Bank Tellers make more than IBD analysts (Hourly)

I don't understand why you all brag about how much comp you make. As a a finance major this seems like simple math:
On call 24/7/365 so you are working 24752= 8736 hours

Assuming avg all in comp ~ 140k we have hourly salary = 140k/8736= $16.03

But you have to pay taxes due to that salary (while bank tellers don't)

So now assume a 30% tax rate

Adjusted hourly wage = $11.21

This doesn't even include opportunity cost of health, etc.

Meanwhile Bank tellers make $13-$15 an hour.

So my question is why do you all brag about high comp when your comp is low? Does the prestige motivate you to do IBD? What is it about investment banking that makes it hip?

Comments (63)

Most Helpful
Dec 2, 2019

Not too sure if I'm missing something, but I was a teller for 4 years and got taxed every pay check

    • 12
Dec 2, 2019

I looked into it and you're right. However I don't think I'm entirely wrong still. Because investment bankers and bank tellers lie in different tax brackets (and NYC taxes the rich more heavily) I think my claim may still hold (or the salaries or close). If you could provide rough estimate of your tax percentage and we had an investment banker weigh in it would be interesting to see.

    • 1
    • 7
Dec 3, 2019

It doesn't seem like you understand how tax brackets work.

Federal Tax Brackets

New York Tax Brackets

Bonus! A handy NY State Income Tax Calculator

    • 2
Dec 5, 2019

Can you explain your comment? I don't follow.

Dec 2, 2019

IB is the gateway to other cool, interesting & most importantly high paying careers. That's why most people go into it.

This post is pretty dumb tbh

    • 7
Dec 3, 2019

See my post at the end of this thread

Dec 2, 2019

Sorry all of the IBs you applied to didn't think you were smart enough, sport.

I come from down in the Valley, where Mr. when you're young, they bring you up to do like your daddy done.

    • 2
Dec 2, 2019

According to your logic a firefighter makes $5 an hour before tax.

In year 3 someone in IB makes close to $250,000. How much does a teller make in year 3?

Another 3 years later a VP makes over $500,000.

This doesn't even consider a potential switch to PE or HF which would be even more $$ and less hours.

    • 1
Dec 3, 2019

12 years ago we used to compare McDonald workers to bankers per hour worked, and it was similar in the first year. To be taken with a grain of salt and a bit of humor.

    • 1
  • Analyst 1 in IB - Ind
Dec 3, 2019

Dude, you literally assumed someone would work 24/7 for a year without sleep and time to eat/shower or bloody stretch the legs for 5 seconds

Dec 3, 2019

Doodly doodly doodly doo

    • 8
    • 2
Dec 3, 2019

In other professions time you are on call is paid time. It's frequent in med for doctors to be on call on weekends so they can make MORE money. They don't get paid based on whether they are actually called into the hospital/work or not, the pay is derived for being on call.

Dec 3, 2019

Even with your insane assumptions of working literally 24/7, bank tellers still make the same post-tax per hour as a first year analyst. Also, last time I checked I don't pay my rent "adjusted per hourly rate".

This can't be a serious post.

Dec 3, 2019

24/7 is not an insane assumption. As I mention above in other professions time you are on call is paid time. And to say you are not on call 24/7 would be inaccurate. How many times has your MD interrupted you in the middle of the night to change formatting on PPT. What about that PTO that you never get? And how about weekend plans/ dates being cancelled due to last minute work?

    • 2
  • Works at Bank of America Merrill Lynch
Dec 3, 2019

Never

    • 1
Dec 3, 2019

this is blatant trolling. everyone but op is retarded.

  • Associate 2 in CorpDev
Dec 3, 2019

I started to type a response but then realized OP is probably too dumb to understand why his argument is flawed...

Dec 3, 2019

How many times are we gonna have this thread

Funniest
Dec 3, 2019

OP please post again in the future to tell us which bank you are working for, so that I can short it.

    • 7
Dec 3, 2019

And what will you do if I end up at your firm :)

Dec 3, 2019

Get rid of you and ruin your life.

    • 1
    • 1
Dec 3, 2019

except i have 140k at the end of the year and you have more like 40...

and comp goes up almost exponentially in IB, not sure what tellers peak at but highly doubt it's 6-figs

Dec 3, 2019

tellers with a UG degree def have exit ops see my post below.

    • 1
Dec 3, 2019

140k maybe but you have to live in an expensive flat in Manhattan and buy expensive food/clothes. I can live in the suburbs and commute with living expenses much cheaper (that is if I decided on NYC as well)

Dec 3, 2019

Nobody is going to rob an investment bank, so when you consider the risk of a hold up as a bank teller, you couldn't pay me enough to risk it, hence the very high compensation for depositing people's cash.

Dec 3, 2019

Idk the bank I've been to has metal detectors in the front door and an intricate system where you can't get in unless an internal employee sees that you pass through the scan. I know not every bank is like that but there definitely are banks with added security. In such a case the risk goes down to 0.

Dec 3, 2019

Good. Pay me less so that more can be spent on security. Hell, that security guard probs makes more than me since its more dangerous.

Dec 3, 2019
  1. OP is obviously a troll
  2. 30% tax rate estimate is too low unless you're an analyst selling equities in Dallas
    • 1
Dec 3, 2019

Gotta be a troll.

Also, assume a ~40% tax rate and >$500k annual comp.

--$$--

Dec 3, 2019

Analysts are not making 500k...

Dec 3, 2019

Your original post actually is incorrect, and you proved it in your explanation. You said that Bank Tellers make more money and then go on to say that analysts make $140k. You then boil it down to an hourly rate, but that has nothing to do with total compensation, just the rate at which its accumulated. Your post is wrong. Analysts make more money in total, and yes they work more hours. You make $112k less per year than an analyst with your cushy 9-5 earning $14/hr.

Dec 3, 2019

Not all that unusual to be making $500k as a 3rd year analyst at an elite boutique

--$$--

Dec 3, 2019

Am I unable to throw MS at the OP?

Dec 3, 2019

I see a lot of you are using an exponential growth argument. However attempting to use VP comp to back up your argument has some issues. Most people leave after 2 years as an analyst so those who make VP are few and far in between. Bank tellers have solid exit opps as well (F500 finance, loan officer, etc. esp if you have a UG degree). Also most of you end up going to B school to get those "exit ops" so thats another $100k in tuition + 2 years opportunity cost of salary which is at least $200k. This wipes out 1-1.25 years of IB analyst salary. While tellers have developed intrapersonal skills dealing with customers and have lateraled over you have to go into more debt to get a good position.

    • 2
Dec 3, 2019

Even assuming you are correct, Bank Tellers are one of the most easily automated jobs out there. Retail branches are closing left and right.

Vote Andrew Yang 2020

https://www.bankrate.com/banking/bank-tellers-disa...

    • 1
Dec 3, 2019

There is a risk of automation but as I mentioned above with a UG degree you use it as a stepping stone to lateral to other finance careers. It wouldn't be a lifetime move. That's why I'm comparing it to analyst salary as many people here use IB analyst as a stepping stone.

Dec 3, 2019

Compensation and hourly rates are different comparisons.

If you used your hourly rate comparisons and asked people to pick a job based on the hourly they would likely pick the higher hourly rate,

If you asked people to pick a job based on total compensation, they would likely pick $140,000 per year than $31,200.

IB still has higher comp, just a lower adjusted hourly rate according to you.

Dec 3, 2019

I've edited the OP so that it reflects the hourly component. So my questions still stand:

So my question is why do you all brag about high comp when your comp is low? Does the prestige motivate you to do IBD? What is it about investment banking that makes it hip?

  • Analyst 1 in PE - LBOs
Dec 3, 2019

This is either a troll or the dude is literally retarded and hence will make the perfect bank teller. Even if we grant the poorly laid out assumptions, no one is coming to banking because the analyst pay is the greatest thing ever. It's an entry level job at the end of the day. They come for the advancement opportunities and the comp scaling, which are far beyond anything a teller or any hourly employee will ever hope to reach.

Dec 4, 2019

I always see comp and money as a factor for doing IBD (at least on WSO).

Dec 3, 2019

Hey hey hey take it easy. Us tellers are trying to keep our insanely high comp a secret around here....

    • 2
Dec 3, 2019

Currently a bank teller. Shit blows

Dec 4, 2019

You can't compare hourly pay to salary pay by counting all the hours in a year.

For a strict financial comparison, it'd make more sense to financialize the opportunity cost of working more than 8 hours a day from a net earnings perspective.

From a strictly hourly pay comparison, just use 80 hours a week or whatever you think is right (basically double the tellers pay).

From a work life balance perspective - the value of lost time is different for every individual.

This also loses long term benefits. E.g. if you bank your extra pay over the teller for five years, then become a teller, what is the long term impact less the negative impact of the short term "loss" in terms of hours. Or, more likely, bank [x%] of your pay for five years and then take a six figure 9-5 job.

This model is busted bro.

    • 1
Dec 4, 2019

see below

  • Intern in IB-M&A
Dec 4, 2019

Why does this post have so many replies? Such a troll post.

Dec 4, 2019

Many of you are using 'bank teller for life" as a flaw to my assumptions. However if you have a UG degree in the bag, this is simply wrong. There are plenty of exit ops for a bank teller. Your intrapersonal skills/dealing with customers is valued in this business. Powerpoint and Excel are used anywhere in this business. The next career a bank teller would lateral to would use these skills. Hence to think Investment banking provides a skillset that can't be found elsewhere is absurd. At best you learn how to be the greatest kiss up to your boss.

Dec 4, 2019

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Dec 6, 2019
Comment
Dec 6, 2019
  • Analyst 2 in IB - Ind
Dec 6, 2019