What percent of people on wall street eventually get promoted to managing director?
I heard it is one-fifth but I'm not sure.
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That's a potentially a misconceived question.
If I said "one in ten" and you then thought "I have a 10% chance", you'd be thinking about it very wrong.
Why not ask "what percentage of people with 3 b's in their name make MD"?
In addition to answer above, i also think one fifth is actually too high based on what i have heard
In simplistic terms, think about number of analysts in a starting class vs number of MDs at a given bank
Yeah, but even then the numbers are still skewed. Many analysts start looking for a PE gig on day one, while a very small amount actually have ambitions to stay with their firm long enough to think about becoming an MD.
I think if you're already an analyst, then your chances of getting promoted to MD someday are pretty good if that's what you're actually intent on. Lots of firms talk about retaining talent so it's very doable as long as you're enough of an all-star to climb up as an associate and VP. Keep in mind that it takes an insane amount of time to get there though, and there are VPs who never make it.
Fair enough on your first point.
But I thought the question was asking what percentage ultimately become MDs, not what percentage of those who want to stay and become MDs actually do.
Its fairly "easy" make your way up to director as long as you don't fuck up and keep a smile on your face as you eat shit sandwiches.
I have seen and know of dozens of directors get fired. That's the big jump. And past that jump you have guys who can perform ($1mm) to guys who kill it ($15+mm).
Its not some easy linear path.
I think you're off by a significant factor. The difference is there's a new class of analysts that come in every year whereas MDs stay in their posts for a long time. At my BB coverage group we've hired 1 new MD (MD lateral from another BB) in the past 5 years, and there have been no internal promotes.
There is a significant jump between Director and MD because in one role you are still helping someone else manage their clients whereas in the other you own the clients. If you're a Director then most of your relationships will be the same ones the MD you work for owns. Thus, it's really hard to add much incremental value if you are promoted to MD. That's why making it to MD is so hard because you need to own your own clients.
So maybe the right estimation would be 1/(Number of analyst classes before 1 MD change happens*Size of analyst classes). Captures the number of analysts that come through the door before a new MD takes over
I'd say about one in three VPs who want to make MD make it over time.
And there is a big differential amongst MDs. Bigger than any other level. There are people who make a 1mm a year and those who make 15mm a year.
What percentage at BB actually reach Managing Director or Group Head (Originally Posted: 01/05/2007)
What percentage of people at BB investment banks reach the Managing Director or Group Head level.
I realize that once you hit these levels you can live the millionaire lifestyle quite easily considering you make anywhere from $1 million to $4 million per year. With the average coming in at around $1.8 - $3 million annually at the BBs/
I know its tough, but just wanted to know the chances of getting to that position.
Do the hours ever get better in IBD as a MD or VP?
if you want to stick around and slave away, its not that hard. most people just get sick of it along the way.
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