Is IB a meritocracy...

I'm an analyst, so definitely take my words with a grain of salt. 

My newly promoted VP got into banking a bit less than 3 years ago.

Because of his/her connections, the VP (then analyst) signed 2 IPO deals for the company. Bonus was hefty for the VP then analyst while miserable for the rest of the team. 

I understand the VP then analyst (got promoted to associate before becoming VP this year) generated revenue for the company, but other analysts & associates did all the hard work while that VP then analyst worked at most 50 hours a week. 

I came to realize that the skills required for a VP/D/MD is very different from the ones required for an analyst/associate, and even if you are a star analyst you are not necessarily a rainmaker. Meanwhile, even if you are a lousy analyst, you could still be a star MD.

Thoughts? 

4 Comments
 

That’s why all business is based on relationships. Anyone who can generate revenue will always enjoy all the benefits of career progression more so than others. It’s the same way that only a few can actually make it into the C-suite. If you were the one with the connections and closed those deals, whose pockets would you focus on?

 
Most Helpful

Hesitant to speak on this as an intern, but I think it's important not to conflate effort with value when assessing merit. If the VP (then analyst) generated significantly more revenue than other employees by taking on a role that's typically handled by mid/senior level employees, then I would say the promotions were fairly meritocratic. Even if the VP isn't exceptionally hardworking and generated that revenue through personal ties, it's in the firm's interest to retain profitable employees.  

 

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