I'm only in first year, so I don't know too much about the ibanking industry yet, but I've been told the hours are ridiculous (like 80-100 hrs each week).
Is this true? Is the typical ibanking job like 8-11pm a day or something ridiculous like that?
What is the average starting salary for students coming right out of undergraduate studies?
Thanks.
| +152 | Return Rates For Interns Are Falling? | 47 | 4h |
| +128 | UBS Americas IB: The Kids’ Table of Wall Street | 16 | 8h |
| +85 | I am a drunk MD AMA | 36 | 4h |
| +73 | London IB BB is a challenge | 41 | 3h |
| +61 | VP Lifestyle at Top BB Coverage Groups | 39 | 13h |
| +56 | An Outsider’s View of RX Banking Out of College | 6 | 1d |
| +48 | SharePoint makes IB hours HELL | 15 | 2d |
| +42 | momentum of Rx groups | 15 | 16h |
| +39 | Fired during interview | 8 | 20h |
| +31 | KISSED MY VP… HELP!!! | 8 | 1h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Yes it's true. Usually about 9am - midnight 5 days a week (that's 75 hours) then weekends as needed to finish your work (count on usually about 10 hours, 5 a day).
Now of course you can have less if it's a slow week, or more if you're on a few deals.
Average comp out of undergrad has been discussed a number of times, but it breaks down like this:
Base (guaranteed): ~$60,000 Bonus (based on performance, both individual and firm): anywhere between $40,000 and $90,000.
So, total compensation first year is usually between $100,000 and $150,000. These numbers (the bonus particularly) can drop significantly in bad times.
As a follow up:
The reason the hours in banking are bad (in my opinion) stems from the fact that it is a client service business. You have to be ready whenever the client needs you, no matter how ridiculous the demand. After all, they are paying you a few million in fees...
The bottom line is that in banking, your batting average is very low. That means you may have to pitch 10 companies before you get signed onto a deal. That means 9/10's of your work is wasted.
You need to take a lot of swings to get your deals.
Hmm, sounds interesting. I'd be willing to work hours like that for a few years, then perhaps focus on something else in the future - is this possible?
I imagine with a more senior position you'd be able to eventually cut the hours and get paid more...is this true?
What field are related to ibanking that many people either switch into, or switch from?
I know that as a youngster, I'm all about having lots of money while I'm young - so working long hours won't stop me from enjoying my job...but after a long time, that could change I imagine...
Thanks for your comment - I appreciate it.
DO NOT go into I-banking thinking that the money you make will offset the hours you put in. Yes, you can earn great pay your first years out of undergrad, but if you live in NYC (or any major city), you better believe that money will go fast. Youre not going to come out of undergrad, make 100K, and be super rich. Taxes, housing, food, etc. will take care of that. You live in NYC, you will not be more wealthy than your buddy who started an entry level job making 55K at a Fortune 500, living outside of a major city. You will however have the exit ops to bigger and better things down the road. PE, hedge funds, etc.
So before you dedicate yourself to pursuing I-banking make sure you are interested in the actual work (17 hours a day of excel), you dont mind blowing off your Friday night plans with friends/family/or significant other at the last minute for work over and over again (matter of fact you'll pretty much become non-existant to them), and finally you dont mind sleeping 4 hours a night 6 or so days a week, for 2-3 years.
Money should be the last thing on your mind right now
Completely agree with Mr.Green. Do something you enjoy.
When you start looking for jobs, you need to figure out where your priorities are at this point in your life.
A lot of people come out of undergrad with the idea that they don't mind essentially giving up the next 2-3 years of their lives to get the best work experience possible so they work for BB in NYC. Others decide they are more interested in having lot of free time when they are young so they go into corp. fin. or sales and trading. Others are looking for something in the middle and work for MM banks outside of NYC.
One option is not necessarily better than the other; it is just where your priorities lie.
Exercitationem excepturi aut nam. Enim mollitia fugit facilis vel nihil. Voluptas ipsa libero possimus cupiditate. Quae soluta assumenda provident sint iusto nam. Nemo et autem ipsam in quis.
Praesentium aut iste excepturi ea sed esse eos. Eum facilis beatae et libero suscipit impedit ea.
Et non hic voluptatibus sit. Ipsam modi dolore eum aliquam quidem error delectus sed. Assumenda natus corporis quibusdam expedita. Eos maiores praesentium officia voluptas nostrum consectetur.
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...