What is the best time to leave banking for Corp dev / strategy type role? I am currently a VP3 at BB. 9 years IB experience and A2A out of undergrad.
Trying to figure out at what point I could roughly match my base at banking at a chill corporate job. No way I can do this banking grind forever. That said, each year clipping another large bonus seems silly to leave now, feels like I am speeding up retirement every year I stay. Built up a nice little nest egg now. 31 and have like $1.3mm between myself and partner.
I’ve been hit up for Corp Dev Director / Sr. Director type roles before.
My current plan is to grind out until I’m a 3rd year Director. Is there a massive benefit to making the push to MD then leaving? I would have to work significantly harder as a Director in order to make MD.
Based on the most helpful WSO content, the decision to leave banking for a corporate development or strategy role depends on your personal goals, financial situation, and tolerance for the grind. Here are some key considerations:
Compensation Matching: Corporate development roles at the VP/Sr. Director level typically pay $500k-$800k, but this is often the ceiling for comp in these roles. If you're already earning $600k+ as a VP3 in banking, you might not see a significant pay increase unless you climb to CFO or similar roles in the corporate world. However, the work-life balance is significantly better in corporate roles.
Timing: Exiting as a VP3 is a common move for those looking to transition. Staying until Director or MD can increase your earnings and savings, but it also comes with a heavier workload and more responsibility. Many professionals find that the jump to MD requires a significant ramp-up in deal sourcing and client management, which may not align with your desire for a "chill" job.
Nest Egg Consideration: With $1.3mm saved at 31, you're in a strong financial position. Each additional year in banking accelerates your retirement savings, but it also delays your transition to a potentially more sustainable lifestyle. If you're prioritizing quality of life, leaving sooner rather than later might make sense.
Exit Opportunities: Corporate development roles at the Director/Sr. Director level are attainable for someone with your experience. However, pushing to MD in banking could open doors to higher-level corporate roles (e.g., CFO) or even better comp packages in the future. That said, the grind to MD is intense, and not everyone finds it worth the effort.
Market Conditions: The current job market and demand for corporate development professionals can also influence your decision. If you're receiving inbound interest for Director/Sr. Director roles now, it might be a good time to make the move.
Ultimately, the best time to leave banking is when the trade-off between comp, lifestyle, and career goals aligns with your priorities. If you're already feeling burnt out, waiting until Director or MD might not be worth the additional stress. However, if you're willing to endure a few more years of grind, the financial payoff could be substantial.
Sources: Corporate Development Manager - Q&A, Corporate Development Manager - Q&A, Exit as a VP because lost interest, Breakdown of Post-IB Exit Opportunities, Corporate Strategy vs Corporate Development
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Leaving as an MD gives you a much better chance to come into a Fortune 1000 firm at a VP/"head of" level assuming you are moving to the same sector.
Could be anecdotal but whilst in banking (US BB) I saw 4 Directors I knew well (some in my team, some in others) either take jobs or receive firm offers for "Head of" positions in areas such as Corp Dev, Strategy, Strategic Finance, etc. All of them moved within their sub-verticals - guess sector expertise matters at that level. All of them moved to large corporates given the cash comp differential at that level vs. startups. Fair to say most were weighing up likelihood of MD vs. the lifestyle of a corporate gig. Out of those, 3 made the jump, 1 stayed and pushed (successfully) for MD. For what it's worth, I only saw 1 VP leave for a similar-ish position, the other leavers left for other (typically smaller) banks / boutiques
Am a D2 at a T2 BB in a coverage group. I have been wondering this exact same thing.
Most of my job offers have been within my coverage sub-vertical as VP roles of various finance roles with most of them being corp dev offers I (also have received just general finance offers) over the past year or so. For the larger corporates, I am getting mostly director roles, and for the PE portco clients am getting more VP-titled roles where I'd head the corp dev team. The comp for the Fortune 500 places is not very competitive, but the hours seem significantly chiller at the expense of worst promotion outcomes and less pay (obviously still relatively great pay compared to those in my age range). Think the PE portco pay is pretty competitive based on the offers I have gotten but it also requires your portco to get a desired IRR number.
Personally, I am very close to MD and have been told there's a pathway for me in a year or two, so I am thinking of leaving as a junior MD ideally either with a C-Suite title for a PE portco or a VP title for a larger corp. Hope this is helpful for someone a year or two above you. I didn't try to look for any roles or think about outreach before the past year or so, so sadly do not have much from the VP exits POV.
Coverage roles are definitely preferred, and it is going to be much easier to exit as a senior to a corporate from one vs. a product rol,e except maybe an ECM senior for a company looking to IPO. All my job offers, and outreaches I have gotten aree within the universe of things I cover and especially for these PE portcos, these are from leadership teams I have interacted tons with. At the VP+ level, I think it all depends on your network at the end of the end.
Thank you very helpful!
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