Finance vs. Law
Which is a better career path, in terms of:
1) Overall career compensation 2) Difficulty of reaching the top (MD in banking vs partner in law) 3) Career stability 4) Breaking into top firms (BB bank vs top law firm) 5) Work life balance
I’ve done both. The jobs are completely different in almost every way imaginable, and anyone who tells you otherwise is someone who hasn’t done both.
So you should do the one you’ll be better at. Any other considerations are pointless because when two jobs are so different, it’s highly unlikely you will be equally good at both. Take the time to explore who you are and which one is a better fit for your brain.
But to answer your questions:
1) Overall career compensation
Biglaw partners complain that senior ibankers make more. But there’s a lot more biglaw partners and for every senior banker there’s many more from his junior class who left along the way. So when you include all the hopefuls who didn’t make it, it’s a lot more equal.
2) Difficulty of reaching the top (MD in banking vs partner in law)
Generally harder in banking. But if that’s what you’re better at, then no.
3) Career stability
Law probably a bit more stable bc you have a clearly defined skill (you passed the bar and can practice). Financial skill set is clearly defined for some roles . . for IB you need valuation for example . . but broadly speaking there are a lot of people “in finance” who don’t necessarily have a strong, clearly defined and valuable skill set to market.
4) Breaking into top firms (BB bank vs top law firm)
Very personal. Law firms care about your law school grades and nothing else whatsoever. You could be a morbidly obese militant communist with missing teeth and body odor, and Cravath will hire you if you are top 10% at a top school. Or you could be the most presentable and likeable person on earth and if your grades are just a hair below cutoff, you’re out.
Banks are looking for a much broader skill set where the former example I gave would never get in and the latter would.
5) Work life balance
Both terrible but I’d say there’s more pressure in banking. In banking, you can always do more. The deck can always be better, the model can always be more accurate. Not true in law, when the contract is drafted it’s drafted.