Stick it out to VP or take risk earlier
Bit of weird one - at a “top” group at a “top” bank that people go on about here. Drank the cool aide a bit and didn’t leave to PE (not US so less structured PE recruiting process).
Now I’m a mid level associate, tired of banking and wondering if I just stick it out to a VP/ED promo for the cash and non finance prestige or leave earlier to start my own thing / join a start up?
I’m 25 so feel like I have a bit of time but also don’t see the point in staying in a job where I’m not learning as much anymore just for the pay check
Your situation is a common one, and it's great that you're reflecting on your career path at this stage. Here are some considerations to help you decide whether to stick it out to VP or take the risk earlier:
Reasons to Stick It Out to VP/ED:
Financial Cushion: Reaching VP/ED will likely provide you with a significant financial buffer, which can be helpful if you decide to take risks later (e.g., starting your own business or joining a startup). The pay at VP level is substantial, and a few more years of high earnings could set you up for greater financial freedom.
Prestige and Credibility: Achieving VP/ED at a top bank can enhance your resume and open doors to senior roles in corporate development, private equity, or strategic finance later. It signals to others that you’ve succeeded in a highly competitive environment.
Optionality: As a VP, you may have more lateral opportunities to transition into roles with slightly better work-life balance, such as corporate development or private equity. While the hours may not be drastically better, the work might align more with your interests.
Learning Sales and Leadership: At the VP level, you’ll start to focus more on client relationships, sales, and leadership skills, which are transferable to other industries, including startups.
Reasons to Leave Earlier:
Burnout and Lack of Learning: If you’re already feeling tired of banking and not learning much, staying longer might exacerbate burnout. Banking is demanding, and if you’re not passionate about it, the grind can take a toll on your mental and physical health.
Opportunity Cost: At 25, you have time on your side. Leaving earlier allows you to explore other interests, take risks, and potentially build something meaningful while you’re still young and adaptable. The longer you stay, the harder it might be to pivot to something completely different.
Startup/Entrepreneurship Timing: If you’re considering starting your own business or joining a startup, earlier is often better. Startups value operators with hands-on experience, and the earlier you gain that experience, the more valuable you’ll be in the startup ecosystem.
Diminishing Returns: As a mid-level associate, you might already have the core skills that banking offers. Sticking around for a VP title might not add significantly to your skill set if you’re not planning to stay in finance long-term.
Key Questions to Ask Yourself:
Final Thoughts:
There’s no one-size-fits-all answer. If you’re leaning toward leaving, consider whether you can build a financial cushion and network while still in banking. If you’re leaning toward staying, set a clear timeline or milestone (e.g., VP promotion) and reassess your goals at that point. Ultimately, the decision should align with your values, interests, and long-term aspirations.
Sources: Pick you life - Investment Banking, Leaving IB to read books for a year and maybe join a start-up, For Those Considering Banking - Some Broad Advice, Ask CompBanker, Banking -> Startup PM on who SHOULD join IB
spent 3y in IB and left to strategic finance once got promoted to assoc - honestly never looked back. Going to start ups is 10x harder when you get to the VP level cause of seniority / pay / perception etc. So if you are thinking about it i d say go now. I wrote about my path in my substack "off track, by design" so some insights there, but generally as long as you are prepared for a pay cut with more interesting work better life that should be a win win.
Is it that much harder to leave at VP level to go to strategic finance / start-ups? I'm a VP in PE looking to get out (did IB previously as well)
I think the point is the seniority overall. The more senior you get the more difficult it is more move into start ups / scale ups if you have never done that before. 1) the pay differential does get larger 2) its hard to take someone into a senior role at a start up / scale up when they ve never done that since you both have the risk of them not performing well in a very chaotic founder led environment as well as not being able to lead a team without an in house experience.
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