What pays the best, IB, S&T, PE?
Simply put, what gets you the highest salary in finance, and what pays the best per hour? If your working in one field do you wish you went a different route and why?
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Based on the highest ranked content on WSO, the potential earnings in finance can vary greatly depending on the career path and the stage of the career. Here's a breakdown:
Investment Banking (IB): Starting out in IB can lead to a six-figure salary early on. As you progress, reaching Managing Director (MD) could result in making millions. However, this level of income is not guaranteed and is reserved for those who reach the top echelons of the field.
Sales & Trading (S&T): The information doesn't provide specific figures for S&T, but traditionally, S&T professionals can earn high salaries, especially if they perform well. However, the industry has faced changes due to regulations and technology, which may affect compensation.
Private Equity (PE): PE can potentially offer higher earnings than IB, especially if you're part of a successful fund. The earnings can be substantial, particularly through carried interest, which is a share of the profits from investments.
Regarding what pays the best per hour, the context suggests that finance might not be the most lucrative when breaking down pay by the hour. For example, investment bankers in the UK might earn £50K working 100 hour weeks, which breaks down to roughly £10.6 per hour.
As for whether individuals in one field wish they went a different route, the context doesn't provide specific testimonials on this matter. However, it's common for professionals to sometimes question their career choices, especially when considering work-life balance, personal interests, and the nature of the work they do.
Here is a question that you might be interested in and I can help you with: What are some considerations for finance professionals when choosing their career paths?
Sources: Does anything pay better than finance?
Only sharing my individual experience through friends/coworkers (I’m in commodity trading):
0-2 years in: IB
2-4 years in: IB/PE but narrowing
4-10 years: commodity trading
10+: whoever have passion for their job/set themselves up well
Comes down to what you’re interested in. Don’t go off this scale; your passion, whatever it’s in, will lead you to make more $ than something you’re not interested in
have you had any friends in structured products, particularly MBS trading? really curious how they stack up in that 4-10 yr range
I do not, sorry
Can you pm me? Really interested in the commodity space but really dont know where to start, so so far have an internship in s&t and a sophmore.
MBS traders are well paid and if you end up in the right place at the right time you can take on a lot of responsibility early in your career and get paid for it.
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