Investment Banking Post-MBA pay

Hi,

I have applied to B-School for 2019 enrollment. I am interested in either working in management consulting or IB. I noticed on managementconsulted.com that they published 2019 management consulting salaries and MBB post-MBA salaries shot up a decent amount.

Has anyone heard of anything like that happening in IB? If not, typically when this happens, does anyone know how long it takes for Wall Street to catch up to management consulting?

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Comments (48)

Jan 23, 2019

Base salary is higher for MBB, but total comp is usually higher in IB. Bankers regularly get 100k bonuses (& more) as first year associates, on top of a 150k base. Post MBA consultant bonuses range from 30-50k, maxing out first year comp just north of 200k. Banking is also known to be an industry where comp accelerates quickly as you progress from associate to VP, widening the gap over time.

That said, the hours and lifestyle are considerably different, and make the IB pay worth it / not worth it to different folks.

Jan 24, 2019

Exactly. Right out of MBA, you're making maybe 25-50k more than your MBB counterparts all in (significantly helped by the bonus).

By year 4, you're making $200k more than your MBB counterparts.

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Jan 29, 2019

Hell yes you are! And hopefully you've only lost a few years off your life from sleep deprivation.

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Jan 29, 2019

Is the 100K bonus guaranteed or is it only reserved for top performers (top 10%)?

Thanks for doing this.

Jan 29, 2019
Silver and Blood:

Is the 100K bonus guaranteed or is it only reserved for top performers (top 10%)?

Thanks for doing this.

Not guaranteed, obviously. But most, if not all, MM / BB / EB will pay an AS1 a 125k+ bonus (on top of 150k base) for mid bucket. Top bucket should be around 150k+ (300k all-in)

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Jan 30, 2019

I remember looking at this couple years back and just checked again.

WSO's own report says median of 225k all in for associate. 150 base and 75.

Way I thought it was IB top performer kills it but on average it's not that differtent from consulting. But the no one plans on being the average...

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Jan 30, 2019

Median bonus of $75k for associates is way too low, even if you are just talking about first year associates.

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Funniest
Jan 30, 2019

butthurt consultant

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Jan 30, 2019

Yep, way too low. Probably skewed by people putting in $0 and only reporting salary, or people working at small boutiques / lower middle market firms.

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Jan 30, 2019

If there are too many people putting in $0 for a bonus, median vs Average should be skewed. They are about the same...

As for boutiques, WSO reports separate them between BB data points... It's possible there is some systematic error in how WSO captures the data, but besides that it is confusing.

https://www.wallstreetoasis.com/investment-banking...
Either way, w/e....

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Feb 3, 2019

Unless it's a regional boutique that no one has ever heard of, IB is way more lucrative than Consulting. I'm not sure why you're deluding yourself into believing otherwise.

Jan 24, 2019

People underrate consulting hours as well, in that your time spent away from home is actually rather high. Office hours are one thing, but being on the road or stuck in a random city isn't equivalent to having more time off work.

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Most Helpful
Jan 24, 2019

My friends who do it say the hours are 8AM - 10PM Monday through Thursday, 8AM - 6PM on Friday, and then random catchup work on Sunday as needed. So consulting has ~70+ hour work weeks. Better than banking, but not by much.

Factor in travel as necessary, and you get a life that's not too far off from banking with a little bit less pay.

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Jan 24, 2019

Thanks for sharing this. What is the post tax comp differential in Banking vs Consulting assuming middle bucket as A1?

Jan 24, 2019

If you end up doing DDs (not uncommon) hours are not far away from IB. Been there, done that.

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Jan 24, 2019

Another thing to consider with MBB is that there are much less spots in top tier cities (eg New York) compared to banking

I know many ppl would strategically submit applications to Tier 2/3 cities in MBB rather than their first choice city in order to improve their chances

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Jan 29, 2019

Do you know if IB and Consulting salaries and bonuses vary by city as well? Are SF and NYC going to pay significantly more than Atlanta or Dallas - other than to account for cost of living?

Jan 24, 2019

In my MBB base salary is the same once you join. Further increases are according to performance. City is not a driver.

Jan 30, 2019

IB salary is the same across cities as well

Jan 29, 2019

Is the pay the same in Houston for Oil and Gas as those other cities or are you only referring to major cities having the same pay (Chicago, SF, NYC, and maybe Dallas)?

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Jan 30, 2019

Yes, pay is the same in Houston. I would also consider it a "major city" (fourth largest in the country)

Feb 19, 2019

Jefferies is the only shop that has a separate bonus pool for Houston, so analysts can expect to be paid like associates, associates can expect to be paid like VPs, etc. But it comes at the cost of being the worst sweatshop in town.

Jan 27, 2019

I think the MBA class of 2018 started with $150k/year for BB, up from $125k. I only have 2 data points for EB, both of whom are $160k for this incoming full time MBA class.

As far as the internship goes, I heard GS is weird this year. They're still offering $125k prorated for the summer even if full-timers from the class above are getting $150k once they graduate. Everyone else seems to be offering the same prorated salary as the full time position.

As mentioned by others, though, bonuses are a lot higher in banking for comparable performance.

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Jan 28, 2019

The famous "GS discount" in full-effect. I've heard that GS is able to pay relatively lower as compared to other BB/EB's due to their stellar brand name (though normally thought that this discount was realized in the bonus and not base)

Feb 3, 2019

I've heard of this "discount" happening at the Analyst level, where it's realistic to target those PE/MF/etc. exit opps, but for post-MBA associates, who are technically recruited to be career bankers (even though major attrition still happens), shouldn't the Goldman Discount be less severe? Genuinely curious.

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Jan 28, 2019

Great point; hadn't thought about it that way, actually. But you're right, it definitely should be less severe

Jan 27, 2019

For post-MBA full time, they're the same as peers. They were all $125k and are now at $150k. I have no idea why they're nickel and diming interns, they might lose candidates over saving $5k over the summer per intern

Jan 29, 2019

Maybe a little less severe, but even post-MBA folks put a lot of value on the GS name. Exit opps are a consideration for everyone since everyone knows its tough to stay in banking long term. And since exit opps are so varied post-MBA (i.e. you could easily end up in a non-financial industry) there is a lot of value in having the most widely respected finance name.

Feb 3, 2019

Gotcha. I guess that makes sense. Any idea what Assoc. bonuses at GS were for Mid Bucket performers?

Jan 29, 2019

Don't know what they were, but I definitely wouldn't be sweating it. I've known plenty of people at GS over the years and none of them leave because of the 'discount.'

Jan 28, 2019

Can confirm this is accurate. For 2019 summer I know for a fact that MS JPM CS Barcap Citi all pay 150k prorated, while GS still pays 125k

Array

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Jan 28, 2019

GS and RBC are still at 125k

Jan 28, 2019

Baird now at a flat 175k for all associates.

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Jan 29, 2019
RedKingg:

Baird now at a flat 175k for all associates.

How's that structured? Big gap in bonuses (e.g., 100k for A1 and 200k+ for A3)?

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Jan 24, 2019
AspiringDegenerate:
RedKingg:

Baird now at a flat 175k for all associates.

How's that structured? Big gap in bonuses (e.g., 100k for A1 and 200k+ for A3)?

Interestingly, in Canada, all the big Canadian banks keep associate base the same for all years, but move the bonus up. This includes RBC btw.

Jan 28, 2019

Top first year associates got comped just shy of $300 so assume the same all-in for next year with less allocated towards bonus.

Jan 29, 2019

Interesting. So this is even for A2 and A3's?

Jan 24, 2019

Yup - RBC base in Canada is $120k from A0-A3, with bonus going up around ~$40k/year. All the other big 5 were 90-100 base but BMO recently moved up to 120 as well. Not sure about the rest. I'm guessing RBC will bump Canada salaries when they bump the US as to not create too much inter-company salary arbitrage (guys moving from RBC Toronto to RBC NYC etc to get a large pay bump)

Jan 29, 2019

Sorry, meant for @RedKingg and Baird

Feb 19, 2019

Good luck with that. Canadian companies, especially those in Vancouver and Toronto don't give a damn about global competition. They know how saturated labor supply is and will utilize it to their full advantage. Been doing that for years and people still pour in and pay millions for homes/condos.

KC

Jan 28, 2019

RBC NY pays 135k for the summer (2019)

Array

Jan 29, 2019

Can anyone confirm BofA?

Feb 11, 2019

BAML is at 150k with everyone else in BB minus GS. Highest paid right now is Guggenheim at 175k and bonus structure for mid level being 100%, top performers bonuses are north of 120%. Evercore 160, Moelis 170. This is all for A0/1

Feb 11, 2019

Interesting, thanks. Where are you getting those figures?

Feb 11, 2019

Currently a first year at MBA. These are all figures from this past recruiting cycle.

Feb 3, 2019
Feb 18, 2019
Feb 11, 2019