How much can you make a year if you're on the sales side of sales and trading? Similar to what a banker would make?

Trying to weigh the two professions. Thanks.

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Comments (10)

Jan 12, 2012

At least 0 dollars.. And up to probably 100 bazillion dollars

Jan 12, 2012

This is a stupid fucking question. you make the same first 2 years, then s&t you make more.

Jan 12, 2012
Bernankey:

This is a stupid fucking question. you make the same first 2 years, then s&t you make more.

Lol. Chill out man. Just asking.

Jan 12, 2012

Im pretty sure you make the same for S&T and IB as an analyst (base salary wise). IB compensation should generally be more, because of the large bonus you receive in the end of the year based on deals. but generally it varies on who your clients are etc.

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Jan 12, 2012
sl7160:

Im pretty sure you make the same for S&T and IB as an analyst (base salary wise). IB compensation should generally be more, because of the large bonus you receive in the end of the year based on deals. but generally it varies on who your clients are etc.

Fair enough. What about later on? And how exactly are the salespeople paid? i'm sure it's commission based. how much per sale do they get to keep?

Jan 12, 2012

I'm not an expert on this topic never having worked in sales, but I know some people who are long-tenured institutional sales people and we have rapped about it a bit. One woman I know who has been in it for about 10 years and has a pretty good book makes about $400K in a good year at a small regional shop. It's commission based, so its variable. She basically pushes analyst research to clients and repackages it, but doesn't really add that much value other than getting someone's attention IMO. She does attend some conferences once in a while though, so maybe she forwards some gossip that can help with a trade. At the end of the day though, that's a tough gig, because you have to convince someone to trade through the firm at a higher commission rate than they could do through an electronic platform. At the buy side shop I work at, we almost never do that and constantly look for ways to get research and tips for free (yeah, we are a shitty client, but that's the business). In general, institutional sales has been on the decline for some time, and will probably continue to gradually decline over time.

Another guy I know used to be a sales trader back around 2004 / 2005 at a BB. He had been in the game for about 7 years, and was making ~$750K all in. I'm not 100% clear on the difference between sales trader and institutional sales, but they have some overlap. Basically, he knew nothing about how stocks worked, but would meet clients and drink with them and then follow up with them later to try to drum up commissions.

It can be quite lucrative if you're in a hot market and have some large accounts that you have a rapport with. Doesn't really suit my personality, but could be a good fit for someone who is outgoing and loves to BS.

Jan 12, 2012
Ravenous:

I'm not an expert on this topic never having worked in sales, but I know some people who are long-tenured institutional sales people and we have rapped about it a bit. One woman I know who has been in it for about 10 years and has a pretty good book makes about $400K in a good year at a small regional shop. It's commission based, so its variable. She basically pushes analyst research to clients and repackages it, but doesn't really add that much value other than getting someone's attention IMO. She does attend some conferences once in a while though, so maybe she forwards some gossip that can help with a trade. At the end of the day though, that's a tough gig, because you have to convince someone to trade through the firm at a higher commission rate than they could do through an electronic platform. At the buy side shop I work at, we almost never do that and constantly look for ways to get research and tips for free (yeah, we are a shitty client, but that's the business). In general, institutional sales has been on the decline for some time, and will probably continue to gradually decline over time.

Another guy I know used to be a sales trader back around 2004 / 2005 at a BB. He had been in the game for about 7 years, and was making ~$750K all in. I'm not 100% clear on the difference between sales trader and institutional sales, but they have some overlap. Basically, he knew nothing about how stocks worked, but would meet clients and drink with them and then follow up with them later to try to drum up commissions.

It can be quite lucrative if you're in a hot market and have some large accounts that you have a rapport with. Doesn't really suit my personality, but could be a good fit for someone who is outgoing and loves to BS.

Thanks man. That was pretty helpful.

Jan 12, 2012

Obviously this doesn't mean anything.

But I personally know a guy who went straight to Sales at Lehman Brothers after undergrad, and was absolutely killing it. 2 Bedroom huge Apt in the city to himself. Was 26.

He got fired in 2008 when Lehman went down, and since then he's been traveling the world (and not staying at cheap hostels), no joke. Never got back into the game...has just been spending money for 4 years.

Jan 12, 2012
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