I’m looking into Corp Dev exits post-IB to situate myself in a low COL city and settle down. It seems like a corp dev exit from IB tends to receive a lot of pushback, so I was curious as to what the substantive disadvantages of a corp dev exit could be.
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high variance within corp dev, less "spread" or "typical" experience makes it risky or odd for most to pursue.
some corp dev roles pay like shit. others have hours that are >60 and not worth the paycut given the lifestyle improvement is minimal.
Del
Honestly a lot of the people shitting on corp dev are interns or first years who think anyone who doesn't go to PE is insane. They care only about comp and prestige. Obviously once you work 80+ hour weeks for a few years, getting your life back starts to matter a lot more than the next dollar.
Agree with other comments - be careful to diligence things carefully. Corp dev roles are very different from company to company. Your comp will probably be lower in a low COL city but also look at other parts of it - make sure you like the industry and would be willing to go work in that business if you want an exit.
All of my friends that actually exited to corp dev are exceedingly happy with their decision and seem to be loving life. It sounds objectively better in every way except money. As in they claim more interesting work, more responsibility and ownership in a good way, way lower hours, better people to work with, way less stress, more fun, more flexibility, still very happy with pay, etc, etc.
The hate comes because it’s so hard to justify the upfront paper loss in compensation. For example, a good analyst 2-3 at a good shop might make $210k. He can either take an IB Associate promotion and make $300k a year, or he can go to corp dev associate-type position and make $145k a year. Not only is corp dev 50% less than his alternative option, it’s 30% less than he makes now. Humans hate decline. It’s hardwired. Progress brings us joy, regression brings us depression. What’s worse is even Becky and Bradley that took easy jobs out of college working 35-40 hours a week are gonna make $145k, just a couple years later than our IB analyst example. Or maybe even five years later, but that’s not the point, the point is corp dev compensation is reachable without IB; without the sacrifice and pain that we go through.
That’s what makes just the initial jump to corp dev so difficult. It takes you out of the stratosphere of compensation and firmly back to earth. I think the vast majority of college graduates will never make $300k in their lifetime or see $100k+ bonuses in single paychecks, whereas a great many WILL make $150k sooner or later. Making a few hundred grand is hard to comprehend, making $145k is not. You lose the (delusional yet comforting) feeling of false superiority and self worth that comes with making stupid money. That’s the true cost of the corp dev exit. For those that are able to work through that, it sounds like a fantastic career from everything I’ve heard.
The loss of perceived “high” compensation and loss of identity as “highly paid” is the pain point for this exit. I could be biased but I think in 2024, $150k and below is realistic sounding to most people. Nobody is gonna be super impressed or perplexed, or be like “wow he makes $150k, that makes total sense to sacrifice 2 years of your life and happiness and health for! I wish I was him!” $300k and above is the starting point where people are kind of like wtf is going on, didn’t realize that type of money was being made, you must be rich. The next “mental” jump comes at like 1mm probably.
couldn't have hit home harder +1
Best thing about doing IB then exiting to a chiller corp fin job is you will know a lot of the technicals and excel and ppt better than your peers, will always have your analyst stint on your resume, and if you play your cards right you can have a down payment on a decent house saved up at the end of it. Those three things will be a huge setup for success.
Do you think it’s valuable to jump to Corp dev from a pe associate stint vs straight from ib analyst?
This is incredibly accurate
as an AS1 who told myself I'd never stay past analyst and had no interest in PE, this is way too real...
Great points, though I do want to add one thing
Although not in corp dev, I'm in corp Strat (MBB --> corp strat is somewhat analogous to IB --> corp dev). I took a ~150k/yr F500 corp Strat job with slightly less than 2 years of MBB experience. Your point about the 'normal Becky/Bradley out of college working 35-40 hours/week will eventually make that' is somewhat true, but people do overestimate how fast their comp will go up. While I'm 24 making 150k, a lot of people who started at 'regular' corporate jobs won't hit that until much later in their 20s (or even 30s). I'm literally the youngest of my peer group. I know people who are ~35 who make less than I do. Some of it is because of ambition (You'll be surprised how many people at a F500 are content with making 100k), but being on the 'intense' track like IB/MBB definitely helps you get ahead.
I think the original comment is significantly overestimating how many regular people easily get to 150k, let alone in mid-20s.
This is spot on. If you don't have a MBB / IB bakground, hitting ~150K through Corporate America promotions / job-hopping is pretty tough until your late 20s. Exception would be ~3 years ago when I've seen people raise their pay 30-50% job hopping in 2021.
Incredible perspective
Recognize I’m likely a unicorn scenario, but will give a data point for myself and boss. We work for a highly acquisitive PE-backed rollup (closed 10 deals in my first 18 months). My boss left banking at the Director/SVP level and is now the equivalent of a young MD. His base / bonus isn’t much as stated above (around $300-400k). I left in the middle of my second year in banking but had a couple years experience in adjacent industries before that, and he followed the new banking base for my comp (currently at $150k and my cash bonus this past year was $50k). However, equity offers substantial asymmetric upside. We work for the best returning asset in fund history, so this isn’t the norm, but his equity is already worth well into the 8 figures after less than 5 years on the job, my current upside is in the 7 figures at exit (would be within 4 years on the job). If you smooth it out, my total comp is well over $500k at the equivalent of a PE associate level. Couldn’t be happier where I am and recommend corp dev if you find the right seat, but it can definitely be how others explain it if you go to a large F500 type company.
What are your hours like? I would think you have to be working closer to banking hours in a PE rollup than at a mature public company, right? Sounds like an insane gig though, congrats on your success.
People in corpdev can make 300k though it just takes 5 years or so in corpdev. You can still be in corpdev, work less than 40 hours and be making 300k ish by the time you’re in your 30s. Go to corpdev after 2 years in IB (so you’ll be 25), by the time you’re 30-35 you’ll be making 300k, working 40 Hours and you’ll be able to spend time with your kids and family. By the time you’re 50, you can be making 400k-700k, even 1MM+ if you’re at a FAANG type shop and SVP. 300k is more than enough to live well on with good WLB. Also this poster is completely false when he says the average person will make 150k sooner or later. If you look at the statistics, less than 1% of people will be making 150k at 30, so making 150k in Corp dev at 25 is exceedingly high. Poster needs to get out of his bubble and get some perspective, because majority of corporate people will never reach 150k at any age, and if they do it may not be until 50s or later.
i wanna know which analyst regardless of level is pulling over $200k a year in IB...
I know tons of analysts that have made well over $200,000 in their second and third years… just be at a bank that pays and be good at your job, it’s not rocket science.
You nailed it. These were the exact emotions I went through when I took a Corp Dev role
Extra embarrassing was I quit IB bc I was burnt out and was looking for 6 months. It didn't feel good to take a massive pay cut to take a corp dev role that wasn't even on my radar. It took me a few years to get back to what I was making before
The work is interesting but you don't get the same camaraderie as being a junior banker. Most people just wanna work 9-5 and go home. All good but very different from hyper-driven culture as an IB analyst
I think CD is a great exit if you want to build more of a strategic skillset. With the extra hours, it also allows you to build something on the side if that's what you're into (just about impossible to do in IB/PE)
All in, it's a great exit but just go into it eyes wide open
Disagree it's "hated on"
Lots of interns and wannabe hardos on here, bit that's par for the course.
As others have said - do your DD on the company itself.
Private PE Portco often better than public for equity earnings but salary often slightly smaller. If I was going corp dev I'd focus on a Series C or a PE Portco where you do a roll up strategy.
IB and top PE will akways gave tough hours. Its a sacrifice you make for compensation well above norm levels.
It all depends on the person you're talking to. IB hardos absolutely hate on it. But nobody's hating on Netflix or Paramount CD working on the Warner Bros deal
Because there are some absolutely horrible corporate settings to work in and IMO a ton of dumb people who’ve never done a deal bossing you around in tandem with crap pay. I’ve been trying to leave and can’t go anywhere except banking or more corp dev in my case.
My company needed a senior person in corp dev and also brought in a FP&A person who is absolutely clueless and it’s a nightmare, but maybe that’s all specific to this situation.
BUT I’ve noticed quite a bit of variance in what different companies pay - so experiences may vary but I regret it (or I wish I had come in after PE at
Least).
This is the most accurate comment on this thread.
The post above about compensation was spot on, so I'll focus some additional thoughts on other elements, having interacted with many corp dev folks over the years:
Did 2 years in IB -> 2 years in CD -> Now in PE.
While I was working in IB there was a very clear path to making a lot of money. In my CD role the path vanished. Directors and VPs were topping out around $300k and they were in their 40s.
Once I realized the mistake I made I did everything possible to move back to either IB or PE.
Unless you are joining a PE backed business doing multiple deals a year making the jump to CD is a mistake for 90% of the people on this forum.
In you experience were there any cons of that switch back into PE? Did you feel like you sacrificed too much WLB for comp or has it been satisfying regardless
Very happy to be back in PE. In my CD role, I was bored. Going from IB where deadlines were usually same or next day to the corporate world where you were lucky if people got things done in a week was eye opening.
At first, I loved the reprieve of low hours and limited stress but I could only do so much surfing the web / pretending to work.
While the move back to PE came with more hours, tighter deadlines and more stress. I appreciate the opportunity so much more because I know what the alternative is.
Is PE the end goal for you? Do you feel like you would ever transition back to Corp dev?
I am a VP now at my current firm and firmly in the carry pool so going to ride this out as long as possible.
This sounds like a you problem, not a 90% of people problem.
Like anything, the onus is on the job seeker to conduct diligence and join a company where you believe there’s strong upside.
Wouldn’t that mean that some CD VPs are making just as much as their counterpoints in IB? Is a CD VP equivalent a VP or D in IB?
Spot on here - $300K is more Director-level compensation. VP would think somewhere between $500K - $700K all in (base, bonus, equity). Could easily see over $1M+ at places like FAANG
SB’d - Am in a similar position to you - did 2 years of IB at an EB -> wrapping up 2 years CD. Think your take and sentiment on CD is spot on and I’m also considering the move to PE. Any chance I can PM you to learn more about your transition?
deleted.
Man this is so depressing. Maybe it’s just the cynical nature of WSO, but the options seem to be i) get paid in IB but work 80+ hours/week hating your existence or ii) chill in corpdev but be bored out of your mind while getting paid peanuts with no upward trajectory.
There has to be some jobs in the middle, where people can work 50-60 hour weeks and make in the 300-400k range. Corporate banking / ER / asset management?
Direct lending / private credit
Where are you seeing that anyone is saying you’d be bored in CD…?
(1) You do the same work as you do in PE but with less pay.
(2) There is huge variance in the work you do. Some CD teams are basically just M&A teams. Some are heavy in M&A and do a lot of strategy work. And some are pure strategy work.
It depends mostly on company size and industry, while the specific company strategy also is a factor here.
And most of the roles are “hybrid” CD roles which feature mostly “strategy” work AKA FP&A and Accounting work working alongside middle managers who leave work at 2 PM to pick up their kids, never answer emails and make 30-50%+ more than you because theyve been there 15 years
Because of prestige. Corp dev is less prestigious because it’s essentially a middle-back office role in a non-investing, non banking, non-finance ordinary company
Ignore title, I did two years in IB and now work in corp dev. and will make -250k all-in and work substantially less hours. These types of roles exist (although they are not abundant) often within niche, private companies. Most people don’t explore since they are unwilling to leave the prestige behind and care too much what others think
Same here. Private, acquisitive company in niche strategy and started at ~$250 all in. The right corp dev roles pay well and are interesting, but vetting these and not jumping on the first offer for the sake of getting out of IB is crucial.
How do you vet the opportunity? I'm interviewing around and don't want to make a mistake
As others noted, it’s highly variable. Be picky on sector, company, and team. But if you get yourself into a good one, over the long term it can be a great opportunity. Corp Dev “exits” are a thing. Many companies view Corp Dev as a way to bring in strong young talent, develop them over a handful of years, then spin them out to operating leadership roles. As an example, it is not uncommon that running an important deal in Corp Dev can translate into a sr leadership role in the acquired business on a post-close basis. Or in mid market sponsor-backed roll-ups, I’ve seen multiple SVPs of BD/CDOs move into CEO roles — at their own company, elsewhere in the sponsor’s portfolio, or they get recruited away by another sponsor.
If you aspire to having P&L responsibility running a line of business or ultimately becoming a CFO or CEO in a company that prioritizes M&A growth strategies, Corp Dev is a great early/mid career path to take.
As for comp, yes expect a cut out of the gate but getting to mid to high 6 figures total comp is very achievable. You won’t get there being a mid-level deal monkey in WLB cruise control — but there are countless corporate VPs making that much by age 40, pedigreed or not. It’s a function of delivering results and navigating organizational politics well. Corp Dev gets you in the room with decision makers early on, and it’s up to the individual to leverage that opportunity.
Finally, let’s be honest, the vast majority of junior/mid-level bankers and PE professionals will be looking for an exit before the Director/Principal level whether they choose for themselves or it is chosen for them. These are up or out professions and most won’t make it. Corp Dev is a natural landing spot that will immediately leverage deal skillsets while offering some amount of functional flexibility on future career paths.
Cuz doing deals ain’t all that glamorous
Pretty robust comments but have a couple more things to add. Corp dev roles don't have much security (although these days, what does). Firm does poorly and decides to axe M&A the next. Corp dev guys and gals tend to get stuck in the hamster wheel, lateraling from one job to the next. Comp ceilings are low/real, and the role is largely viewed as replaceable/cut and paste new talent. They also tend to get pigeon-holed as M&A professionals because that's wherein lies their experience. If you want to jump to ops, you tend to have to work in corp dev for a veryyyy long time before getting a shot at anything else. On the flip side, depending on firm, you might be doing solely ops (not what you signed up for). Hard to get back into IB/PE. Yes, you have buyside experience, but it's discounted. Obviously variable by firm, but that's what I've seen.
Also, you have a defined set of parameters for target acquisitions, so the flexibility/creativity is largely lost.
Only kids hate on it.
As you get older priorities change and you realize making $300-400K a year and working 30-50 hours a week and getting 30 days PTO is better than making $700K and working 70 hours a week with 10 days PTO.
I just want to add a datapoint to this. I exited from consulting to corp dev (below manager level). Would imagine our VP makes about $1M-1.5M and our directors make between $500-800k, depending on stock appreciation (maybe even more). Total comp, for me, is ~$240k with 3 yrs experience (added perks, like student debt repayment, etc. that I didn’t get at my old firm, brings this to ~$250k, assuming $0 of RSU appreciation). Hours are probably 30-50 hrs a week. At least for me, exiting from consulting the pay was about equal. I enjoy the job so far. I would agree that corp dev is highly variable by industry and by company. I’m in big tech and enjoy the venture investing/meeting with startups aspect of tech corp dev. I often see corp dev mentioned in forums with shitty comp numbers. Wanted to throw my team’s numbers out there as probably a higher end figure to CD comp. Also FWIW, we regularly get facetime with c-suite and team exits include Corp Dev leads at other tech companies and even a few C-suite leaders of public companies + normal exits like PM, HSW, etc.
Congrats! Do you mind sharing title and how much is cash / bonus?
Corp dev can be a marginal improvement in lifestyle with a massive haircut in comp. On the upside, you wont have to source as you become more senior
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