ECM Associate vs. Corporate IR, which offer should I pick??
I have 2-years of M&A IB experience at a strong bank, and I know I don't want to do PE, Corporate Development, Private Credit or essentially anything too technical or modeling-intensive.
Yes, I know I'm taking a step back in "prestige" or whatever but I'm trying to find something sustainable and not too intellectually challenging while still paying well (I know tall order!). I like public markets and they are both the least "technical" or intense exit ops.
Obviously, ECM pays more and has a better trajectory in upside comp but on the flip side it pretty much limits you to a VHCOL spot like NYC (don't think many ECM slots outside of NYC) and the main exit from ECM ends up being IR anyway.
Perhaps it's better to just get ahead and join IR now or will I get credit for staying in IB, even in ECM, to later exit to an even higher IR role? I've heard that job security in ECM can be very weak.
Really stuck deciding which path. I candidly don't want to get off the "high-finance" track because of the comp hit but *think* that I would like the work more. The WLB is likely better in Corporate IR, but ECM is still noticeably much better than M&A so I would be fine with either from a WLB perspective.
I suppose my greatest fear is getting stuck in a slow moving corporate gig with like a small base bump every year and that's it. I still want relatively quick growth.
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As an associate in ECM, I would take the ECM role. Your pay will be loads better for essentially doing the same work - ecm teams pays in line with coverage (my bonus was ~90% of base).
The advice I received when I asked my mentors about IR roles is they aren’t worth it at a junior level because the upward trajectory is super challenging until you enter a senior level.
People love to drone on that the work is boring and repetitive, but would argue coverage and M&A work is too. Compared to IR (and M&A), ECM will be a lot more fast pace and every day is different. Plus, you’ll still get all the C-suite interaction as a junior that you’d get in banking.
Thanks for the response. I had thought it would be relatively easy to work your way up in IR as a junior given the teams are relatively very small and report directly to CEO/CFO. So the way I take it you're not too concerned with the chance for a downturn or job security? If you could also share your estimate of hours that would be great too
Based on what I’ve seen, the corporate world has a very rigid career path. You aren’t just going to become the head of IR overnight. You’ll have good exposure to the head of IR, CFO, etc, but you’ll be stuck on the rigid promotion/job title/salary progression of that firm.
I think people overally inflate the job security point. Sure, tons of people in ECM get fired, but at the junior level, they were pretty bad and would have gotten fired in coverage or M&A too (not dependable or refuse to do work, leave the office at 3pm everyday, literally couldn’t tell you conceptually why you would or wouldn’t include certain pages as a 3rd year analyst, or had compliance breeches). Have seen entire teams get cut, but that’s super easy to explain in interviews. I also have great deal experience and was easily able to lateral once and am confident in my ability to do it again. I don’t plan on sticking around at a senior level, will move to IR then.
Hours are ~70-80 but all depends if you’ve got a good team or not, and deal and marketing dependent.
What are ecm hours like at the associate and vp level?
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Saw a number of individuals move to ECM, DCM and even S&T from my IB coverage team. Main reasons were wanting to maintain comp (as much as possible) and upward mobility whilst improving WLB (albeit never going to be a 9-5). Years later, most of them are still in those roles and have never looked back. If your main motivation is improving WLB but not sacrificing too much comp or wanting to get stuck in a corporate gig with limited mobility, then I think this could be a viable move.
Another option I've seen which you didn't mention is IR (fundraising side) in PE, PC, etc. A few friends made the move from IB and love it due to: Strong comp, Career trajectory, Better WLB, Still in a client facing role, etc.
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