Think I've seen one of these before but in case helpful for anyone contemplating a career in IB, here is my pay history after 10 years in IB:
Tier 2 BB Product Group
AN1 (starting July 2013) - 140K
AN2 - 165K
AN3 - 180K
AN3 - ASO Stub - 40K
ASO1 (starting Jan 2017) - 330K
ASO2 - 425K
ASO3 - 475K
Tier 1 BB Product Group
VP1 - 615K
VP2 - 645K
VP3 - 700K
This is helpful. Are you still in banking and looking to stay for longer term? How much were you able to save
Still around. With no real plans to leave unless it becomes clear MD isn’t going to happen. Across everything (tax advantaged and taxable accounts, stock and otherwise) I’m sitting around $1.3M. I don’t have a particularly active approach to personal finances.
Keep LARPing, my friend. You can be whoever you want to be on the internet. Today I am a pencil.
Apparently, not a very well paid one..
.
Really helpful to get a decade of historical data from someone in the industry. How did you last so long despite all the frustration and competition associated with the job? Did you ever consider any of the typical exit opps?
These numbers are BS. This is likely some intern LARPing as a banker.
People at bulge brackets don't get paid this much, even assuming this is some consistent top of the top bucket performer and his product group is M&A
Here is one of the big tells -- look at the year represented by peak COVID (2021 bonus cycle, which would be VP2 for this "VP"), when everyone's bonus skyrocketed. This guy's comp was essentially flat. Yep, sure makes a lot of sense. And also look at the following year.
Not really sure what the contention is.. Moved over on a guarantee in 2020 (as pretty much everyone does) which disguised the bump to a pretty good 2021. Was staffer last year which (in our group at least) generally forces you into top bucket. But, do what you gotta do man
I was essentially a decade ahead of the OP, and I thought the numbers looked low TBH. How times change…
Careful Sir - they'll turn on you next..
DM me? Or stay anonymous..
Here’s my two years:
ASO stub: (210k) 175k + 35k bonus (2021)
ASO1: (265k) 175k + 85k bonus (2022)
2022 bonus as in paid out in 2023? 85k was what AN1s were getting at some places last summer so assuming this summer is going to be brutal.
I have a feeling that this bonus cycle is going to be very rough.
Do you think it was worth it? Currently considering if IB grind is worth it and after seeing these numbers it seems marginal to other exit ops with much better lifestyle / more interesting work and slightly less pay.
What exit opps are paying anywhere near 400k+?
Not 400k but 300k yes. Go look at the PE forum
Agree numbers look wayyy too smooth esp at VP. My VP1 year in 2021 was higher than my VP2 pay in 2022; that is the same with almost everyone I know other than people at Citi.
I'm not sure why, but I've taken the bait so will have one more go.
Guarantee in 2020, solid pay in 2021, staffer in 2022. And I hate to break it to this group, but there were plenty of VP3s on the street getting $700K+ at BBs last year.
More generally, bit depressing that my first post on this forum was basically just an invitation for open trolling..
no hate here dude, if true then congrats. certainly not a median outcome
What’s the point of making up a post like this
Exactly...
I'm a little confused why people are expressing doubt at these numbers based on them being too high, among other things. 700k for someone ~30 doesn't seem that great compared to if OP had switched to PE or a HF?
BB Product groups do not pay well compared to coverage. They tend to flatten out at VP and beyond.
so - hearing a VP1/2 at a BB with $275k base and $400k bonus isn’t very likely given the other datapoints on here.
VPs at BBs (product) generally don’t exceed 100% of base as a bonus.
no BB bank has a strong 10 years that would lead me to believe a product banker has smooth, linear comp over the past 10 years.
Numbers are more realistic for Moelis, etc.
Honestly - and no disrespect here - I've given up on this thread. I'll let the internet decide what to do with it.
I don't know about HF although I imagine at a lot of SM you'd have made nothing last year. But in PE 700k cash at 30 (not counting any accruing carry etc) is a very good outcome. Probably a top decile or better outcome.
not sure how much money you think you can make just purely cash without taking any risk ??
Oh, I kind of assumed IBers could make at least that much given the hours they work, I'll be making >500k as a new grad in prop trading so seems fair you'd hit that in IB like 5 years in.
.
I’m 9 years into my career after IB / PE / HF and my numbers look pretty similar. I don’t want to share exact details of when I switched firms and when bonuses were stubbed vs. full year but general comp progression below (made +/- $5-10k adjustments to not completely give away exact comp). I did IB -> PE -> HF and if all goes well, my comp should exponentially jump in years 9 onwards. Past couple of years were more or less base lines pay as I ramped up in a more market facing role. The real differentiation between IB, PE, and HF compensation starts becoming apparently in years 8 onwards (basically from late 20s into your 30s). I made jump as I thought PE was going to be too tough from an hours perspective and thought of steady income in your 40s wasn’t worth it. I’d rather take a chance to do something I enjoy and bet on a firm that could reward me earlier on.
Was this a jump to PE in year 3? And was comp all cash?
Yes and I’ve had no deferred / stock comp for last 8 years.
Your pay never dipped during the lean last year? What product are you?
Benefits of being in PE. Your pay as a junior investment professional is standardized and generally go up every year.
Fake numbers
Posted this elsewhere as well, but wanted to add here in case helpful for context. All years are in IB, and it starts straight out of undergrad.
A1: $165k: $85k base + $70k bonus + $10k signing bonus
A2: $190k: $90k base + $100k bonus
A2.5: $105k: $47.5k + $57.5k (6 months)
Assoc1: $290k: 150k + $140k
Assoc2: $437.5k: $187.5k (base increase mid-year) + $250k
Assoc3 / VP1: $460k: $237.5k + $220K (promotion mid-year)
VP1 / VP2: ~$500k: $250k + TBD (no idea what this year will do)
BB or boutique? If you don’t mind sharing
mm
First off these numbers literally could have been the comp progression of a strong performer on my team, so entirely realistic.
second, if you want to see the longer term over 22.5 years, here goes
22.5 years in IB
Analyst (1-3): average of 115k. NY
Associate (3-6.5): average of 375k. London
VP (6.5 to 9.5): average of 700k. London and HK
D (9.5 to 13.5): average of 800k. NY
Regular MD: (13.5 to 17.5): average of 2mm. London and NY
Global Head (17.5 to 22.5): average of 5mm NY
goes to show what a long slog IB can be
Damn, absolute beast
Would you call a Global Head a "beast" to his face? What a cringey thing to say...
Out of curiosity, how did the job/responisbilities/day-to-day change when you went from MD -> Group Head?
Heavily.
As a regular way MD, I was responsible for my own production and in practice (but not formally) a relatively small group of analysts / associates / VPs who worked for me. All I focused on was revenues and had no ability to set comp.
As a group head on the revenue side, I am responsible for my own production but also the production of other MDs and overall strategy about what business we target and how we execute it. I have a number of people who formally report to me in various offices and have responsibility for their compensation and career development. Ultimately, I have to think about all aspects of the business, not just revenues, and spend a lot of time managing people (while still being the largest revenue producer in my group). I also have a much more formal compliance and control function role as a P&L head.
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