So i've been reading a lot of different posts talking about how overall comp in Canadian banking is really low compared to American BB banks. But they also work the same 90 hour work week.
What is comp range for associates VPs, Directors and Managing Directors at the Big 5?
Also a few people have stated that only around 15-20 get IB jobs in Canada every year.
Can anyone confirm if this is true and if it is, why do people in Canada aim for banking when theres other jobs that pay just as well for less hours like engineering and tech jobs.
I think the reason comp might be perceived as lower is for two primary reasons:
1) CAD to USD is already a huge jump in pay. I think getting the same dollar pay in one country vs the other is already like a 20% increase in salary.
2) Canada is a much smaller market (entire country has about the same population as California), and investment banking makes up a significantly smaller percentage of the big 5s revenue than say GS or JPM. Because of this teams are smaller than at other similarly sized banks in the states, in combination with many companies moving south in search of capital and talent, the size of clients and therefore deals is smaller, meaning less fees for the bank overall. All of this together means that bonuses and other supplemental pay are likely to be lower overall than American bankers, because you're closing fewer and smaller deals.
The reason that despite this there is still such a draw to work in Canada is because there are serious benefits to being close to home, friends, and family. It can be hard to make new relationships in a new city especially when you're working as much as a banker and so some people find Toronto a more attractive destination than say NY. With regards to why not other jobs? Some people really love finance, or see it as an opportunity to exit into another area of passion.
That's my understanding of it, and some of the factors I considered when deciding whether I wanted to work in the states or Canada, and I think it's important that you understand your motivations and personal needs in order to make the best choice for yourself.
Thanks for the honest answer. Would you know what the comp look like for associates and on for big 5 banks?
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