Bank Tellers make more than IBD analysts (Hourly)

I don't understand why you all brag about how much comp you make. As a a finance major this seems like simple math:
On call 24/7/365 so you are working 24752= 8736 hours

Assuming avg all in comp ~ 140k we have hourly salary = 140k/8736= $16.03

But you have to pay taxes due to that salary (while bank tellers don't)

So now assume a 30% tax rate

Adjusted hourly wage = $11.21

This doesn't even include opportunity cost of health, etc.

Meanwhile Bank tellers make $13-$15 an hour.

So my question is why do you all brag about high comp when your comp is low? Does the prestige motivate you to do IBD? What is it about investment banking that makes it hip?

 

I looked into it and you're right. However I don't think I'm entirely wrong still. Because investment bankers and bank tellers lie in different tax brackets (and NYC taxes the rich more heavily) I think my claim may still hold (or the salaries or close). If you could provide rough estimate of your tax percentage and we had an investment banker weigh in it would be interesting to see.

 

Sorry all of the IBs you applied to didn't think you were smart enough, sport.

I come from down in the valley, where mister when you're young, they bring you up to do like your daddy done
 

In other professions time you are on call is paid time. It's frequent in med for doctors to be on call on weekends so they can make MORE money. They don't get paid based on whether they are actually called into the hospital/work or not, the pay is derived for being on call.

 

Even with your insane assumptions of working literally 24/7, bank tellers still make the same post-tax per hour as a first year analyst. Also, last time I checked I don't pay my rent "adjusted per hourly rate".

This can't be a serious post.

 

24/7 is not an insane assumption. As I mention above in other professions time you are on call is paid time. And to say you are not on call 24/7 would be inaccurate. How many times has your MD interrupted you in the middle of the night to change formatting on PPT. What about that PTO that you never get? And how about weekend plans/ dates being cancelled due to last minute work?

 

I started to type a response but then realized OP is probably too dumb to understand why his argument is flawed...

 
Funniest

OP please post again in the future to tell us which bank you are working for, so that I can short it.

Never discuss with idiots, first they drag you at their level, then they beat you with experience.
 

Your original post actually is incorrect, and you proved it in your explanation. You said that Bank Tellers make more money and then go on to say that analysts make $140k. You then boil it down to an hourly rate, but that has nothing to do with total compensation, just the rate at which its accumulated. Your post is wrong. Analysts make more money in total, and yes they work more hours. You make $112k less per year than an analyst with your cushy 9-5 earning $14/hr.

 

I see a lot of you are using an exponential growth argument. However attempting to use VP comp to back up your argument has some issues. Most people leave after 2 years as an analyst so those who make VP are few and far in between. Bank tellers have solid exit opps as well (F500 finance, loan officer, etc. esp if you have a UG degree). Also most of you end up going to B school to get those "exit ops" so thats another $100k in tuition + 2 years opportunity cost of salary which is at least $200k. This wipes out 1-1.25 years of IB analyst salary. While tellers have developed intrapersonal skills dealing with customers and have lateraled over you have to go into more debt to get a good position.

 

There is a risk of automation but as I mentioned above with a UG degree you use it as a stepping stone to lateral to other finance careers. It wouldn't be a lifetime move. That's why I'm comparing it to analyst salary as many people here use IB analyst as a stepping stone.

 

Compensation and hourly rates are different comparisons.

If you used your hourly rate comparisons and asked people to pick a job based on the hourly they would likely pick the higher hourly rate,

If you asked people to pick a job based on total compensation, they would likely pick $140,000 per year than $31,200.

IB still has higher comp, just a lower adjusted hourly rate according to you.

"yeah, thats right" High-Five
 

I've edited the OP so that it reflects the hourly component. So my questions still stand:

So my question is why do you all brag about high comp when your comp is low? Does the prestige motivate you to do IBD? What is it about investment banking that makes it hip?

 

This is either a troll or the dude is literally retarded and hence will make the perfect bank teller. Even if we grant the poorly laid out assumptions, no one is coming to banking because the analyst pay is the greatest thing ever. It's an entry level job at the end of the day. They come for the advancement opportunities and the comp scaling, which are far beyond anything a teller or any hourly employee will ever hope to reach.

 

You can't compare hourly pay to salary pay by counting all the hours in a year.

For a strict financial comparison, it'd make more sense to financialize the opportunity cost of working more than 8 hours a day from a net earnings perspective.

From a strictly hourly pay comparison, just use 80 hours a week or whatever you think is right (basically double the tellers pay).

From a work life balance perspective - the value of lost time is different for every individual.

This also loses long term benefits. E.g. if you bank your extra pay over the teller for five years, then become a teller, what is the long term impact less the negative impact of the short term "loss" in terms of hours. Or, more likely, bank [x%] of your pay for five years and then take a six figure 9-5 job.

This model is busted bro.

 

Many of you are using 'bank teller for life" as a flaw to my assumptions. However if you have a UG degree in the bag, this is simply wrong. There are plenty of exit ops for a bank teller. Your intrapersonal skills/dealing with customers is valued in this business. Powerpoint and Excel are used anywhere in this business. The next career a bank teller would lateral to would use these skills. Hence to think Investment banking provides a skillset that can't be found elsewhere is absurd. At best you learn how to be the greatest kiss up to your boss.

 

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