Am I crazy?

Navigating through your career options, especially when they're as competitive and prestigious as the ones you've been offered, can indeed feel overwhelming. Your situation is quite enviable but understandably perplexing. Let's break down some of the key points regarding compensation and work-life balance between Sales and Trading (S&T) and Investment Banking (IB) to help clarify your decision.

1. Compensation Trajectory:

   • Early Career: As you've noted, compensation in S&T at the junior level is generally slightly lower than in IB. This is consistent across the industry, where IB roles tend to offer higher starting salaries and bonuses.
   • Mid to Late Career: The variance in compensation becomes more pronounced as you progress in your career. In S&T, the environment is very much "eat what you kill," meaning that your compensation is highly dependent on your performance, particularly the quality of your trading ideas and your ability to manage risk. Top performers in S&T can earn significantly more than their counterparts in IB, but this comes with higher risk and variability.
   • Comparison: The gap in compensation between S&T and IB can narrow or even reverse at higher levels, depending on individual performance and market conditions. However, it's important to note that the top performers in S&T often outearn those in IB, albeit with a wider distribution of outcomes.

2. Work-Life Balance:

   • S&T: Generally offers a better work-life balance compared to IB, especially at the junior level. The hours in S&T are more market-driven, which can lead to a more predictable schedule, although this can vary depending on your role and the desk you're on.
   • IB: Known for its demanding hours, especially for analysts and associates. The workload can be heavier and more unpredictable, with weekends often not being spared.

3. Exit Opportunities:

   • S&T: While the exit opportunities might be more niche compared to IB, they are by no means limited. A career in S&T can lead to opportunities in hedge funds, asset management, and proprietary trading, among others. Your macro interests and trading skills can be highly valuable in these areas.
   • IB: Offers a broad range of exit opportunities, including private equity, venture capital, and corporate roles. The skills acquired in IB are highly transferable and valued across the finance industry.

Given your interest in macro topics and the appeal of S&T to you, it's not "crazy" to lean towards the S&T offer. It's crucial to align your career with your interests and strengths, as this will likely lead to greater satisfaction and success in the long run. While the prestige and initial compensation of IB are tempting, following your genuine interest in S&T could be more rewarding, both personally and professionally, especially if you're passionate about it and not primarily motivated by compensation at this stage in your career.

Remember, both paths offer tremendous opportunities for growth and success. It's about finding the right fit for your interests, lifestyle preferences, and career aspirations.

Sources: Is S&T still a good career path?, Sales and Trading - A Comprehensive Guide, Sales and Trading - A Comprehensive Guide, Navigating The Floor: A S&T Analyst's Guide, Best place to start your career? IB or Tech?