Most Helpful

I have an older posts on how banks make money and how that is split between departments.

https://www.wallstreetoasis.com/forums/how-ibd-makes-or-loses-money-and…

For BB and other large firms this question is usually a black box. For boutiques, I've seen MD's make anywhere from 20 to 30% usually (or as high as 50% when the firm is smaller and the MD is more of a owner partner vs. employee).

Fixed costs are highly variable. In a good year, fixed costs are minimal and the firm is highly profitable. In a bad year, the firm is losing money. Note "fixed costs" here includes everything from telephones to VPs (ie, no revenue generating/originating IBD resources).

Hope that helps.

 

Staff pay, office and office front stuff. Machines etc. And they usually keep cash heavy to be liquidated at all time after 2008. Profits goes to mostly back to the vault. And performance bonuses are calculated % per deal.

 

Just for everyone else, $1mm fee isn't getting anyone excited. 

Associates/Analysts don't get any fee %, regardless of how big it is. Juniors are not tied to relationships, whereas VPs and up have selling duties and quotas to hit (calls made / fees brought in / transactions executed)

You'll only get specific fees if the head of DCM/IB/ECM is able to find this thread. Only they will really know how fees get split up within specific groups, and then to specific MD's. A lot of it depends on performance of group as well. evne if you had a huge deal go through, in a down year, thats still going to get split up with the rest of the bank. That's just corporate life

 

It's not that complicated. If you look at the public EBs, they all announce and target a certain ratio of total comp to revenue, usually in the 55% to 70% range or so. The way fees get split in reality is:

  • Analysts and Associates: get paid whatever the minimum is that the bank thinks will keep them happy and not quit, benchmarked to street 
  • VPs and Directors: get paid the minimum to not quit, but with more variation between top and bottom bucket. They may also get a tiny "cherry on top" if they legitimately contributed to a revenue event, but it's not like a % of the fee generated, it'll be a fixed appreciation bonus that brings them above the normal range (e.g. $100k extra as a pat on the back)
  • MDs: get the entire remainder split between them, subject to the desired overall comp ratio. So if the A/A/VP/D comp chews up 20% of revenue, then the MDs will share the remaining 45% of revenue, so that total comp to rev is 65% or whatever the target is. The attribution of deals between different MDs is more complicated, depends on the role they played in the deal
 

Voluptas consequuntur ipsam ad nihil est ipsa ut. Id quia labore aliquid officiis ducimus ipsa omnis. Aut et et aut sit. Est culpa soluta nihil aliquam et eaque.

Odit odit dolores saepe laudantium repellat ut nisi. Repudiandae modi commodi saepe consectetur nulla.

Voluptatem non omnis in ut. Accusamus minus voluptatem quam magni dolor velit explicabo. Qui blanditiis fugiat accusamus expedita voluptate impedit id. Cupiditate quia esse enim magni voluptatem culpa assumenda.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $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

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
GameTheory's picture
GameTheory
98.9
6
dosk17's picture
dosk17
98.9
7
DrApeman's picture
DrApeman
98.9
8
CompBanker's picture
CompBanker
98.9
9
kanon's picture
kanon
98.9
10
numi's picture
numi
98.8
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...”