2011 Investment Banking Analyst Bonuses: Is the World Slightly Less Flat?

Banks seem to announce bonuses later and later each year, and for good reason: with the economy in worse shape each time around (OK, maybe things improved slightly in 2010?) no one wants to be the first to commit to real numbers.

And while the US and Europe came very close to the brink of bankruptcy over the past year, banks themselves remained afloat – so they had enough money to award bonuses.

The good news is that even Citi and UBS were able to pay bonuses this year, and that my predictions a few months ago were on the low side.

But the bad news is that the actual numbers weren’t too much higher – and they won’t be much better next year, either.

The Cold, Hard Numbers

2011 Investment Banking Bonus Predictions: Is the World Flat?

The World Is Flat was released in 2005, but the title applies perfectly to this year’s investment banking bonuses: just swap in “bonus” for “world.”

While we saw the apocalypse and bonus meltdowns in 2008 and 2009, 2010 brought us recovery and higher bonuses.

The economy was better, banks were hiring again, and we had crawled our way out of the recession… or had we?

If this year’s investment banking revenue is any indication, that “recovery” was overblown – because this year’s numbers will be flat, flat, and more flat if my magic 8-ball and Excel spreadsheet are even half-correct.

From Analyst Monkey to King of the Jungle MD: The Investment Banking Hierarchy

“This is not a fraternity house,” my staffer explained as he hauled me into a small conference room.

“Some of the MDs have complained about how messy your desk is, so clean it up.”

Genuinely curious, I replied, “Were you referring to the empty Red Bull cans or to all the papers too?”

Not a good start to your 3rd week on the job.

I told this story to a few co-workers afterward and they all laughed and responded the same way:

“He’s lying, a bank is exactly like a frat house.”

They were right – just like a fraternity, there’s hazing, a hierarchy, and certain rituals you must go through to advance.

While this site has been analyst-focused in the past, today you’re going to learn all about this hierarchy, how much you get paid at each level, how the work differs, the average age range, and the possible exit opportunities.

And if you’re curious about hours please stop reading this site right now.