Why do people care so much about analyst compensation?

Why do people always ask about analyst compensation at banks? Most places pay close to street, and an extra $20,000 now is absolutely nothing in the long run. When you consider the exit opps from banking, it seems ridiculous for analyst pay to have any relevance in the decision making process. I understand that student loans are a major issue, but there aren't massive differences in compensation at decent banks.

 

Tiering also makes a difference in terms of what exit ops are open to you. The money doesn't make a big difference, but it matters in a lot of ways.

If you bust your ass and don't make the same amount as the next guy, it will probably make you feel like shit.

Some HF and PE won't interview you unless you were top bucket (some exceptions for certain banks)

 

20K is alot of money, and over 2 years you're talking about 40K. I understand what you are saying, but you are also assuming that everyone is going to be a career banker or have a similarly high-paying profession the rest of their lives, which isn't necessarily the case.

Or you could put it this way: assuming you spend 80K on living expenses, a salary of 120K vs 100K is the difference between saving 20K and 40K a year (excluding taxes).

 

Speaking from personal opinion, the year end bonus isn't really publicized anywhere, so in comparing an Analyst's job in New York City to other jobs it is important. The cost of living in NYC is so much higher than many other major cities, and as a result a 20K difference in salary makes a difference.

I know in my case I was considering another job in Washington DC. Without information about the year end bonus, the defense consulting job in DC was equally attractive. While money isn't the be all and end all of the job search, it can help differentiate jobs, so asking in a forum like this can help some people ease the pressure of asking their recruiters.

 

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