The difference between a $50,000/year employee and $500,000/year employee

Maybe I don't have enough experience/knowledge about this but what makes a person worth $500,000/year versus someone making $50,000/year. Before you say something basic like "The $500,000/year employee has more experience/responsibilities please keep in mind that the opportunity cost for 1 $500,000/year employee is 10 $50,000/year employees so the banks employing these $500,000/year employees is inferring that the 1 expensive employee has the same productivity as the 10 cheaper employees combined. So the question brings us back to: what makes a single person worth a salary of $500,000/year and why can't these employers find a perfectly qualified person to do the same job for a small fraction (let's say $150,000/year).

2 Comments
 

They either have skill set that is very rare. They drive in revenue or play a moderately important part in running the business. If they are driving in revenue and have a strong set of relationships to continue driving in business you do not want to lose them.

Only two sources I trust, Glenn Beck and singing woodland creatures.
 

Tempora harum iste ut porro est odio aut. Occaecati accusantium error sed. Vitae dicta reprehenderit aut eos voluptatem. Reprehenderit quo quibusdam voluptatem provident id dolorem. Voluptatem quis tempora iusto quas.

Deserunt consequatur nemo suscipit. Sed sit quae error.

Career Advancement Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.3%
  • Goldman Sachs 01 97.8%
  • Guggenheim Partners No 97.2%

Overall Employee Satisfaction

July 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Evercore No 98.9%
  • Morgan Stanley 01 98.3%
  • Banco Santander 02 97.7%
  • BMO Capital Markets 12 97.2%

Professional Growth Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 06 98.3%
  • Goldman Sachs 01 97.8%
  • JPMorgan 01 97.2%

Total Avg Compensation

July 2026 Investment Banking

  • Vice President (16) $429
  • Associates (46) $258
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (14) $159
  • 1st Year Analyst (81) $150
  • Intern/Summer Analyst (73) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”