I'm curious to see how everyone fared in terms of commercial/corporate banking bonuses this year. Especially interested to hear about people who are only 1-2 years out of school (however, please feel free to share numbers for all roles and levels)
Personally: Bulge bracket commercial bank, ~2 years in, bonus of ~8% as compared to base
Thanks guys!
commercial banking salaries and bonuses
Here is the most recent is a look at some of the most recent compenssation figures for corporate banking in 2018. We've even included a few different geographic regions and banks for a more complete picture of pay packages in commercial banking.
from certified user @deas7"
2nd year corporate banking analyst. Base of 73k with bonus of 17%. Rarely work over 50 hours per week.
from certified user @AspiringDegenerate"
In Corporate. Directors are making ~$200K+ base and bonus north of $200K. MD's are making $250-300K based on seniority and bonus north of $250K.
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2nd year corporate banking analyst. Base of 73k with bonus of 17%. Rarely work over 50 hours per week. Wondering if I should be pissed or not
Used to be at one of those firms and have a good friend who works at the other. Sounds like WF because BofA corporate credit is 60/70/80/100 and bonus is about ~20% at the analyst level.
WF corporate and commercial pay is basically in line but higher for corporate.
The only banks that are paying very a decent chunk more are JPM/Citi and I believe SunTrust (at the corporate level). For the first two banks you have only a few offices to chose from and STRH you are limited to the southeast.
I wouldn't be pissed what you are getting is well in line with the industry and you could always change shops if you want to earn more. Keep in mind you will be leading many more deals at BAML/JPM/WF than anywhere else so that experience is quite valuable and will translate to higher earnings down the road.
Great thread, glad to see more posts on this topic.
I've been at both the BB and large regional bank level. Bonus has ranged from low to mid 20s for the past few years.
At the Bb corporate banking level base would increase between 5-10k per year depending on bank and at the commercial level you can get a 10%+ bump when getting promotions or changing shop.
Not to hijack but thought I would use this opportunity to share a few observations I have with analysts and prospective monkeys on the industry.
Don't just follow the money, experience and name brand matters. - Some of the BB's will underpay you relative to peers (BAML / WF) however do not discount the experience. I have seen folks work at these shops for a short while and then jump ship to a regional bank for a 15-20k bump. However quality of experience is lower. - Vast majority of deals are lead by BBs which means you will have more deal flow and over time (mainly at the associate level) start getting involved in deal structuring. - BBs are going to be leading deals (taking about Left Lead, not passive JLA roles) more often than not so the bankers on those teams will get experience putting in place inaugural credit facilities, adjusting terms to market, negotiating with the client, and helping syndications field questions from other lenders - At a smaller bank, you will typically be participating in these deals and will not have much leverage to change deal structure. Your job will primarily involve financial analysis of the borrower but miss out on the structuring part. - Higher caliber professionalls work at BBs. There are certainly good people at the large regional and mid-level banks however there is a higher concentration of talent at the BBs. This means being surrounded by some of the best minds in the industry to learn from during your development years. When I moved from a BB to a smaller bank, I went from learning to teaching although I still have plenty to learn. - BBs are are full service platforms and have the most cross-sell with their clients so you will develop a better understanding of the various non-credit products in addition to capital markets. BBs committ more to transactions and are better positioned to win ancillary business than banks with smaller balance sheets so you will have a better opportunity to see how these products work for your clients. - BBs have a bigger investment banking presence than other banks which means more interaction and networking opportunity with various products and industry groups. - I personally came up at a Bb and then went to a smaller bank and most of the folks that I've encountered with the same years of experience had much less exposure to lead deals, modeling, structuring, etc. than I did which helped to set me apart.
Each bank is structured differently - Although the roles are fundamentally the same, each bank will have different role and promotion structure in addition to key responsibilities. - for instance certain banks structure their teams similar to IBD with analysts / associates / vp / director, etc. whereas others run a flatter structure such as underwriter / senior underwriter / portfolio manager. The flatter the structure, the more difficult it is to push down mundane tasks (annual reviews) as there is no one to push down to - In some banks the credit role gets less respect than in others. For instance, in certain banks, the underwriting side just puts together the credit memo and the coverage banker or RM will talk to the client / syndications, structure the deal, present the deal internally to credit committee. In other banks, credit is more like an IB product group that owns and runs the entire process soup to nuts and coverage bankers just bring in business and stay out of execution. - Smaller banks have less built out middle / back office which means front office gets stuck doing more administrative functions and systems are not as good. - When changing jobs don't just focus on the things you don't like about your current bank that you want to change but make sure you get a good understanding of how your new group is structured so you know what you are getting into.
Exit opportunities - Exit opportunities depend entirely on you and what you make of them - Contrary to what some people say on this site, exits can be rather broad. Given I had BB corporate banking experience, investment banking and capital markets has been a very realistic exit for me and I have had opportunities to make the move at both the analyst and associate level. - The key is to develop a good working relationship with groups that you work with (industry coverage, capital markets, syndication, M&A, etc) and put your best foot forward. In my interactions I've been able to demonstrate that I know the industry that I cover and that my work product is on par with that senior bankers are used to seeing from their junior staff. - Network with other groups and use your contacts to introduce you to others - For well respected junior bankers with a good internal network, it is quite feasible to move into almost any group within the bank. - External exits are typically other banks, b school for career changers, working for a client, or corporate finance jobs. Depending on your market (NYC) moving to a mezz fund or BDC is possible. PE/HF are obviously not traditional exits and you'd need to move into IBD first to have a chance.
For a commercial banking VP on the underwriting side comp isn't anything to write home about, not uncommon to have a base of 100-130 and 20-30% bonus. Changing banks every few years can help accelerate your pay trajectory. The hours are very light, 9-5/6 and there is good flexibility. Would expect most people to come under 180k all in.
On the sales side base is similar, low-mid 100s but much higher variable comp of 50%+. On the flip side, if you do not produce, you will be pushed out after some time.
Corporate really varies on the bank. I don't have any close connections at the Director+ level but not hard to extrapolate that the bank's paying associates 150-170k all in that Directors are making mid 200s if not higher. Wouldn't surprise me if banks such as BofA and WF which tend to pay less are paying 190-200.
My Corp banking numbers are anecdotal as I am not at that level but I can vouch for the commercial banking salaries. Sales side has much higher upside but you need to drive business. Arguably it's easier on the corporate side as there is a limited number of large corporates and they all have an established relationship with your bank, so you're taking over someone's clients. Commercial on the other hand you are expected to source new relationships which is difficult as every decent company is over banked already.
I'm 1 year in at a $40B regional in the midwest with very low COL. I work on some syndicated credits but mostly see ABL deals for companies with $40MM-500MM in revenue. The most fun I've had is working on acquisition financing for smaller companies and getting to sit down with clients.
First year signing bonus of $5k + $60k base + 10% bonus. Did not come through their training program but interviewed well and am getting to act as an officer on some of our smaller accounts. Seems like with a solid credit understanding and good people skills, the sky is the limit. Salary progression seems to really pick up after the first 3 years. There are two people 30 and under in my group who are lenders and easily pull $200k/year with relatively small portfolios.
I'm scared of getting pigeon-holed in commercial lending but my hours are awesome and I work with great people so I'm gonna stick it out a while.
Glad to see more threads like this, not a ton of information out there on the commercial side.