Unless your family is in poverty or you are in a mountain of debt that needs to be paid back ASAP, you're looking at this totally the wrong way. The difference between 150 175 after taxes in NY for example is absolutely dog shit nothing. I mean piss nothing. And that's assuming you're top bucket at both places which requires incremental more hours of work at dog shit after tax hourly wages. 

From the above, you can tell most people don't become IB analysts to make a lot of money. You won't. 150k in NY is below middle class. Analysts live 3 deep in a fuckin apartment somewhere in brooklyn prolly. 

I'm sorry I'm being harsh but I can tell you are just looking at this the wrong way. Figure out which group you click with the most, which gives you an enormous amount of edge from social capital standpoint, and then which group tends to do more interesting deals. That's all that matters as an analyst.

And b4 anyone calls me a fuckin asshole, I'll answer your question too. MM's like WB in chicago pay at or above street (in historical years, I've left IB for 2 years so I have no idea what it is this year) or MM's that have a split off bonus pool (think JEF Houston or SF tech). 

 

It's going to be somewhere between 150 and 175. I can't tell you teh exact figures but it's all around there. If you want EB money you need to go to EB's but again even the pay there is only marginally what a 20 grand difference for first year analysts? For what? If you told me you want an EB for the exit ops  and deal exposure then ok ding ding ding you hit the jackpot, that's what i wanna hear. the rest again is peanuts. Kylie jenner made more in an hour then the analyst will make in a year lmao, it's sad i know

But since I'm on this tangent and I have some time in between meetings this AM, i'm gonna drop a jewel for you. As you get older (and I'm prolly no more than 5-6 years older than you), you're gonna realize W2 income is complete trash. Garbage, peanuts, potato chips trash. This is the income your MD's and senior partners will be making when we talking "all in cash comp". Some will ahve it in deferred stock but even then that's trash, let me tell you why.

The country is headed in a way where there's gonna be higher taxation. This taxation is easiest to tax at the w2 ordinary income level. You prolly didn't even know htis, CA has a 0.5% tax on all income > 1 million for mental health purposes. Did you even know that existed? Did you know that payroll tax will kick in below 137 and above 400 should biden win + dems sweep the house and seante like lebron shoulda swept miami (jk i fuckin hate lebron)? Ok what does that mean?

That means your MD pulling 1 mil a year can kiss fuckin 50% of that goodbye once CA hits him with the 14 % top rate bracket and feds get em for anothe 39.6 and then he gets slammed off the top rope with another 7% payroll from 400-1 mil. 

If you wonder why MD's never leave IB unless they get booted kicked out or just suck it's cuz they have lifestyle creep. They appear to make a shit ton but in reality most of it goes to their ex wives, private school for the kids, and most of allllll IRS.

Sorry for the rant. I partially did answer your question tho and this was cathartic. I need to get back to filing my 2018 tax amendments.

 

Oh and sorry I knew there was a reason i started ranting. You were asking bout analyst pay. I get it, i was one a while ago. I'm painting you the picture of you as an anlayst's boss's boss's boss's boss.

Oh and b4 someone comes in and say "oh but cap gains haha! I'll go to buy side and get that 20% carry"... just look at the fuckin ink on the canvas dawg. The wealth tax conversation is a thing.. it's fucking stupid but it's a thing. Cap gains at ordinary income levels is already literlaly in biden's proposal and he's supposed to be a moderate. It's the way we're heading

Back in the 90's maybe when nobody on mainstreet  knew pE prof's were killin it with 20% tax rates on their carry you could get away with it. A society as it gets more progressive (i'm a conservaitve economically...can u tell lol), is gonna catch on. 

That carry is gonna be taxed at ordinary income level. if you're KKR Menlo partner, quiver in your boots for sure (or maybe there will be another loop hole?... if anyone knows it lmk ;))  

 
Most Helpful

You make some very good points, but just imagine complaining about being paid $150K as a pimple faced fresh out of college new grad. Much more than 99% roles out there for kids and many people would kill to get paid that. Are you rolling in dough living in a PH suite? No. Is it better than the alternative of making $80K in a 9-5? In my opinion yes, but can see the argument amount the trade-off of pay/hours and what you actually get paid on an hourly basis if you break it down. But if you think it's tough to make it in NYC making $150K as the "middle class" as a 22 year old, then no way you take that 9-5 corporate gig making $80K.

Also buddy welcome to the real world. Guess what 99% people work until they're like 60 and can retire. Will IB make you rich beyond your wildest it dreams? No of course not you'll never make the big bucks as an employee. Is it better than and higher paying than a lot of other alternatives? Yes. If you want to make f you money then you need to start a company, grow it, sell it and cash in. Until you do that, we're all going to be working away paying for the wife, kids, private school, vacations, house, etc. Life ain't cheap.

Definitely agree on everything about taxes and the current direction we're heading in. Have to slap myself in the face every time someone says "vote blue or don't vote at all". Great, you'll get Trump out of office in exchange for big brother to only take more out of all our pockets for government programs that will only put us deeper into debt.

Of course when comparing offers should always be putting emphasis on group fit, growth opportunities, momentum of the group, recent mandates, interesting deals, industry you like or product you like, etc. rather than that extra $15K or whatever as an analyst which you're right in NYC or other high tax places will end up being nothing

 

Bankerconsu

Oh and sorry I knew there was a reason i started ranting. You were asking bout analyst pay. I get it, i was one a while ago. I'm painting you the picture of you as an anlayst's boss's boss's boss's boss.

Oh and b4 someone comes in and say "oh but cap gains haha! I'll go to buy side and get that 20% carry"... just look at the fuckin ink on the canvas dawg. The wealth tax conversation is a thing.. it's fucking stupid but it's a thing. Cap gains at ordinary income levels is already literlaly in biden's proposal and he's supposed to be a moderate. It's the way we're heading

Back in the 90's maybe when nobody on mainstreet  knew pE prof's were killin it with 20% tax rates on their carry you could get away with it. A society as it gets more progressive (i'm a conservaitve economically...can u tell lol), is gonna catch on. 

That carry is gonna be taxed at ordinary income level. if you're KKR Menlo partner, quiver in your boots for sure (or maybe there will be another loop hole?... if anyone knows it lmk ;))  

Might be the smartest guy on WSO.

We all fukked bois!

 

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