Bank Tellers make more than IBD analysts (Hourly)
I don't understand why you all brag about how much comp you make. As a a finance major this seems like simple math:
On call 24/7/365 so you are working 24752= 8736 hours
Assuming avg all in comp ~ 140k we have hourly salary = 140k/8736= $16.03
But you have to pay taxes due to that salary (while bank tellers don't)
So now assume a 30% tax rate
Adjusted hourly wage = $11.21
This doesn't even include opportunity cost of health, etc.
Meanwhile Bank tellers make $13-$15 an hour.
So my question is why do you all brag about high comp when your comp is low? Does the prestige motivate you to do IBD? What is it about investment banking that makes it hip?
Not too sure if I’m missing something, but I was a teller for 4 years and got taxed every pay check
I looked into it and you're right. However I don't think I'm entirely wrong still. Because investment bankers and bank tellers lie in different tax brackets (and NYC taxes the rich more heavily) I think my claim may still hold (or the salaries or close). If you could provide rough estimate of your tax percentage and we had an investment banker weigh in it would be interesting to see.
It doesn't seem like you understand how tax brackets work.
Federal Tax Brackets
New York Tax Brackets
Bonus! A handy NY State Income Tax Calculator
Can you explain your comment? I don't follow.
IB is the gateway to other cool, interesting & most importantly high paying careers. That's why most people go into it.
This post is pretty dumb tbh
See my post at the end of this thread
Sorry all of the IBs you applied to didn't think you were smart enough, sport.
According to your logic a firefighter makes $5 an hour before tax.
In year 3 someone in IB makes close to $250,000. How much does a teller make in year 3?
Another 3 years later a VP makes over $500,000.
This doesn't even consider a potential switch to PE or HF which would be even more $$ and less hours.
12 years ago we used to compare McDonald workers to bankers per hour worked, and it was similar in the first year. To be taken with a grain of salt and a bit of humor.
Dude, you literally assumed someone would work 24/7 for a year without sleep and time to eat/shower or bloody stretch the legs for 5 seconds
Doodly doodly doodly doo
In other professions time you are on call is paid time. It's frequent in med for doctors to be on call on weekends so they can make MORE money. They don't get paid based on whether they are actually called into the hospital/work or not, the pay is derived for being on call.
Even with your insane assumptions of working literally 24/7, bank tellers still make the same post-tax per hour as a first year analyst. Also, last time I checked I don't pay my rent "adjusted per hourly rate".
This can't be a serious post.
24/7 is not an insane assumption. As I mention above in other professions time you are on call is paid time. And to say you are not on call 24/7 would be inaccurate. How many times has your MD interrupted you in the middle of the night to change formatting on PPT. What about that PTO that you never get? And how about weekend plans/ dates being cancelled due to last minute work?
Never
this is blatant trolling. everyone but op is retarded.
I started to type a response but then realized OP is probably too dumb to understand why his argument is flawed...
How many times are we gonna have this thread
OP please post again in the future to tell us which bank you are working for, so that I can short it.
And what will you do if I end up at your firm :)
Get rid of you and ruin your life.
except i have 140k at the end of the year and you have more like 40...
and comp goes up almost exponentially in IB, not sure what tellers peak at but highly doubt it's 6-figs
tellers with a UG degree def have exit ops see my post below.
140k maybe but you have to live in an expensive flat in Manhattan and buy expensive food/clothes. I can live in the suburbs and commute with living expenses much cheaper (that is if I decided on NYC as well)
Nobody is going to rob an investment bank, so when you consider the risk of a hold up as a bank teller, you couldn't pay me enough to risk it, hence the very high compensation for depositing people's cash.
Idk the bank I've been to has metal detectors in the front door and an intricate system where you can't get in unless an internal employee sees that you pass through the scan. I know not every bank is like that but there definitely are banks with added security. In such a case the risk goes down to 0.
Good. Pay me less so that more can be spent on security. Hell, that security guard probs makes more than me since its more dangerous.
OP is obviously a troll
30% tax rate estimate is too low unless you're an analyst selling equities in Dallas
Gotta be a troll.
Also, assume a ~40% tax rate and >$500k annual comp.
Analysts are not making 500k...
Your original post actually is incorrect, and you proved it in your explanation. You said that Bank Tellers make more money and then go on to say that analysts make $140k. You then boil it down to an hourly rate, but that has nothing to do with total compensation, just the rate at which its accumulated. Your post is wrong. Analysts make more money in total, and yes they work more hours. You make $112k less per year than an analyst with your cushy 9-5 earning $14/hr.
Not all that unusual to be making $500k as a 3rd year analyst at an elite boutique
Am I unable to throw MS at the OP?
I see a lot of you are using an exponential growth argument. However attempting to use VP comp to back up your argument has some issues. Most people leave after 2 years as an analyst so those who make VP are few and far in between. Bank tellers have solid exit opps as well (F500 finance, loan officer, etc. esp if you have a UG degree). Also most of you end up going to B school to get those "exit ops" so thats another $100k in tuition + 2 years opportunity cost of salary which is at least $200k. This wipes out 1-1.25 years of IB analyst salary. While tellers have developed intrapersonal skills dealing with customers and have lateraled over you have to go into more debt to get a good position.
Even assuming you are correct, Bank Tellers are one of the most easily automated jobs out there. Retail branches are closing left and right.
Vote Andrew Yang 2020
https://www.bankrate.com/banking/bank-tellers-disappearing/
There is a risk of automation but as I mentioned above with a UG degree you use it as a stepping stone to lateral to other finance careers. It wouldn't be a lifetime move. That's why I'm comparing it to analyst salary as many people here use IB analyst as a stepping stone.
Compensation and hourly rates are different comparisons.
If you used your hourly rate comparisons and asked people to pick a job based on the hourly they would likely pick the higher hourly rate,
If you asked people to pick a job based on total compensation, they would likely pick $140,000 per year than $31,200.
IB still has higher comp, just a lower adjusted hourly rate according to you.
I've edited the OP so that it reflects the hourly component. So my questions still stand:
So my question is why do you all brag about high comp when your comp is low? Does the prestige motivate you to do IBD? What is it about investment banking that makes it hip?
This is either a troll or the dude is literally retarded and hence will make the perfect bank teller. Even if we grant the poorly laid out assumptions, no one is coming to banking because the analyst pay is the greatest thing ever. It's an entry level job at the end of the day. They come for the advancement opportunities and the comp scaling, which are far beyond anything a teller or any hourly employee will ever hope to reach.
I always see comp and money as a factor for doing IBD (at least on WSO).
Hey hey hey take it easy. Us tellers are trying to keep our insanely high comp a secret around here....
Currently a bank teller. Shit blows
You can't compare hourly pay to salary pay by counting all the hours in a year.
For a strict financial comparison, it'd make more sense to financialize the opportunity cost of working more than 8 hours a day from a net earnings perspective.
From a strictly hourly pay comparison, just use 80 hours a week or whatever you think is right (basically double the tellers pay).
From a work life balance perspective - the value of lost time is different for every individual.
This also loses long term benefits. E.g. if you bank your extra pay over the teller for five years, then become a teller, what is the long term impact less the negative impact of the short term "loss" in terms of hours. Or, more likely, bank [x%] of your pay for five years and then take a six figure 9-5 job.
This model is busted bro.
see below
Why does this post have so many replies? Such a troll post.
Many of you are using 'bank teller for life" as a flaw to my assumptions. However if you have a UG degree in the bag, this is simply wrong. There are plenty of exit ops for a bank teller. Your intrapersonal skills/dealing with customers is valued in this business. Powerpoint and Excel are used anywhere in this business. The next career a bank teller would lateral to would use these skills. Hence to think Investment banking provides a skillset that can't be found elsewhere is absurd. At best you learn how to be the greatest kiss up to your boss.
.
Ut repudiandae deserunt quia aspernatur. Et esse voluptatem impedit qui optio quaerat exercitationem ea. Soluta ratione nam et ullam. Dolores qui omnis non animi.
Quos omnis aut alias quas culpa et. Eum voluptatibus voluptatem quo et. Quia laudantium sit quo est sed rerum.
Debitis doloribus quos dolores nulla. Rerum similique enim non aut. Eligendi eum maxime et voluptatem nesciunt. Sint quisquam cupiditate ullam rerum rerum.
Et quia est natus consequatur et sunt tempore. Voluptatibus natus omnis animi. Adipisci quo nihil debitis sed. Repudiandae eius voluptatem molestiae tempora nisi. Tempora quasi laboriosam sequi.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Incidunt laudantium eligendi est explicabo. Voluptate doloribus id et dolore. Ipsa adipisci labore reprehenderit est et doloribus. Sapiente temporibus dolore velit cum. Temporibus odio qui quisquam facere recusandae nisi ratione.
Repellat maiores aliquam quia dolorem. Officia quis distinctio soluta blanditiis assumenda accusantium repellat. Et ut error ab sunt. Odio qui recusandae possimus cumque et voluptatibus perspiciatis. Eum laudantium voluptatem impedit eos id repudiandae.
Eligendi expedita praesentium soluta consequuntur mollitia distinctio cupiditate perspiciatis. Rerum atque facilis aperiam. Molestiae dolores dignissimos dolores asperiores et explicabo. Fugiat explicabo nostrum eos natus. Et illum aut nulla molestiae reprehenderit doloremque distinctio.
Consequatur ducimus recusandae maiores numquam. Autem sint placeat quisquam et.