Prestige or Pay

From my understanding, most people pursue a career in investment banking for one of two reasons: prestige or compensation. I'd like to hear what you guys are in it for... be completely honest. Personally, I want to be a banker mainly for the prestige. Sure, the financial incentives and challenging projects are there, but I've always felt like I've had something to prove to my high-school peers who didn't believe in me. Especially coming from a non-target, climbing the high-finance ladder is far more exciting and fulfilling to me than money. 


I don't want to sound like the douche who wants to break into IB just so I can brag about it because that's not the case. I'm genuinely interested in the modeling, impact of work, large transactions, and fast-paced environment. It's all I think about... I build models for fun during my free time. And to me, the grueling hours of an IB analyst isn't much of a problem. Not like I have much of a social life anyway. 

 
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Prestige  does not exist the way you think it does. I worked at MBB with multiple friends at top banks. I can't remember a single time somebody was legit impressed about my job. The thing is once you work in certain areas you are also used to hang around certain circles. Tons of people around me work at MBB so you are not put on a podest. Only place where people think you are prestigious are students in college. Yet, I can't remember the last time I've hung out with college students.

People also overestimate how prestigious fancy white collar jobs are. Maybe we all came to this party late and the 80s/90s have been a lot wilder with much less corporate responsibility and tons of more perks. The reality hits you different when you see how GS people live in real life vs. how people would imagine it based on some 80s/90s movies. There is no cocaine, caviar, private jets whatever BS - its working late and ordering shitty food online and afterwards going back to a apartment that looks worse than what 90s movies portrayed average people to live in NYC.

Outside of that there are few of my old friends not in the banking/consulting circles who know too little about IB/consulting in order for it to be prestigious. 

If you want overarching "real" prestige (whatever that is) you need to have some outlier job that people find interesting ... i.e. pilot, astronaut .. maybe secret service (I dunno?) or being famous in general.

 

That's why startups are the way to go, because nothing beats C-suite positions, in terms of prestige (unless it's at a shitty no revenue firm lol).

 

Lol look at the people who care about prestige - usually college kids who still haven't gotten laid yet so they put prestige on a pedestal thinking having an incoming analyst job will make them less lame

 

people shit on prestige which is somewhat fair but i think kids my age don’t really understand its value. Yes, going to GS TMT isn’t gonna magically turn you from a virgin loser to a 6’2” duke lax star. It’s gonna turn you into a virgin loser with a pretty cool job. Nonetheless, the value is that people down the line will be more comfortable trusting you. It’s gonna be easier for the (articulate) Harvard, MS, APO, GSB guy to walk into any room and be listened to than nearly any other person — yes WITG hardos, even the Wharton, PJT RSSG, King Street guy.

Tldr: Prestige is just a currency that can be used to gain others’ trust in your future endeavors, nothing more, nothing less.

 

100% bro. The hardest pill to swallow is there are no panaceas in life. There’s no one thing or accomplishment that will immediately transform your life. Young guys always think if I just get this salary, or this car, or this company, then my life will be fantastic. You gotta chop up your life into different areas and make progress on each of the areas (that you care about) independently over 2-3 years. Life is about the process, it’s not about getting the pay or prestige you want, it’s about *becoming the type of person* that gets the things you want. Getting the outcome without the process is a hollow and likely temporary victory at best. 

If you’re an out of shape, skinny fat, socially awkward, weak, unkempt, broke, lazy, unambitious guy, and somehow a good job or a company falls on your lap, you know what you become? 

An out of shape, skinny fat, socially awkward, weak, unkempt, broke, lazy, unambitious guy except now with a salary or company that he’s very likely to lose because he didn’t truly earn it. Focus on becoming the type of person that commands a high pay or prestigious position and you will get there in due course.

 

Pay. Parents live in an area where homes are worth multiple millions. 

The largest / most expensive homes are small / mid sized business owners. Mix of blue collar businesses. 

One house in their neighborhood has a driveway full of cars that is worth well over $1M and the breadwinner in that family never went to college.

 

Lmao. We work so hard to get to the top of high finance (aside from PE and HF), and the general public thinks we’re financial planners. In reality, no one knows the struggle and competition to break in aside from people who are doing it and have done it. The value lies not only in the importance and impact of work, but the sheer level of difficulty to break in to the practically gate-kept industry. 

 

This is going to be a bit more on the corporate side, but ironically, companies like Disney and Deloitte have a reputation for underpaying because of the “brand name” you get on your resume. And back in the day (dating myself here), the Goldman discount was a real thing. Yeah, maybe for your first job or two prestige over pay is OK, but only because it might let you exit to an option with more pay. 

 

straight out of college the bank/firm you go to seems all important - peer chat was awful when I was at college 

After a few years, in the real world, I think we all realised you can be someone so prestigious doing monkey work, and its all a bunch of fakery.

I know many previous PMs who are now in risk and live a chill life.

But prestige can help when it comes to employability - 'Oh but he worked at here, lets pick him over another candidate'

 

Early-mid career: Prestige.

Mid-late career: Pay.

Maximize NPV not just cashflow in year 1.

 

I’m in my late 20s in nyc. All I’ll say when it comes to prestige and people outside of the industry is that they really don’t give a fuck at all and I think most of us by now know this. I got into this for money and my interest in the markets since I was little kid plain and simple. You pay me more and give me a better life I’ll work for pussy destroyer capital over ms 10/10. Also the people I enjoy in the industry that I call friends don’t make it their personality, i dogged my buddy for wearing his Patagonia with the firm name back at our local town bar during thanksgiving…disgusting.

And for the younger guys, the birds you’re chatting up outside of the industry really won’t know the difference between a top bucket mm analyst and a back office GS guy, they’ll assume the gs guy is cool off the brand…but other than those 30 seconds no one cares. But always better to start at a name brand spot to open doors unless you have a mentor or good role at a smaller place.

 

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