Should I go back into a junior IBD role for comp?
For context, I started my career in investment banking and spent six years working my way up to Associate. I eventually left because I wanted a better work-life balance and moved into Corporate Development & Strategy at a large financial company, where I’m now a VP.
I’ve been here for three years. I am now 32 years old. My current comp is $120,000 base with a fixed 20% bonus.
The lifestyle is probably as good as it gets in finance. I generally work 9am–5pm, and when there’s no live project I can often arrive around 10am or leave at 3–4pm. I also work from home two days a week.
After years in banking, that flexibility has been incredible. I have time to go to the gym, see friends outside finance, date, pursue my own hobbies and generally have a life outside work.
Overall, I love the job. The problem is compensation progression.
I’ve effectively been told there won’t be a meaningful pay rise unless I’m promoted to Director. That could happen in another 1–2 years, which isn’t far away, but even then the package would only increase to around $140,000 base plus a 30% bonus.
Initially, I was fine with that. It’s still a six-figure salary and the work-life balance is exceptional. But over the past few years I’ve really started to feel the impact of inflation. Rent has risen significantly, buying a decent home in the city can now mean spending millions, and even a normal dinner date can easily cost $100–200.
Recently, an opportunity has come up for me to return to investment banking as a junior Associate.
The base would be around $130,000, so only a modest increase initially, but with significantly greater bonus potential and, more importantly, a much higher long-term earnings ceiling if I eventually make VP and beyond.. Plus I'd also have go back in as a junior associate so technically a demotion.
So I’m really unsure what to do.
Do I give up an unusually good lifestyle for a career path with materially higher earnings potential? Or stay in a role I genuinely enjoy, accept slower compensation growth, and recognise that I may never find another Corp Dev/Strategy job with this level of flexibility again?
Do you guys think I should be happy with my current role and that the pay is good already, am I being greedy for wanting more pay? Or do you agree for a 32 year old my pay and financial situtation is bad and I should aim for more.
Is this in NYC? Pay seems pretty shit unless this is LCOL Midwest/South city
Depends on what your current bonus is. Also what is your end goal? Would you plan to leave IB again after 3 more years?
you could probably find better paying corp dev roles
True, but most people who i've met in corp dev still work 9 to 7pm... most days I'm 9-5 and fairly often 10am-4pm so I feel that's worth considering
What do you value?? What do you want?? You are complaining about comp but seemingly unwilling to work more than 9-5 on your worst days.
Option 1: Stay
* Decent money
* Approx. 6hrs per day of free time to enjoy life
* Free weekends
* Moderate career growth
Option 2: Junior IB
* Mucho dinero
* 1hr to -2hrs per day of free time to enjoy life
* On call every weekend
The question I pose to you is: do you regret leaving when you did?
Then ask yourself: in ten years, will you regret going back? Or regret staying?
They are both really good questions, at the time I didn't regret leaving, I actually saved all bonuses over the 6 years from IBD and as much of my base salary as I could so when I quit to join this role, I was fairly comfortable.. but recently.. due to some personal reasons.. I had to spend it all so now I have no savings.. which is partly why I've realised living on this salary alone is a struggle.
In 10 years I think I could regret staying because as being 45 years old only earning ~$200k (likely what I imagine this role would pay in 10 years) could be a struggle to raise a family. But then if I went back into IBD, would I regret all the lost time I would have had whether it be something minor like having my coffee at 9.30am on a Monday sat on a bench outside the office taking in the air, taking a 1 hour lunch to go to the gym, or finishing at 4/5pm and being able to go see my for dinner etc. I'm not sure.
Your pay is hysterically bad and I'm confused why you took that offer / couldn't manage to get a better package amongst other offers. For reference I just took A2A promo but had 3 different Corp Dev Associate and Manager offers that were paying Bases of $150-165k with 40-50% bonuses.
Nevertheless that isn't your question, $130k as an associate is still super below street (unless it is like Gooner Capital with 3-4 ppl working there). Don't got back to IB for that and instead try to lateral into another mid-level Corp dev role in a LCOL-MCOL where you can get a substantial promotion and still have upside in a job that isn't demanding (when compared to IB). Im guessing you're working in like Des Moines, Iowa or some s#*t so this might require you moving to a stronger market like Chicago, Charlotte, Dallas, etc. where COL will be slightly higher but still far from LA / NYC craziness.
Best of luck regardless of which route you take.
Dude 100% try to leave this asap lol. I did 2 years IB one year PE and joined corporate development manager 1 with $175k base and $120k bonus for my first year
Wow really, I didn't realise corp dev can pay that, i thought mine was the average.. thanks for flagging this.
what time did you start and finish on average most days in corp dev? for that package I imagine you were still working quite late? How does it compare to my 9-5pm with fairly frequent 10am starts to 4pm finishes
Yes you are right with the high comp it is a tiny bit sweaty. I probably work 9am to 8pm on average, with sometimes nights til 1130pm but also nights I sign off at 4pm. Generally though will say hours are 55-60 a week.
holy moly ur company is taking you to the cleaners with that pay package.
Seems like you took the offer when you were out of job. I say this because 3 months before my layoff I had $450k (base+bonus) offer on my table but wasn’t keen but then got caught in a layoff and firms were offering me max $200-250k all in. It’s all about how much leverage you have.
good analysis, you are right I was out of a job.. I had resigned from my IBD job without any other job lined up, took a year to myself then began applying for corp dev roles. It was the only offer I got so yeah I didn't have any leverage.
But I did manage to save a decent amount from banking bonuses to allow me to feel comfortable to quit without anything lined up and take that year out.. although now I've spent all my savings and don't have any nest egg to make me feel comfortable on this salary alone.
Just jump back into IB and within months recruit for an exit with better salary.
What the fuck is that comp - that is like a corp dev junior associate/analyst comp with 1-2 years of experience. You can probably find a new role in corp dev and easily double your pay, with very similar hours.
You sound like a “natural slave” no offense
bump
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