. Another fourth will be sick of the industry and have decided finance is not for them (or already anticipated it going in) and have no intention of sticking around after the two year mark. The last are the few who either aim for the MBA right away or who just aren't successful enough to warrant an offer from the firm and essentially get cut.

This is amazingly accurate. Depending on the firm, a few more might leave with offers in hand...but overall the breakdown is spot on. Most people that go into banking do not stay around for long.

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maseratimike

Senior Monkey

11y

West Coast rainmaker:
APAE:
One fourth will want/get the A2A promote and take the third analyst year placing them on track for promotion on the sell side. Another will be highly rated, successful, and competent and therefore be snapped up before their analyst stint ends or leave it with an offer already in hand for awhile. Another fourth will be sick of the industry and have decided finance is not for them (or already anticipated it going in) and have no intention of sticking around after the two year mark. The last are the few who either aim for the MBA right away or who just aren't successful enough to warrant an offer from the firm and essentially get cut.

This is amazingly accurate. Depending on the firm, a few more might leave with offers in hand...but overall the breakdown is spot on. Most people that go into banking do not stay around for long.

i agree. that is the BEST answer you are going to get

drexelalum11

Almost Human

11y

From the European perspective, MBAs are rare. In fact, we've stopped hiring MBAs entirely - they're not as good as direct promotes, and they're more expensive. Before that change, I'd say the ratio was about 5:1 of A2As:MBAs. It's assumed you'll get the Associate promotion if you stick around.

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mnin

Gorilla

11y

drexelalum11:
From the European perspective, MBAs are rare. In fact, we've stopped hiring MBAs entirely - they're not as good as direct promotes, and they're more expensive. Before that change, I'd say the ratio was about 5:1 of A2As:MBAs. It's assumed you'll get the Associate promotion if you stick around.

Yeah, but the flip side is everyone has a masters, usually not an MBA but something businessy.

drexelalum11

Almost Human

11y

cibo:
drexelalum11:
From the European perspective, MBAs are rare. In fact, we've stopped hiring MBAs entirely - they're not as good as direct promotes, and they're more expensive. Before that change, I'd say the ratio was about 5:1 of A2As:MBAs. It's assumed you'll get the Associate promotion if you stick around.
Yeah, but the flip side is everyone has a masters, usually not an MBA but something businessy.

More masters, certainly, but that's coming in at analyst level. Probably half the analysts have masters of some sort.

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2 replies

mb666

11y

Most... yes for sure

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Maximus Decimus Meridius

11y

S&T Associates in Europe don't generally have MBAs, at least from my experience. Maybe 50 analysts come in from UG and 3 or 5 MBAs in every year new hires, and people don't have the need to leave and get an MBA to get promoted. Probably what some people said about everyone having an MEng, MFin etc... at the analyst level is relevant.

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Scott Irish

11y

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