Starting Salary Trends for Analysts and Associates

Based on the most helpful WSO content, here are some insights into starting salary trends for analysts and associates:

1. Investment Banking Analysts:

   • In 2017, first-year analyst compensation (base + bonus) averaged $121,000, increasing slightly from $114,000 in 2015.
   • By 2018, this figure rose to $126,800, reflecting a steady upward trend in starting salaries.

2. Investment Banking Associates:

   • Associate compensation increased from $211,000 in 2015 to $218,000 in 2017, and further to $223,000 in 2018.

3. Commercial Real Estate Analysts and Associates:

   • Compensation varies significantly based on the type of firm and location. Analysts typically earn a base salary in the $60,000–$80,000 range, with bonuses of 15–20% or more.
   • Post-MBA associates often see base salaries in the $110,000–$130,000 range, with higher bonuses. Some senior associates without MBAs can earn closer to $250,000 all-in, though this is not the norm.

4. Real Estate Private Equity (REPE):

   • REPE shops tend to pay slightly better than developer/operator shops, with additional earning potential through promotes and advantageous JV deal terms.

While investment banking has shown consistent growth in starting salaries, commercial real estate compensation appears more variable and dependent on firm type, location, and market conditions. If you're noticing slower growth in CRE, it could be tied to these factors rather than a broader industry trend.

Sources: Life in Acquisitions (Analyst/Associate), https://www.wallstreetoasis.com/forum/investment-banking/2017-investment-banking-report-8-key-trends-to-know?customgpt=1, 2017 Investment Banking Report: 8 Key Trends to Know, 2018 Investment Banking Report: 8 Trends in the Industry