Investment Banker Salaries Vs. McDonald’s: Hourly Pay
“I’m talking about liquid. Rich enough to have your own jet. Rich enough not to waste time. Fifty, a hundred million dollars, buddy. A player. Or nothing.”
-Gordon Gekko, Wall Street
Everyone knows you make tons of money in investment banking, right?
That’s common knowledge – but what no one ever thinks about is how much you make per hour.
Yes, making six-figures as a 23-year old is nice – but not if you work 120 hours per week to get there.
So how much do you make on an hourly basis – and is it more than a McDonald’s employee?
The Best of Times…
For entry-level investment banking analysts, the best-case scenario happened way back in 2007.
Base salaries were $60,000 and bonuses for “top-tier” analysts were $90,000, for a grand total of $150,000 in compensation. Not bad for a 23-year old.
On average, investment bankers work around 90-100 hours per week in their first year.
That might be a bit high or a bit low (!) depending on the bank and group, but we’ll go with it for now.
With 52 weeks of work per year (there’s no vacation, thank you very much) and 90 hours per week, you would have earned $32.05 per hour ($150,000/(52*90)) in 2007.
At 100 hours, that drops to $28.85 per hour.
Even if, hypothetically, you worked 140 hours per week every single week and somehow survived for 1 year, you’d still be at $20.60 per hour.
The Worst of Times
Of course, long before 2007 and immediately after 2007, bonus numbers fell substantially.
In 2001-2002, for example, Analysts were lucky to get $10,000 bonuses – and sometimes they just received lumps of coal or IOU notes.
And they still worked like crazy – only they created pitch books constantly rather than working on actual M&A deals.
A $10,000 bonus and $60,000 salary implies $14.96 per hour at 90 hours a week.
So you’d be in administrative assistant range, but still not quite at McDonald’s level.
But what if you did absolutely nothing but create pitch books for 140 hours per week, every week, and got a bonus of $0?
$8.24 per hour.
Ouch.
What Happened After 2007 and Beyond
In the midst of the financial crisis, bonuses dropped quite a bit from 2007 levels – though not quite as much as people expected.
In 2008, the top-tier 1st year analyst bonus was down to $65K, and in 2009 it was down to $45K.
While these numbers do represent a huge drop, you’d still make significantly more than a McDonald’s employee on a per-hour basis.
…Vs. McDonald’s
At the time of this article, the hourly rate of a cashier at McDonald’s is $7.56 per hour according to Glassdoor.com.
So the only way you’d actually make less than you would at McDonald’s is if you earned a $0 bonus and worked at least 153 hours per week.
Which, um, isn’t possible.
Or Could You?
Hypothetically if we had deflation and investment banking base salaries dropped and you simultaneously got a ridiculous workload, and McDonald’s wages rose, then maybe you could make more at McDonald’s.
Here’s a handy sensitivity table showing you all the possibilities:
And yes, I know Steve Schwarzman makes a lot more than $41. 21 per hour – I just put his picture there because it seemed appropriate.
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I love this post.
It is interesting to see the numbers. I use to see people who tracked their hours each week religiously then ran all kinds of analysis on it at the end of the first year. Most were very disappointed with the hourly rate they saw.
Yeah the hourly rate is pretty depressing. The interesting thing is even as you get much higher up, the hourly rate never becomes mind-blowing. The average MD, for example, makes around $1,000 per hour… that’s really good, but not 100x better than analysts or anything.
Still, McDonald’s has far worse exit opportunities. :)
Well I take it you are not an MD or know anything about it.. MD’s do not averge 1000.00 per hr. They may average 100,000 per year or just over depending on the field of study. But look at what you’ve said.
At only 40hrs per week x 52wks = 2080hrs a year.
2080hrs x $1,000.00 per hour = $2,080,000 per year. Thats two million eighty thousand dollars per year. The truth is more around 100,000 per year to 125,000per year. Which comes out to be,,,, wait for it..
100,000/2080hrs= $48.07 per hr
125,000/2080hrs= $60.09 per hr
Also keep in mind this is based on only 40hrs and many MD’s work a lot of over time so with a lot of over time and only 100-125,000 a year he average hourly rate drops.
So MD’s average $48.07 – $60.09 per hr AND there are some outside these numbers, above and below.. People have been led to believe MD’s make a huge salary, but the ones that really are making the money are the hospitals,, doctors are just employees at the hospitals and clinics..
Now this is not that shabby but its a big drop from 1,000 dollars an hour… So please calculate before you say things that are silly…
This is a finance site, so MD here stands for “Managing Director” not “Medical Doctor.” The average Managing Director makes significantly more than the average Medical Doctor.
So you may want to read the site more closely and be more aware of the different terms that are being used. Managing Directors might make $1 million+ depending on the year, so that explains the hourly figure.
@ JD
In regards to your misunderstanding of what an MD is referring to in this article, you yourself said it best, so I’ll just quote you with one minor change: …”So please READ before you say things that are silly….”
LOL
LOL
lol – made my day
What world do you live in? 99% of medical doctors make 200k per year or more unless they are uter and complete failures. The published numbers are bullshit surverys filled out by the lowest level primary care physicians… and even they make 150k min. Go ask any neurosurgeon or plastic surgeon or cardiologist and if they don’t like you will find they make closer to 400k / year.
Now of course, we were talking abotu managing directors, not medical doctors. Those, my friend, make EASILY in excess of $1M.
dumbass!
Don’t forget, McD’s workers get paid overtime after 40 hours.
Depending on the location, it could be 1.5x or 2x hourly pay!
Argh*&^#*%@#$
GoGators: Very true, and yet another reason to consider McDonald’s vs. banking. :) Tax-wise it might be better too…
Ha overtime at McD’s is a joke. As in nonexistent. The managers are sure of that so they get their quarterly bonus. McD’s = Teen Slave Labor.
Back in 1994, FI analysts were paid $34k and $5-10k bonus for 95 hour weeks.
So, about $8/hr, or less than a McD employee who would get overtime.
$34K and $5-10K bonus? OMG. Did anyone even do finance back then?
I think an important thing to consider is back than, most of the investment banks, if not all, were privately held partnerships. Every dollar saved was an additional dollar to the partner profit pool and individuals were carroted on making the admission process. NOW, the banks are public and well, you are playing with other people’s money.
Yes it was sarcasm
No McDonald’s (entry-level) employee made $8/hr in 1994
After adjusting for a few errors: i.e. in 1994, McDonald’s pay was more like $4.50, in 2001 IB Analysts were starting at considerably less, but let’s peg it at $50,000, and in 2007 IB Analysts are being re-org’d so some only receive half their base and no bonus.
After making those adjustments, the takeaway is that the spread grew tremendously up until 2007, reversed sharply in late 2007 and early 2008 and hopefully temporarily, and will likely bounce back. For instance, in 1994, burger flipper was making around 50-60% of the IB Analyst pay using the high low estimates above, in 2001 that had dropped to somewhere in the 40% handle, and by 2007 it was just 25%!! So, if you had just saved all your money and skipped that silly 4-year degree followed by an MBA, you’d be ahead (at least at the end of your Analyst program, and especially if you just got re-org’d).
True, the spread has really come down lately. Believe me I’ve thought about employment at McDonald’s if I get fired anytime soon…
Here I am reading all this which I never in my thought in my wildest… (my father is smiling down on these irisheyes!) Now I’m in the know! I’ve been in a union for 19 years, paid all my dues, was a department head making 48,000.00 a year, Janurary 2010 union did not back me and was put to part time, earing only 20,000.00 a year. I am going for the McD management job, I need to pay my way though life! I hate working part time and need to feel satisfied in making money!
Oh no!!! What about models n’ bottles?? You mean you have to be moderately attractive and have game to get laid? Meaning… you can’t spend $300 on a $20 bottle of Absolut and have a coked out model chic give you a few cheap lap dances in VIP and tell you she’s on the rag minutes after last call? Haha. I see something terribly wrong with all of this. First, instead of a coked out model girl with STD’s, I’d go for a fine college girl whose dad is the editor of a major ski magazine. Next, I’d have her buy ME whatever I want. It seems that Investment Banking has become a bastion for D & D fans and avid X Box players. It’s a far cry from the pimped-out, glutinous 80′s.
Yeah things aren’t what they used to be. There are certainly some nerdier people in the field these days. :)
Are you still an investment banker?
Analyst? Associate?
If you get a gig as an Analyst, do you need to do an MBA or MFin or an MFE to steadily move up?
How long does it take to go from Analyst to Associate and up to even higher levels?
How good of a peion do you have to be? What if you’re a bit cocky due to a modest upbringing?
Is I-Banking the epitomy of corporate?…as in cubicle cultures, lame employee parties, lifers??
By the time I’m thirty-five, going in to the game at 26, ceteris parabis, how much cash could I have amassed by the time I’m 35?
How the helllllllllll do you not go insane with such a psycho schedule?
Thanks. Sorry for the ridiculously large set of questions, however, it’s my life and any advice from a bard like yourself is useful in the end….
No I am no longer in the industry.
You “need” no degrees to move up in finance except an MBA can be helpful for senior-track positions, depending on the firm in question (some make you get it, others do not).
Analyst-Associate – 3 years. Higher levels – VP takes 3-4 years, then VP to MD could take 4-5 years or more.
Uh it’s hard to answer your question specifically but if you start at 26, have no outside interests or anything else until you’re 35 you can probably save up $2-3 million.
Not going insane: Well, there’s a reason why I left…
In 9 years you can’t save $2-3 million. 500-800k tops. How does one save 200-300k annually when the salary is nowhere near that?
Um as an Associate or VP you will start making in the mid-six figures on up. Some VPs can make close to $1MM. So much of that figure comes from the last few years when you can pull in $500K after-taxes. If you have no life and no friends, you can save a good amount of that.
I am currently in dire need of outside advice…I am 2 days away from having to make a decision between an analyst position in FIG capital markets at B of A Merrill, and a risk management position at RBS (bear in mind that RBS would be open to having me move to a different group after my first year if I desired…I was thinking loan and high yield as it is the remnants of the lev fin group, this group was originally my first choice but they are not taking on any new analysts this year as all of their summer analysts signed on). My internal battle is essentially does the internal mobility and mentoring/exposure that I will receive at RBS outweigh the name of B of A Merrill that will be cemeted on my resume. I would appreciate your thoughts especially with regards to possible exit opportunities from each of the firms and which position would better prepare me if I had a desire to move towards PE/Hedge funds after my 2 years was up. Thank you in advance for any thoughts you have;.
Um, go to BoAML – no matter what they say at RBS, it’s risky to take a middle-office position there. Capital markets at a bulge bracket bank is a much better bet.
Hey i checked on the BAML website…is the FIG capital markets programme u are referring to the Corporate financial institutions Debt Programme?
How is a stockbroker typically compensated? How would you compare the lifestyle/work week of the two?
Usually its based more on commission even at junior levels. I don’t know much about it but overall the lifestyle, similar to sales/trading, is probably better.
“How is a stockbroker typically compensated? How would you compare the lifestyle/work week of the two?”
Typically a broker is compensated via a commission payout grid. This grid is used to calculate the portion of their gross revenue that becomes their payout. It’s important to remember that different products have different commission schemes, for example, the payout on a FA/VA will be different than the markup on a bond, the commission on a structured note and even a straight stock sale…so it’s a very product oriented process. Also, it depends on how the firm handles trails vs straight commission. Often times, and I know this was the case when I was with Morgan Stanley, you’ll find it beneficial to annuitize your revenue stream. If you do a mix of advisory business with a mix of transactional…you’ll be able to weather the rough times.
As for lifestyle: I know a few people on the IB side. They work extraordinarily long hours which, “would be worth it if I got the bonus I was told I’d get”. The glory of sales/trading is that if you’re making money…well…you’re king sh#t. No one wants to get in your way. The down side is that fact that to get any kind of reasonable client base/reputation, you’re going to have to put in IB hours for the first few years without the IB pay. You’ve got to build a rep while building a client base and manage to eat while avoiding a FINRA violation.
Much like IB, if you ride out the first few years, the rewards are great. Many people don’t, so it goes. Hope that helps.
Ahem, that should read “The glory of it, much like sales/trading, is that if you’re making money…well…you’re king sh#t.”
How does your math work with the record bonuses we’re going to see again in 2009? Not really looking to be that bleak from what i’ve read? 20+ Billion for Goldman Sachs ….
Or maybe not….
http://thehill.com/blogs/blog-briefing-room/news/75459-dem-congressman-introduced-50-tax-on-bonuses
Do partners at smaller PE firms (AUM <$1bn) make millions?
I think it would really depend on the deal exits right?
Even at small firms they still make millions, just from management fees… 2% of $1B = $20MM
Small PE shops usually are much less than $1bn. Try $250-500m for a first time shop!
Look at his original question… he asked specifically about under $1 billion. Attention to detail.
M&I you should pay attention to details… his original quote asked about less than 1 billion not less than or equal to. Perhaps asking for a management average
Hey I answer questions here free of charge when I have a spare moment – due to time constraints I can’t take the time to read through everything in detail and cross-reference previous comments all the time. I attempt to answer them when I can, but sometimes it takes hours and since they answering comments doesn’t add to revenue, I can’t really justify spending more time on it and trying to get everything 100% perfect.
Associate make more than analyst correct? And what would be the salary of an associate after say 3 to 6 years?
Yes. Maybe $500K – $1MM a lot depends on the bank/group
If an analyst’s annual salary is 70k for a 40 hour workweek or roughly $33.50 an hour, with overtime at 1.5 times this rate, averaging 70 hours workweek would the analyst’s potential salary be up 150k? How is overtime factored in at BB banks?
There is no overtime whatsoever at investment banks. You get the same base salary no matter how much or how little you work, and then a highly variable bonus depending on the economy
working 90-140 hours/week? That’s about 13-20 hours/day.
What would a day looks like?
See the Day in the Life / Week in the Life series under On The Job at the top
Are there higher salaries in General Management Degrees vs. Finance (or whatever leads to IB)?Or is it too far fetched to become a CEO of even medium prestige?
Unless you are the CEO of a very large company – think Google, General Electric, etc. – you will not be making more than you would in finance in most cases.
It looks like this article is pretty popular, someone mentioned it in a national newspaper:
http://www.timesonline.co.uk/tol/life_and_style/education/article6832285.ece?token=null&offset=12&page=2 (8th paragraph)
Hi,
i just wanted to ask what would be the most reliable job that will lead to a career in private equity?
how long would i need to work there before i can get into a job in private equity?
and also if i was to work in private equity for several years would that give me the experience to start my own business in private equity and choose successful companies that will make me good money?
thanks…
http://www.mergersandinquisitions.com/private-equity-recruiting-in-2550-words/
Hey M&I,
I have really enjoyed your website. As a non-finance major, it has helped me get a job in the financial industry – but not Investment Banking.
I have a job in the Capital Markets Origination division at Citi but have no idea what they do exactly. The recruiting website lists the following groups:
* Asset Based Finance
* Derivatives Solutions
* Equity Capital Markets
* Financial Institutions Fixed Income Capital Markets
* Global Fixed Income New Products
* Global Loans Capital Markets
* Global Loans Capital Markets – Latin America
* Global Structured Loans
* Industrial Fixed Income Capital Markets
* Leveraged Finance
* Liability Management
* Global Securitized Products
I was wondering if CMO is considered Investment Banking. If not, what group should I consider so that I can eventually get into an Investment Banking position?
In general, a post about CMO and what it is would be appreciated.
http://www.mergersandinquisitions.com/equity-capital-markets/
Yes it is investment banking but it’s different from M&A, see the link here and everything will be explained. If you do a search on the site you can find many topics…
And don’t forget the lovely Government’s share…the post tax hourly wage is what you should be looking at, since I haven’t yet heard of a McDonald’s worker who would work enough hours to get into the highest tax bracket!
At 50% tax rate (in the UK), it makes a difference.
Taxes are different in each country, so they were not taken into account here.
The taxes also come back to your bank in the form of bailouts so the firm doesn’t go belly up due to it’s own stupid mistakes, and you don’t end up flipping burgers.
Haha, in some ways I agree with both of your comments.
Is $18 per hour a good entry level salary for an investment bank right out of the university?
No banks pay on an hourly basis… everything is a base salary + bonus
I am working at an investment bank this summer as an intern and I am being paid hourly with overtime. However, as a full time analyst there is no hourly wage.
I am interning for Wells Fargo Securities this summer in their public finance ibanking division – they pay $19/hour and 1.5x overtime (so $28.50/hour after 40 hours work week). And plus 2k for relocating.
I am not sure how other divisions work, but I know one of the girls who did this internship last summer got paid the same way.
But first year full-time is 60k base, 10k signing I think, and plus bonuses of course. I’m sure corporate finance/normal ibanking is a lot higher…
I think you should focus on being thankful for having a summer internship in the division because not many have this opportunity. I wouldn’t worry about pay in your summer internship. Think about pay when you’re choosing between various offers for your full time role.
I am grateful – I was just giving numbers to show some banks do pay hourly for interns, but not full-time. I do not know if it is a new thing or firm-specific or not.
Thanks.
I am not 100% sure. It may be a firm specific thing; perhaps readers have better suggestions.
Would it be safe to say that it would be a mistake to want to become an Investment Banker just for the money? I am not passionate about finance, but I am confident I can do the technical things needed to succeed. There are not many other jobs in which you can leave after 2 years and be on the “track” to mid-high 6 figures and beyond jobs. Even if one didn’t do that, they have an opportunity to stay and hopefully become an MD and make a low 7 figures. Of course, there is the sacrifice of at least 60+ hours of work for the rest of your life, but the pay is extremely high. Do you have any thoughts or comments for this situation?
I noticed you left finance and are an entrepreneur right now, did you leave because you didn’t enjoy the work and didn’t care about the potential salary with the combination of insane hours?
Thank you
The work gets boring after awhile so unless you are 100% driven by money it’s hard to stay motivated. Also after a certain point it doesn’t really matter. I left because I was getting bored and didn’t want to sit in an office 80 hours per week – life should be an adventure.
$150k? this is for a 23-year half-assed pot-head,straight out-of-almost-ivy-league college (where he was placed thanks to the daddy’s connections) 1st year zero-experience clown.
ok, life sucks, but so is an army basic training, and 1st year on many other jobs.
but what about 2,3 5 years down the road? do they still work 100 hours/week for $100k comp? no way! they either become those MDs, or VPs, or if they have ANY talent – move to HFs or get MBAs and start giving out orders.
in most jobs you go from $20 to $30-$35/hour in the 1st 5-10 years of your career. on Wall st, those who actually have talent can and do retire after 10 years, with 8-figures in the bank. 5 years of 100hr/week + 5 years of 50-60hr/week and retire multimillionaire vs. 45+ years of 40-hour work while living paycheck t paycheck? i’ll switch with any wall st punk any time!
Your numbers are so far off that I don’t even feel like wasting my time correcting them (read the rest of the site); suffice to say that very few people have $10 million after 8 years of working on Wall Street, mostly because they spend most of what they earn. So yes it’s better than most other jobs but it’s not as great as you just made it sound.
Does a specialized (orthopedic for example) or investment banker at a bulge bracket bank more money? I think specialized surgeons can make about $350k per year.
I have no idea because I don’t know anything about medicine, but overall the ceiling for bankers is way higher. Normal Managing Directors make in the millions, whereas the other type of MD does not unless he’s the best doctor in the world at a specific type of surgery.
By the way, way did you leave banking?
You can read my story in this book: http://www.amazon.com/4-Hour-Workweek-Expanded-Updated-Cutting-Edge/dp/0307465357
Wow this article is an eye opener..I graduated in 2008 and worked as a Oil and Gas Geologist in Canada. I kinda felt I was making less then my friends who were in banking.We didn’t talk about money much but it appears we made about the same ammount and I had 8 hr days with 1hr lunch weekends and about 6 weeks total vacation per year.
I would say that they make a bit more now though..
FYI wellsite geos in Canada make crazy money for their time. out of school a kid can make 9k per week during the boom for what ammounts to 30 hours of real solid work per week.
Hey, I’m from Australia.
I use to work at McDonalds and Minimum wage was 21 an hour. I was on 24, and AUD and USD are about the same.
Also are you sure investment Bankers get paid that much?
Minimum wage is higher in Australia than the US.
So an analyst makes like…maybe 100K a year to start? Maybe? Which is ok, condisering the hours you have to put in too. And after three years you could move up to an Associate, right? What would be a usual, average base salary for an Associate? Also, during those 2-3 years as an analyst, does the base salary move up? And final question, what are the risks of getting fired due to a not so good economy? Sorry about all the questions…
http://www.mergersandinquisitions.com/investment-banking-promotions/ Associate make more like $100K base and $100K+ bonus, base salary for analysts does move up. http://www.mergersandinquisitions.com/investment-banking-salary/
Lol. Love the sensitivity table. How about a football field comparing hourly pay in IB with McDonalds and maybe a couple of other professions for good measure? Help visualise the min/max overlap.
Don’t really have the motivation at this point – this was written years ago, and I’ve since lost interest in the topic.
Just lookin for a bit of advice if anyone can help.
I’m still fairly young, studying my law/finance degree, grades are average purely because I’ve put a lot of work into a full time job and business. I will however look at doing the SAA stockbrokers program.
I communicate extremely well, generally in writing and verbally. I have a lot of mathematical potential which I really learned of during high school years.
I’m looking at moving into stockbroking, would this be a viable move and whats the best method to break into such a position??
thanks in advance
and also, is it worth attempting to find such a role considering I’ve only maintained average grades?
yes doesnt matter as much for brokers
Sure you can do it, just get internships at brokerage firms. http://www.mergersandinquisitions.com/traders-vs-brokers/
Hello M & I,
1. First off, I want to say thank you for answering all my questions in an honest and trustworthy manner. It’s great that I can express my opinions, concerns, and ideas in an open way and get some solid answers.
2. My second question is, at the risk of sounding stupid or lazy, what’s your name? (You mention the 4-hour workweek, etc.; but, I can’t find out your name there).
3. I’m essentially being offered a job as a portfolio manager at Merill Lynch. Interestingly enough, this 2 year sales training program pays me a $50K salary in D.C. Can you tell me the pro’s and con’s of taking this job?
(i.e. is it some exposure to finance, will it get me into an MBA program, is it something to pay the bills and get experience to later make my way into finance, etc.)?
Thanks
1. Thank you
2. Brian (I’m Nicole btw, I work with Brian)
3. Exposure to finance – yes. Getting you into an MBA program – yes but if you want to get into the top schools, you might need more interesting experiences to write about in your essays. Yes can pay the bills. Yes it will allow you to get into other areas in finance – good stepping stone w the name as well as experience. Cons? Can’t think of any unless you have better offers/things to do w your time
Hi Nicole/Brian,
The only con I would have is that I’m not a good salesperson. I’m the type of person who always regrets buying a product or service I didn’t need.
I definitely don’t want to be the guy to sell a person on a bad product. I’ve read that 80% of managed funds actually lose money, once the fees are accounted for (http://gregmankiw.blogspot.com/2006/07/case-for-index-funds.html).
I just hope I can negotiate the ethics well, as I don’t want to sell people on inefficient services.
Boom sahklakaa boom boom, problem solved.
numbers are true, but story is a bit away from truth.
investment banker’s life is somehow transfered from normal lifestyle to business life style. working over 100 hours per week for a rookie is normal but to put it more precisely, a rookie stays in the office over 100 hours per week. analyst has dinner with boss and colleagues and trust me it takes longer than you eat with your family at home. ppl at investmentbank start dinner around 7:30p.m and finish at 9:00 or sth. after they wrap up and go back to office they stay around to mid-night.
overall, not that bad but you have to stay in office for most of your work.
Not sure what you’re trying to say – you rarely spend 1.5 hours eating dinner, most of the time it’s at your desk and you don’t have that much time. 100 hours is definitely the upper end of the range and not normal as you move up but this feature was just about analysts.
Looking for advice..
I am 26 years old.. Should be finishing my masters in civil engineering focusing on construction management within a couple months.. Throughout the program I have had to take multiple finance courses and have enjoyed it.. I have begun stock trading on my own and love it.. I am thinking about trying to break into finance but am not sure if the career change would be worth it.. I have strong math and communication skills as well as project management skills.. Is there any specific position that I should look for if I do decide to make the switch? Would switching careers make sense at my age? I was thinking of studying for the cfa to use as a stepping stone to get interviews.. Thoughts?
You should look at the banks’ sites to determine which areas you are interested in. Most positions can use your skills because IB isn’t rocket science. If you like stock trading, I’d suggest you to look at trading roles within banks or funds.
You are not too old to switch careers. I’d say go for it if you really enjoy finance. See below for an article which might help you –
http://www.mergersandinquisitions.com/getting-a-finance-job-from-engineering/
Do you enjoy stock trading or stock investing? If the fundamental analysis is what interests you, go for the CFA and use the local CFA society for networking.
That is alright, but anywyas id rather working on a bank than in mcdonals, im a future millionaire, id like to study business management, as well as some economics and law, im 16 yrs old now, but im focused on wat i want, and im gonna get it, if theres someone who owns a company and reads this, and as well is interest in getting this franchise business (me), u can contact me on my working email, which is, labv07@hotmail.com …
Hi,
I am looking for some sound advice. I attended Simon Fraser University and hold a B.A. in Economics and still reside in the Vancouver area. I earned my degree some time ago and became an entrepreneur for many years and have also excelled in the restaurant industry. I am 40 now and interested in a career change into the investment banking industry or mergers and aquisitions. I am not someone who pursued this line of work while in school and nor did I attend a target school. I am interested in helping companies in the fiancial field and earning alot of money for doing it. What should I be doing to get into the field?
http://www.mergersandinquisitions.com/investment-banking-male-escort-in-tokyo/
Hey!,
what can i be expecting in salary if i go study economics at Columbia University, internship at a big investment bank and then take my masters degree at Columbia also?
It depends on which division you will be interning for and which level you end up at in an IB. As an intern, probably ~ USD 80K (pro-rated) a year
Cool cool … Im aiming for trader/analyst. My dream is to become a CEO of an investment bank … Im willing to work as much as it takes and although I hate bragging I am actually very smart when it comes to economics and business managing
I live in Norway, the average business and management worker with a masters degree in my town makes around 170K USD a year. I really want to go study in the US and work there but the pay is just so low compared to here.
ok. Good luck!
Investment bankers may not take vacation, but I’m sure they accrue it, at some point they either take it or it gets paid out. They also get health insurance and a retirement account with a company match. This adds on at least $700/mo more. The investment bankers also have more options if they decide to pursue a different career, the burger flipper less so.
this whole thing is BS. i am a 3rd year investment banker at a bulge bracket bank and do not work 100hrs/week, more like 70 and my pay is well north of what this site implies. if you wanna work at mcdonalds fine by me. you can put on your french fry hat go to work 9-5 then take the bus home and ill keep working 7-7 and get escorted home. thanks ill stick with wall street. and btw, my MD’s bonus alone was 3mill. and anyone whos on wall street knows theres atleast a 2 consecutive week mandatory vacation the firm makes you take with no contact whatsoever to programs or anything.
Hi Brian,
Great article, It’s really made me think of a current decision I’m in.
First I apologize since this is off-topic but I have looked all over google to try and find a relatively simple answer and or opinion. Your site is extremely useful and you seem to have answers for a plethora of questions, perhaps you could answer mine or offer a suggestion?
Over the years I have built up a very strong reputation and good personal relationships with many businesses and helped directors get in touch with other businesses to fulfill their needs. Like really going far out of my way to ensure it’s a perfect match. This has led to only positive results for them and sometimes substantial increase in profits.
I have offered a lot of my time for free consulting to maintain great relationships with some of these companies. My question is of a recent development though. One of my clients is seeking several million (5 to 28mil) with payout in investment capital with 6%-12% per year with upside potential. While one of my clients I am close with occasionally invests many millions of dollars for real estate purchases. They both work primarily off recommendations and don’t work with just “anybody”. They are both highly reputable, been in business for very long, and practically hold a flawless track record but they have not heard of each other. If I do all the leg-work to put them in touch, is it wrong for me to ask the receiving side for a commission or referral fee?
I wouldn’t simply just drop one persons name and tell them to call each other, but I would have to spend time finding out the details, going to dinners, and being a bit of a liaison before putting them directly in touch. It’s also putting my reputation on the line a bit as well. They of course they’d do all the real work of negotiating out the loan/investment. I suppose I am trying to justify asking for a commission or referral fee and if it’s proper. What do you recommend and if you do recommend a fee/percentage what do you think is appropriate? Thanks soo much for taking the time to read all this, I appreciate any advice you can give.
No. I don’t think it is wrong to ask for a commission/referral free. I’m not in your industry so I can’t give you the exact fee but I’d suggest you to talk to people in your industry to figure out the norm/ideal fee
Thanks for the reply! My only issue is that I am nor directly in the investment industry and I only know a handful of investor and I am not sure about asking them as they might become a part of this deal. I am considering about asking for a half percent, 0.005 which I think is quite reasonable, though I don’t want to sell myself short nor be greedy out of ignorance. Nonetheless though, thanks for your response.
Anytime
What do you think of babson college or bentley university for someone pursuing a job in Ib or other finance related occupations
Babson is better I believe. However, I don’t think either are target schools
Logically, if McDonald’s employees made more per hour than investment bankers, then the difference between the average accumulated wealth of investment bankers and McDonald’s employees would be directly related to the difference in hours worked over time.
But it’s not. Retired investment bankers have quite a bit more than 40 times the assets of retired McDonald’s employees.
So there must be something wrong with your argument that socially disadvantaged people actually make better wages than the socially advantaged, eh? Perhaps it’s just that hourly income isn’t the sole factor that creates wealth.
Hourly income is’t the sole factor that creates wealth. Yep.
Most investment banking analysts leave for other endeavors in two years. Once this happens they work less hours, but retain a very high salary. You have to think about the big picture.
Can I just mention that working in a kitchen, any kitchen, is horrible. It’s stressfull, hot, very hot, messy and not very rewarding. I’d imagine banking is a breeze in comparison. Also you mention the hours bankers do, the thing is those hours just aren’t available to a McDonnalds worker even if they did want to do that much overtime. It a stupid comparison to begin with IMHO.
Would you guys say there is much of an age limit to getting into IB? Do you think banks want you in your twenties more than thirties? Or might older be better?
Twenties better than thirties given the hours you work
I made $200,000 last year, with a $50,000 bonus in June, and a $15,000 Bonus in December. Total compensation of this year (2011), $265,000. I’m enjoying it. A lot.
Hey Colin, can you please tell me exactly how you got into that current position. What undergrad did you do? what MBA did you do? did you go to a uni with good connections or did you work hard? Did you work 90-100 hours at the beginning of your career?
You are my idol, and want to base my life of yours if possible, so how you got into your job would be a lot of help. I am in my final year of high school and want to study commerce with majors in accounting and finance at Melbourne Uni (australias best uni) is this a good start? Do you think law/commerce degree is better?
completely ridiculous and retarded comparison. At the end of the year regardless of how mamy hours worked, one of these allows a person to buy a house and the other can just barely survive. Another attempt to make the peasants feel they have some kind of equality with the bazillionaire.
I should also mention, that I work approximately 35 hours/week. And I still made $265,000. McDonald’s workers should not be compared to a investment banker. It is a redundant comparison
Investment Banker Salaries Vs. McDonald’s: Hourly Pay
Thank you, M&I for this wonderful website. This is very helpful. I appreciate your hardwork.
I am a final year MBA candidate in Toronto, Canada taking a peek into careers in Finance. This site has been helpful.
Cheers!
Gerry Som.
Thank you for being a fan!
The rate being paid for a 14 yr old at maccas is yes $8 an hour, but I don’t see too many 14yr old investment bankers. A 19 year old gets paid $22 to flip burgers. Maybe factor that into your equations.
what are the prospects for international students studying in the us for getting a job as an analyst in a BB investment bank. i ask those who work or have worked for an investment bank. do IB’s hire internationals who graduate from a US university? have you seen internationals working in BB IB’S?
Yes they do. However it can be challenging for international students to get US roles in IBs esp with banks which got TARP money (i.e. Citi, BAML) because banks might have restricted sponsoring the number of workers with H1B visa. There are int’l students working in BB – you just have to stand out and find a way to break in – keen competition though
Well at least McDonald’s employees don’t have to feel like turds for sinking the global economy and destroying Grandpa’s retirement savings. They make Happy Meals.
Hi, quick off topic question. How does one get into IB/sales and trading. I am a college senior and I wanted an analyst job at an IB after graduation. im not sure if i have to get into Investment banking or sales n trading. pliz enlighten me on the advantgz and disadvantagz of each
S&T – http://www.mergersandinquisitions.com/sales-trading-equity-trading/
http://www.mergersandinquisitions.com/sales-trading-vs-investment-banking-part-2 -lifestyle/
http://www.mergersandinquisitions.com/sales-trading-vs-investment-banking-part-1 -recruiting/
http://www.mergersandinquisitions.com/sales-trading-resumes/
http://www.mergersandinquisitions.com/all-about-sales-trading/
IB – http://www.mergersandinquisitions.com/get-a-banking-job/
What about the tax rate restatement. Here in london it’s around 40% for an analyst. Maybe 20% for a Mcdonald employee.
I have a question my intention is to work 10years iB, im going to do the MBA next year. I am currently doing actuarial science and i was wondering which has a more rewarding outcome, furthermore i have a fiancee. But i dont blow money i spend like it an accountant. So saving wont be an issue.
Well, I’d presume IB may be more rewarding monetarily though I wouldn’t count on working in the industry if you want job stability. 10 years in IB – that’s a pretty long time, especially in this environment. What I think would really help you? Network with bankers, really understand what the industry is about, and think about whether it is something you want to do for the long term. I don’t think you can plan your career in banking.