The Pyramid
Okay so I have no interest in banking but still like to lurk the site. I have a general idea of the career path many of you discuss. summer internship, several years I banking, go back to MBA school, etc. This is an oversimplification I know. However, my interest is mostly from comparing the way pre-finance forums direct their members to the way pre-med forums direct members. If there is one thing I must say I Found in common it is that both forums are excessively critical of people's qualifications and constantly stress that the field is incredibly difficult/ not worth but are also unrealistic in that the forums themselves are devoid of any signs of failed individual
To give you a general idea the premed track would be quantified like this (very very rough): This is a per-year idea.
200,000 freshman a year enter college as premed.
42,000 a year apply to medical school
18,000 a year get into medical school
Now at this point the vast majority of these become doctors and there is a bell like distribution of income centered on 170K with a slight right tail. (The number of balling doctors is lower than you think)
So our pyramid is like the picture shown.
Now I was wondering what the finance income distribution looked like. (Quantitatively please)
I understand exit ops and layoffs make it a more complex but you guys are used to models and bottles so I assume you will do great.
Its almost not comparable, we would need to make some sort of flow chart. Whereas med school students become doctors and stay doctors, financiers jump around, make work-life balance trades, and experience exponentially increasing pay with seniority. Not to mention the huge gaps in pay between a top PE partner and a good private banker.
Moreover, hardly anybody even knows what a banker freshman year. Even senior year, banking might not be the first choice for many. I have been shocked by the number of guys who just fell into their jobs.
Then you to account for MBAs, and their affect on the salary distribution.
In short, it is almost impossible to make a similar statement.
If you just want a general pay distribution all of finance, you probably have a strongly right-skewed graph with a very long tail. Maybe middle 50% would 80k-130k all in. This is including financial analysts at f500, commercial/private bankers, etc. Of course, the average 1st year analyst probably makes around 130k. This is why it is so hard to generalize.
I guess what I Was looking for is the number of individuals entering finance, the number that leave all together, and how much those who stay in the vague field of "finance type jobs" make.
Edited above response, but I have no idea how many enter finance as a whole straight out of college. People can drift in and out. Blankfein was a corporate lawyer, and Gorman was a consultant.
Some might leave and come back after a MBA, while others might first experience finance in a MBA.
The pay scale is vastly different. Doctor side of things it looks like this, post residency 170k to prob around 2.5MM. Finance side its more like 35K to 2 billion. It is amost impossible to map the pay in finance because it ecompases such a large amount of different jobs at vastly different levels.
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