Regional Compensation Differences

depends on the firm, but supposedly not for bulge-bracket IBKing

Unfortunately true...the guys in Atlanta, Houston, Minneapolis, etc. make out like bandits while those of us in New York can barely save anything until the bonus hits.

Yep. I've got friends in Atlanta (where I'm from) making their 60, living in luxurious apartments and driving expensive cars.

The tradeoff is that they go nowhere; there's no mobility. They'll buy their homes, move up the ranks, and retire in Atlanta. Start in the provinces, stay in the provinces.

You might in Chicago if you're at UBS/CS, though..

cost of living in NYC is so much higher than a place like Atlanta that even if the bonus is cut in half you are coming out ahead in Atlanta. again, though, you're in Atlanta instead of NYC.

Hey, go easy on Hotlanta...that's my hometown! But alas, the assertions stated above are largely correct.

And for what it's worth, I have no intention of staying in New York forever. Great place to be when you're 24 and single, but I'm not sure I could stomach being here when the family comes along.

whats wrong with being in a regional bank? You work less hours on average than in NYC, you get to own a house instead of renting a redicliously expensive apartment, you get a much better work-life balance. You can actually have a family.

Mobility? I don't think its a problem, I see no reason why someone with 1-2 years of experience in Atlanta coudln't land an analyst/associate position in NYC.

And the pay difference is correct. Lets say you make 60+10k base + 30K bonus for Atlanta, and 60K bonus for NYC.

Thats 100K vs 130K. But in Atlanta you can own a good house for lets say 2000 per month and in NYC for 2000 you get a 1 bedroom apartment that you rent.

But lets say you decide to rent in Atlanta, for 800 you get to rent something that would cost 2500 in NYC. Thats a difference of 1700 per month or 20.4K per year. Which more than compensates for the extra 30K(before taxes) that NYC guys get.

So pay wise after we adjust the cost of living is the same, but once we take into consideration that they work less hours...bam Atlanta guys get paid more.

Granted NYC has more prestige...but once again when we adjust it regionally...in NYC an Ibanker is nothing special, in Atlanta they are hot shit.

The big, global banks don't pay differently based on what city you're in (at least when you're comparing cities within the U.S.). It may be more equitable if they did (based on a uniform standard of living), but I have never heard of that occurring. In nominal terms, you're essentially compensated the same across the board.

In real terms, of course (which is what we're talking about here), you simply can't afford the same lifestyle in New York that you could in a cheaper city.

Anybody who's experienced the contrary, please let me know.

Although I have heard that Bulge Bracket in HK pays a small housing allowance too.

Although it is true that the standard of living in Atlanta is much better than NY in terms of purchasing power, I do not believe that Atlanta would be the place you want to start your career as a banker for the following reasons:

Deal flow: You want to be as close as possible to the action is as an analyst/associate and doing deals. NY, being the headquarters for most banks would give you deal flow. Regional banks, apart from SF where they execute many tech deals, just don't.

Exit opportunities: While there is nothing impossible in life, coming from Atlanta and wanting to go over to NY would be tough. Most people would assume that you have 'weak' IB experience because you don't do the level of deals that are done in NY.

Mobility: Coming from NY gives you options. It is always easier to move down then to move up. A NY experienced banker can always go over to Atlanta to be its regional head. The other way around doesn't happen.

Prestige: Linked to the idea of deal flow and the general impression of NY. NY is where the action is; it is where the best and the brightest congregate - the nation's financial capital. Coming from Atlanta as a banker honestly doesn't impress the banking community. If there is a caste system in banking, Atlanta will be way below (no offence, but its true).

Lastly, I feel that if you want to do banking, why would you ever want to go to Atlanta? It's a job that requires experience and much learning and why would you want to learn from anywhere else but NY?

all provide good experiences to start off with. It might not be NY, but sure beats Atlanta, Minneapolis, Charlotte, etc. SF is the place you want to be if you're interested in tech. Houston for energy/power. LA has no special industries, but UBS/CS/HLHZ/Jefferies all have great reputations out there. GS/UBS/CS all have great reputations and execute deal flows autonomously out of Chicago. I know many friends (went to Illinois) that have started and still working in banking in Chicago. They live their for personal preferences and have had great careers.

LA's gaming groups are strong. Vegas is only an hour's flight away.

You've been comparing Atlanta and NYC, but what about a city with a sector concentration like energy in Houston? Is there a big pay/prestige difference?