Comments (31)

Feb 25, 2013

Interested in this as well

Feb 25, 2013

interested as well

but from the people that i know in CB (ED/MD in Deutsche), its not too high, and the work-life balance is very harsh

Feb 25, 2013

^ I thought CB had good work-life balance?

Feb 25, 2013

Depends. Portfolio Management or Business Development? Most corporate banking groups are bifurcated.

I'd say salaries are probably in the 200k range for MDs either way, but the bonuses vary tremendously.

Feb 25, 2013
Cries:

Depends. Portfolio Management or Business Development? Most corporate banking groups are bifurcated.

I'd say salaries are probably in the 200k range for MDs either way, but the bonuses vary tremendously.

For BB. MM is probably closer to $100-150K for VPs or SVPs. Not many MDs in the MM.

Feb 26, 2013

the range that you guys provided is rather interesting as CB first year analyst in a BB starts at 70k base and it goes up by 10k per year too, wonder what happened in between A1 to MD..

Feb 26, 2013
collisoncon:

the range that you guys provided is rather interesting as CB first year analyst in a BB starts at 70k base and it goes up by 10k per year too, wonder what happened in between A1 to MD..

bonuses.

Feb 26, 2013

Talked to a guy on boards who works for a smaller bank and A BB commercial banking group made offers to a a few VPs for 120-140k with 25-50k sign on. With bonus its possible to hit 200k. Im guessing its definitely possible to make 300k+ at the top which is great considering you work 40-50hours.

Feb 26, 2013

corporate banking is not a 40-50 hr job. not sure who started this but people regularly work thru the night and both weekends.

Feb 26, 2013

What are we talking about here?

(1) IB, sometimes referred to as corporate banking
(2) An assortment of corporate services (think Citi Global Transaction Services)
(3) Commercial Banking - lending to corporate clients

Feb 26, 2013

(2) with (1) included

Feb 26, 2013

.

Feb 26, 2013

^I interpreted the thread as 3 as well, but on a larger scale and with more interesting deal structures (includes syndications, etc.). I always interpreted corp banking as com banking for larger loans, but maybe I'm wrong?

Anyway, I don't know much about corp banking (read nothing besides what my friend told me), but I doubt they'd be clearing 200k working only 40-50 hours a week. It's probably more like 55-60 with a few really bad weeks when closing a deal. I also doubt, however, that it's as bad as banking at any level just because the nature of the work is less stressful than M&A transactions. It honestly doesn't seem like that bad of an option, but the exits probably aren't as prevalent either. My friend that I mentioned before, however, is looking to try and move into a LevFin/DCM group and I wonder if that's possible from corp banking.

Feb 26, 2013

3 with a sprinkle of 1 and 2.

Feb 26, 2013

As far as I am aware a lot of universal banks are moving towards C&IB under one house and an MD will cover both M&A and financing (DCM, LF, ECM) with potential for other products too depending on how "entrepreneurial" the firm is.

Feb 26, 2013
t-jfk:

As far as I am aware a lot of universal banks are moving towards C&IB under one house and an MD will cover both M&A and financing (DCM, LF, ECM) with potential for other products too depending on how "entrepreneurial" the firm is.

This. Basically, the Corporate Bank "Relationship Managers (MDs)" serve as "gatekeepers" to all product lines available to the company (ECM, DCM, LF, M&A, bank & treasury products, etc.). They are the main points of contact for general bank information/relationships and then will defer to specific product line colleagues to handle specific projects. Corporate bankers are not commercial bankers and I've always thought that being a corporate banker would be a nice gig at a huge bank because your name gets tied to all transactions for that client... not bad. It may not be as "cool" as working solely in M&A but you'd still gain exposure to M&A transactions for your specific coverage universe... not to mention all of the DCM transactions that accumulate revenue throughout the year...

Feb 26, 2013
ChiTown82:
t-jfk:

As far as I am aware a lot of universal banks are moving towards C&IB under one house and an MD will cover both M&A and financing (DCM, LF, ECM) with potential for other products too depending on how "entrepreneurial" the firm is.

This. Basically, the Corporate Bank "Relationship Managers (MDs)" serve as "gatekeepers" to all product lines available to the company (ECM, DCM, LF, M&A, bank & treasury products, etc.). They are the main points of contact for general bank information/relationships and then will defer to specific product line colleagues to handle specific projects. Corporate bankers are not commercial bankers and I've always thought that being a corporate banker would be a nice gig at a huge bank because your name gets tied to all transactions for that client... not bad. It may not be as "cool" as working solely in M&A but you'd still gain exposure to M&A transactions for your specific coverage universe... not to mention all of the DCM transactions that accumulate revenue throughout the year...

Exactly, so it COULD be a route to being a better coverage MD since you, as a corporate banker, focus on relationships and daily financial needs. With the IBD coverage teams being heavy on selling products, as a CBD you focus on what's best for the client AND the bank.

From people I have networked with at Citi for instance you get a lot of senior exposure and opportunity to travel early on. Plus you get to work with the IBD team on all the transactions.

All depends on your bank, I guess, on how they are set up and thus how far you can go.

Feb 26, 2013

I don't know about middle market/commercial banking but the 300k all in number is off for MD level covering large accounts. At the senior level, the line between a corporate banking RM and a coverage banker can often become blurry. From what I've seen the comp is more like 300-500k all in and higher number for industry/region/senior head.

To add to some of what is said above - I would argue that the career progression to MD is more painful/difficult since the junior guys will have to spend endless years doing credit analysis (if on portfolio side) or relationship/account house keeping (if on business development) before really getting to meaningful client interaction.

Feb 27, 2013

I was the person nicktm spoke to. I work for a small regional comml bank ($2B assets). As a VP, our base is around $100-$130 with annual commissions around $25-50K. We work around 45-50 hours - no more than 55. 55 is if you are working multiple closings.

I was approached by a BB who work large syndications (mainly $20MM-$500MM revolver and term facilities). Base for VP was $135K, $50K sign on, $25K stock vesting plan. Annual bonus there was 25-75% of base.

As a VP at a BB, $200K is very doable. I will say your are going to max probably at $500K at the SVP/ RVP level. So the ceiling is a lot lower than IB.

Hours are def not as bad as IB. Most of the time, it is a 40 hour gig. But if your ballin, you're working 55 hour weeks.

Feb 27, 2013

So this begs the question, are you taking the BB job? Or was this in the past? Also, how long on average does it take to make VP?

Best Response
Feb 27, 2013

A lot of misinformation here with regards to corporate banking. For the benefit of readers and future bankers, I can address some of the questions discussed here. As a BB corporate banker, I can tell you that pay and career progression will follow the normal course. Analyst/Associate program is your typical 3 year path with base being (70/80/90) and (95 stub/125/150/175), respectively. Bonuses if you're at a BB will be market rate or same as what you WSO people call "traditional IBD" bonuses. Now some of you may be asking how comp can be the same? Well when a bank does a deal, which almost always involves some sort of financing, your deal team will consist of many different coverage and product specialists. Corporate bankers being loan product specialists will get involved given almost every company out there, with very few exceptions, have debt in their capital structure. Remember, M&A constitutes event of default (change of control provision) so debt must be refinanced which means corporate bankers will almost always get involved. Regardless of whether a deal gets done or not, through some type of arrangement fee, etc. people will get a cut for the work put in which not only extends to bankers but operations, lawyers, and other constituents. Banking is a team effort. Once you get to VP level and above, things change with respect to how you get promoted and etc., which is the case not only for corporate banking but applies to other coverage and product groups. However with respect to pay you will not see much difference. Not everyone makes it that far and those that do get paid along similar levels but of course with some variability. Regarding hours worked, at a BB you will be pulling again I use the term "traditional IBD" hours given the insane amount of deal flow. For all you prospective monkeys out there, there is more to banking than financial modeling and power points. Executing a deal is a whole other world that involves A LOT of work and time. Now someone working at a smaller mid market or commercial bank may work less hours given the lower deal volume and lack of available capital to lend towards new opportunities. Regardless of what group you're in, banking will require a lot of time commitment given its demanding nature and for that reason and others pay handsomely.

    • 3
Mar 19, 2014

There is a difference between corporate banking analysts/associates who work directly for the corporate banker and do pitchbooks and the credit analysts/AVP's. Both are in the Global Corporate and Investment Banking division the BB I work at. The base sounds right, but the bonuses could only be comparable to IBD for corporate banking analysts.

Feb 27, 2013

I didn't take the offer.

I'm crushing it where I'm at and am comfortable. With the amount of deals I closed and with what I have in the pipeline, my incentive checks will be chunky. I was recently promoted to VP am on a fastback to management.

Deal sizes aren't super huge but vary. I've done $200K loans and am in the middle of a $16MM construction project where I'm holding $10 and will participate off the other $6. It's a mixed bag. Especially at a smaller comml bank like mine. I could very easily latter to a BB but it would involve a commute and really for what? Just to say I did a $200MM revolver?

I'm more concerned with my level of compensation, work/life balance, ease of commute, and fast tracking towards management. Execs at my Bank are at $500K-$750K.. Not bad when you're in a small market - that money goes far.

I've learned that while I might not have the sexiest job and don't have a prestigious BB on my resume, I get paid pretty fucking good and don't have a lot of the stress that comes with BB.

To each their own.

Feb 27, 2013

PS - I'm 30 and have been in at my Bank for 4 years. No previous Banking experience. Did my MBA at a private non-target in the area and started as an intern (credit analyst).

Feb 27, 2013

Also, banker00's post sounds about right from what I know about Corp BB Banking.

Im speaking for more of a commercial (mid market) point of view.

Feb 27, 2013

Gregt14, are you in commercial banking as in mostly clients with 50M-1B in revenue? If so what's the progression and even exit opportunities, specifically at the junior relationship manager role? If you stay in commercial banking what's comp look like, similar to what you mentioned above?

Feb 27, 2013
gregt14:

Also, banker00's post sounds about right from what I know about Corp BB Banking.

Im speaking for more of a commercial (mid market) point of view.

Do you mind if I ask what region you are in?

Feb 27, 2013

Northern California but not in the Bay Area.

Our biggest clients have up to $150MM in revenue although we are part of syndications with larger corporations pushing $500MM in revenue.

Like I said, I am more in the small-to-mid market as opposed to Corp Banking.

And just so people know:
Business Banking - $2-$20MM in revenue
Commercial - $25MM-$500MM in revenue
Corp Banking - $500M +

This is how the BB are structured.

In my Bank, we blur between business and commercial which is how a lot of the smaller regionals are structured.

Exit opps arent there in my position. Like i said, my goal is to advance to a senior managment / exec role either at this Bank or a simmilar size Bank.

Feb 27, 2013

Thanks gregt14, I am going starting at a regional bank (12.5bn assets) in June . It's hard to get salary information on them so I'm hoping they are along the same line as yours.

Mar 20, 2014
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