IBD with great hours but terrible pay thoughts?
I'm an ECM associate 1 in London at a boutique. My pay is terrible for IBD, I make £70k base plus 50% bonus as an associate 1 compared to my flatmates at other BBs and MM IBs who make £105/110k base plus 100-150% bonus (they're also associate 1s) so they earn more than double me for the same role.
You're probably thinking f*** that why am I still here and the answer to that is the hours, my firm has a great culture. Everyone says long hours and weekend work is required for IBD but it really isn't.. it's just because of douchebag seniors.
We have:
-
no weekend work, I've never worked a weekend since joining
-
no working past 7pm unless it is deal related
On average I work 8am to 7pm Monday to Thursday and 8am to 5pm on Friday's so I earn around £105k for around 55 hours work on average per week whereas my friends earn around £250k for the same role but doing 80-90 hours a week at their BB/MM.
Of course, the future prospects should be considered so knowing in a few years my friends will be on £350k+ once they're a VP and will most likely only be working 70 hours a week at that level vs me who will most likely be working the same 55 hours but only earning around £150k at the VP level at my firm.
Which would you prefer? I don't know whether to lateral or stay.
The numbers you're suggesting for your friends arent realistic at associate 1. Associate 1s generally aren't clearing £200k even in top bucket at BBs. At VP, even top bucket VP1s at the top paying BBs arent clearing £350k. Just look at the Arkesden report to see this. Regardless you still make less. I'd honestly prefer the less work if you're happy to be a career banker tbh.
Damn London's harsh
”Comparison is the thief of joy.” – Theodore Roosevelt
Your making £100K+ all-in with great hours when ECM is piping hot. IMO you can always lateral to BB.
You're smashing it with that WLB/Comp mix. Have a look through some posts on this site - WSO is the prime example of a lot of top BB guys saying they're leaving the industry because hours are horrendous.
You have the best of both worlds. Save and invest some of it and enjoy the good life
I agree. With £70k you have a very comfortable life allowing for lots of travel as well, while you can invest your bonus for future benefits. Don’t sacrifice your WLB.
Are you willing to trade your ‘freedom’ for an extra £100K a year? It's not for nothing that analysts and associates stop en masse, it's just not worth.
When you already have a good financial income, which I think you definitely have, the costs on your mental health of the extra hours worked will very likely far outweigh the benefits that the extra income will give you.
“Happiness deferred is happiness lost, so enjoy life now”
OP - im in a v similar boat.
at a coverage group for a mid-tier large balance sheet bank (think BNP/WF/HSBC/CACIB) earning £72k (+50% bonus) as an ASO1 but have good hours.
8-6PM, never work weekends, get to take time off whenever reasonable.
Very similar boat. Big balance sheet bank as well, coverage group. Tbh I'd rather work 80 hours a week for a lot more $. Right now averaging 50 hours a week.
Corp Dev sounds like it
How is COL in London? That plays a role when deciding an answer imo.
High - but £70k translates to roughly £3,800/month and you can get a nice place to rent for £1,000-2000/month so you're good honestly.
Even better if you're sharing with a partner who earns
Yea that's a bit low. In my 4th year (after I left BB) I went to a MM/big organisation's M&A division (whatever you want to call it). I was on $120k base + around $70k bonus, But that was like 10 years ago. I always left at 5:30. So if you're on similar pay to me 10 years later, that's pretty low. Wouldn't be too worried about career prospects. If you really wanted to make money, you'll find a way. I probably make more than most MDs in M&A before 40 these days. Definitely higher than all Ds (let alone junior chump like VPs) who are similar age than me, if not multiples more. And I work my own hours
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