Bonus time is just around the corner and it seems that those voices about who gets how much at which bank are vanishing. People start to realise that huge bonus payments are outdated and that bonus payments decrease year by year (possibly partly offset by higher base salaries etc.) and that in the end the money is merely worth the effort. Surely most juniors believe in exit opportunities and thrive towards excellent job prospects following their banking stint but the general sentiment of staying on board seems even less presence nowadays than ever before. I hardly meet anybody who believes in this industry anymore and most people plan their exit and follow up job meticulously. While I continue to work quite hard (at least I like to think so) it becomes harder and harder to motivate yourself out of pure prospects and learning possibilities etc. I still believe there might be some light at the end of the tunnel but surely at the moment this is not done for the money.
Will investment banking (mainly referring to IBD) become a business model where pay just continuously decreases or levels out for most people (surely senior people etc. will continue to make extremely good amounts of money)? While currently effort, working hours and senior banker demand remain the same or even worse than before it might be very reasonable to expect that eventually this will adjust to the pay the job provides. In a sense work gets adjusted towards pay and willingness of employees to provide their time, health and intellect to the company (constantly at somebodies disposal) will decrease. I could see this moving towards a more corporate banking type of environment where people get their weekends, work less hours and find the ability to balance job and private life.
So how do we all get rich then?
Surely you meant
M&A bankers will always be useful when selling a company.
A great example is the bank I interned at last summer (MM). In 1999 (right before the tech bubble burst), the CEO was contacted by an IT company after it had received a $10 Million dollar offer and the CEO was reluctant to sell. At the first meeting between the IT CEO, the banker, and the potential acquirer, the potential acquirer raised its offer to $15 million. The banker advised the IT company that a sale was in the owners best interest and persuaded the company to run a full sell-side auction process. Two months later, the IT company sold for $30 million. Six months after that, the IT company probably would have been worth 0. That is the value of a banker.
this is the most garbage post i seen on wso -1 when i put my contacts in tommorow u noob
That's an insult to garbage. This is soft, watery projectile poo.
Dont think the culture is going to change, it's still going to be a grind it out kind of job at the analyst level. The pessimistic view is that you'll get paid as much as the bank thinks is necessary to retain you so you dont jump ship laterally. I'd still say though its about finding the right bank and the right group. If you find that, it can be rewarding enough monetarily and as an experience.
Since IPO and merger activity is down (and since financials profits as a whole are down), wages at banks, especially the people at the high end of the payroll, will decrease. However, sometime the economy will go back up (probably soon) and wages will back up as well
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