$300k+ ???
I read somewhere that there are around 15,000 investment bankers in the US.
I wanted to know how many of these bankers make above $300,000 with bonuses in an average year.
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And in Europe too
I think a great number of Associate 2 could reach this figures ! M&A is so excellent regarding money , models & bottles
Never seen this stat, but if we estimate that analysts at all levels (who make about 100-170k) and 1st year associates (200k-300k) make up about 35% of the entire IB work force, that would leave everyone 2nd/3rd year associate and up. Since almost everyone above that level should pull in close to or at least 300k, I'd guesstimate that about 65% of all people who work in IB make over 300k.
Impressive reasoning but how many ping pong balls can you fit inside your small intestine? And once full, how many cubic inches of non-ping pong ball would remain?
Answer that one and you're on to Round 2 at BCG.
you should break the 300k ceiling when you are a senior associate, which is 2-4 years into associate
In EUrope ?
Thanks Mezz and eric1025 for your responses
^^^^Zurich and London base is similar to here. Frankfurt is the same for 1st year analysts (60-70k E) but Associate is a good 20-30% lower. Frankfurt bankers get taxed 50% on their base but the bonus doesn't get taxed nearly as much and the cost of living isn't even close to that of London. 1500 Euros gets you a gorgeous place in the Upper east side of Frankfurt. With the circus that's going on in London, I'm not sure what their total net pay will look like. NYC is still hands down the best place to be a banker.
moneyneversleeps2, I assume you are talking about the base here (60-70k), right?
In what range (€) is a typical IBD analyst bonus in Frankfurt?
thank you!
The upper east side of Frankfurt...wtf is that?
I think you guys are way off in your estimates. Sure, at a BB or top boutique in a major city, you'll be earning 300K+ by the time you have 3-4 years under your belt, but that's not the case if you're working for a no-name boutique in a medium-sized city.
If the number of investment bankers is really around 15,000 just in the US, I wonder how many of those work in places like Atlanta, New Orleans, St. Louis, Cleveland, Denver, Pheonix, Minneapolis, etc. I assure you that most of the people at associate level in semi-major cities don't make $300k+. I would imagine that only Ds and MDs in those cities make that sort of cash.
Of the 15000 I-bankers in the US, I would imagine that half (at most) live in NYC, Chicago, LA, SF, or Houston. Of the half that live in major banking centers, I would say that half of those make $300k+ in a year. Of the half that live in less major cities, I would estimate that maybe 15-20% pull in $300k+. Seeing as I have good friends in two of the non-major cities listed above, and I know they don't make anywhere near $300k at firms that some of you might be able to name, I think my numbers are probably pretty close to the truth.
In total, I think you're looking at something like 33% of I-bankers making $300k or more nationwide. The skew, of course, is massive. At the top end, there will be some guys pulling in $10-20MM. At the bottom, I really don't think anyone in I-banking gets paid less than $50k (even in a shithole like Detroit).
If someone had a pie chart/bar graph/histogram/whatever showing the breakdown of banker pay NATIONWIDE, I would be really interested in seeing it.
So? Their market share in the investment banking industry is so small it is negligible. Remember that the investment banking industry consists of just a handful of firms. Look at the league tables. Those little guys shouldn't even be included in this analysis.
It's kind of like "80% of students who graduated from a university in the U.S. were unemployed upon graduation." Sure, but there was once a time when the word "university" actually meant something impressive like oxford or cambridge, but nowadays you can go to a "university" online.
d.p.
Im going off my own bank and other european banks at which I know people. Obviously everyone isn't going to be some 24 year old genious making 175k base as a 2nd year analyst unless their last name is Mack or Blankfein. Once you leave the big banks, the high base salary leaves too. I'm pretty sure a banker at Baird or Blair can consider himself lucky to be touching 300k total comp within 5-6 years.
Umm.. I disagree. First off a second year is not making 175K base salary... he's lucky if he gets 150K all-in. Second, from what I've seen/heard boutique banks are not far behind the BB. It may be 20K behind their BB counterpart.
Lucky to be touching 300K within 5 or 6 years... I'd say that could be the case for BB banks as well.
I dont know much, but wouldnt it be a generalization to assume that boutiques and MM banks are always behind BBs in terms of comp? I quoted CompBanker in another thread recently. He stated that he made more than his friends at BBs every year, and he was at a MM firm.
All depends on deal flow, for boutique and MM at least.. would that be a good assumption?
Umm.. to a certain extent. The thing is BB firms have a very rigid structure. You're not making more/less base salary than anyone else and your bonus is not going to be waaaay above or below anyone elses. At a MM firm, compensation is much more flexible... especially for top performers. The other differentiation, IMO is that some MM firms will make sure to give all-stars outsized compensation as an incentive to stick around and keep up the good work. They have the flexibility and authority to do this and many smaller firms attract and retain top talent through a culture that promotes frothy compensation for top performers.
At a MM firm your comp comes down to the how the firm did, the culture and how valued you are. So there is potentially a much softer/flexible ceiling. At a BB firm your comp comes down to how the firm did. Yeah you'll fall into top/mid/bottom bucket based on how valued you are, but its a step function.
I said Upper East side of Frankfurt so people would understand the type of neighborhood I am talking about, guess that didn't work.
Yes, Im only talking about the base. Bonus is a bit lower for the BBs I know. Marcus explained the MM comp packages above so I'm pretty sure the same rule applies to the Frankfurt offices.
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