Is it still what it used to be?

Bonus time is just around the corner and it seems that those voices about who gets how much at which bank are vanishing. People start to realise that huge bonus payments are outdated and that bonus payments decrease year by year (possibly partly offset by higher base salaries etc.) and that in the end the money is merely worth the effort. Surely most juniors believe in exit opportunities and thrive towards excellent job prospects following their banking stint but the general sentiment of staying on board seems even less presence nowadays than ever before. I hardly meet anybody who believes in this industry anymore and most people plan their exit and follow up job meticulously. While I continue to work quite hard (at least I like to think so) it becomes harder and harder to motivate yourself out of pure prospects and learning possibilities etc. I still believe there might be some light at the end of the tunnel but surely at the moment this is not done for the money.

Will investment banking (mainly referring to IBD) become a business model where pay just continuously decreases or levels out for most people (surely senior people etc. will continue to make extremely good amounts of money)? While currently effort, working hours and senior banker demand remain the same or even worse than before it might be very reasonable to expect that eventually this will adjust to the pay the job provides. In a sense work gets adjusted towards pay and willingness of employees to provide their time, health and intellect to the company (constantly at somebodies disposal) will decrease. I could see this moving towards a more corporate banking type of environment where people get their weekends, work less hours and find the ability to balance job and private life.

 
Connor:
RichardPennybags:
So how do we all get rich then?
You ever seen American Greed? Take notes.

Surely you meant

Connor:
You ever seen Wall St.? Take notes.
"Every man should lose a battle in his youth, so he does not lose a war when he is old"
 
Connor:
RichardPennybags:
So how do we all get rich then?
You ever seen American Greed? Take notes.
Do you see how the it ends? It starts with the person making billions and ending with them in prison.
The Four E's of investment "The greatest Enemies of the Equity investor are Expenses and Emotions."- Warren Buffet
 

M&A bankers will always be useful when selling a company.

A great example is the bank I interned at last summer (MM). In 1999 (right before the tech bubble burst), the CEO was contacted by an IT company after it had received a $10 Million dollar offer and the CEO was reluctant to sell. At the first meeting between the IT CEO, the banker, and the potential acquirer, the potential acquirer raised its offer to $15 million. The banker advised the IT company that a sale was in the owners best interest and persuaded the company to run a full sell-side auction process. Two months later, the IT company sold for $30 million. Six months after that, the IT company probably would have been worth 0. That is the value of a banker.

My WSO Blog "Unbelievably Believable" -- RG3
 
21 Lives:
M&A bankers will always be useful when selling a company.

A great example is the bank I interned at last summer (MM). In 1999 (right before the tech bubble burst), the CEO was contacted by an IT company after it had received a $10 Million dollar offer and the CEO was reluctant to sell. At the first meeting between the IT CEO, the banker, and the potential acquirer, the potential acquirer raised its offer to $15 million. The banker advised the IT company that a sale was in the owners best interest and persuaded the company to run a full sell-side auction process. Two months later, the IT company sold for $30 million. Six months after that, the IT company probably would have been worth 0. That is the value of a banker.

this is the most garbage post i seen on wso -1 when i put my contacts in tommorow u noob

 
Best Response
blastoise:
21 Lives:
M&A bankers will always be useful when selling a company.

A great example is the bank I interned at last summer (MM). In 1999 (right before the tech bubble burst), the CEO was contacted by an IT company after it had received a $10 Million dollar offer and the CEO was reluctant to sell. At the first meeting between the IT CEO, the banker, and the potential acquirer, the potential acquirer raised its offer to $15 million. The banker advised the IT company that a sale was in the owners best interest and persuaded the company to run a full sell-side auction process. Two months later, the IT company sold for $30 million. Six months after that, the IT company probably would have been worth 0. That is the value of a banker.

this is the most garbage post i seen on wso -1 when i put my contacts in tommorow u noob

That's an insult to garbage. This is soft, watery projectile poo.

But Rhaegar fought valiantly, Rhaegar fought nobly, Rhaegar fought bravely. And Rhaegar died.
 

Dont think the culture is going to change, it's still going to be a grind it out kind of job at the analyst level. The pessimistic view is that you'll get paid as much as the bank thinks is necessary to retain you so you dont jump ship laterally. I'd still say though its about finding the right bank and the right group. If you find that, it can be rewarding enough monetarily and as an experience.

 

Nam et omnis dolorum eius. Soluta vel id dolores consequatur excepturi dolorem dicta. Aperiam nihil dolores ratione.

Atque odit molestias ipsa eos. Deleniti perferendis nam et soluta dolores praesentium tempore. Et totam enim velit deleniti.

Man made money, money never made the man

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
kanon's picture
kanon
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
DrApeman's picture
DrApeman
98.9
9
GameTheory's picture
GameTheory
98.9
10
bolo up's picture
bolo up
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...”