by Brian DeChesare Comments (26)

Investment Banking Hours Exposed: Will “Protected Weekends” Save You, or Will You Still Toil Away for 80 Hours per Week?

Investment Banking Hours

Complain to anyone outside the finance industry about investment banking hours, and they’ll respond with the same few questions each time:

  • Why have you destroyed the economy multiple times?
  • Why are you stealing money from poor people?
  • Why are you not in jail?
  • Oh, and now that you mention it… why do you work so much?`

For decades, investment banking and other finance jobs have had a reputation for brutal, 80-100-hour workweeks.

But then banks realized that this practice was literally killing people – several interns have died over the years.

As a result, the large banks began to implement “protected weekends” and mandatory time off for junior bankers.

So, should you still expect 80-100 hours per week when you hear “investment banking hours”?

Or will you get to have (a bit) more of a life?

The Short Answer: Do Investment Bankers Work Weekends?

Initiatives like protected weekends have shifted the hours, but they haven’t changed the total amount of work that must be completed or your total time in the office.

You might not have to work on Saturday, but you might work all day on Sunday and even more on weekdays.

These policies haven’t changed banks’ business models, which explain the long hours in the first place.

But these policies also haven’t changed the fact that you won’t be doing “real work” for much of your in-office time.

What Do “Investment Banking Hours” Mean?

When people start bragging about their long hours, you should be skeptical.

It is not possible to do challenging, productive work that requires high levels of mental energy for 100 hours, 80 hours, or even 60 hours per week.

NOTE: Examples of “challenging, productive work” might include writing a novel, coding a challenging algorithm in a software product, or conducting a negotiation with a sharp counter-party. PowerPoint/presentation work does not count, and some financial modeling or analysis might count, but let’s be honest: plenty of Excel work in IB doesn’t require that much thought.

When bankers talk about “their hours,” they mean their time in the office regardless of what they are doing there.

For example, if a banker is at work from 9 AM to 2 AM, that’s 17 hours in the office.

But was he/she doing productive work that entire time?

Occasionally the answer is “yes,” but on most days, there is significant downtime in between tasks.

For example, many days as an investment banking analyst go like this:

  • 9 AM to 12 PM: Read the news and wait for the client to send financial information. The client is late.
  • 12 PM to 3 PM: Do some mindless work processing NDAs for another deal or updating company profiles or public comps (AKA Comparable Company Analysis).
  • 3 PM to 5 PM: Start working on a valuation for a pitch next week.
  • 5 PM to 7 PM: Client still hasn’t sent the information. Get food.
  • 7 PM to 2 AM: Client finally sends the financial information, but it’s horribly formatted. Your VP tells you to fix it and update the CIM and management presentation, which takes several hours.

In that 17-hour day, you did ~12 hours of work, and only a few hours of work that required high mental energy. But you still had to be in the office and “on call” the entire time.

If you “work” 80 hours per week, yes, you’re in the office from 9 AM to 1 AM on weekdays, or from 9 AM to 11 PM on weekdays with a 10-hour day on Sunday.

But you’re also spending a good chunk of that time waiting for information or assignments or doing tasks that don’t require high focus.

Why Do Investment Bankers Work Long Hours?

Investment banking hours are insane for three main reasons that haven’t changed since the 1980s:

  1. Huge Clients Pay Your Bank Huge Fees: When a company is paying your bank $50 million, $10 million, or even $1 million to advise on a deal, you have to do whatever it wants at any time of the day.
  2. Unpredictable Work Demands: Unlike with engineering projects – or even audits at Big 4 firms – it’s almost impossible to use “project planning” for deals in investment banking because the process is random and unpredictable.
  3. Division of Labor Failures: And banks can’t hire more people to reduce the workload because one person has to “own” each aspect of a deal. Multiple people writing a CIM or building a model at the same time would be like writing a novel with multiple authors (i.e., a bad idea).

You could add a fourth reason to this list as well: The culture.

Working long hours to “pay your dues” is deeply embedded into the culture of financial services firms (see our investment banking overview for more on this one).

Even if banks’ business models were to change, long hours in the office might continue because… well, you have to work a lot. Just because.

Here’s a bit more detail on each factor above:

Huge Clients Pay Your Bank Huge Fees

If a single executive at a client company gets upset over something, he/she could immediately cancel the deal, resulting in millions of dollars in lost revenue for your bank.

Bankers sell their time and attention – not a tangible product – and they need to provide it, even if a client calls at 1 AM on Christmas with an urgent request.

If a bank did 1,000 deals per year and earned $50,000 per deal, service requirements would decline.

But that business model would also be far less profitable; it’s why you earn much less in Big 4 advisory.

Unpredictable Work Demands

When you work on an M&A deal, much of the work happens in the beginning (creating marketing materials, presentations, and financial projections) and at the end (negotiating the definitive agreement, arranging financing, resolving last-minute disagreements, etc.).

But in the middle of the process, random events, requests, and problems always come up.

You might get an acquisition offer from a buyer who dropped out but then came back at the 11th hour.

Or maybe your client just missed its earnings, and you need to revamp your 10,000-row financial model.

Or maybe the CEO is having a bad day and he wants to see unnecessary analysis, just for fun.

Other firms that deal with unpredictable work demands, such as web hosting companies and oilfield services companies, handle these issues by hiring teams to work in shifts.

One team works from 8 AM to 4 PM and fixes a website that just crashed; another team works from 4 PM to 12 AM and replaces a part of an oil pipeline.

But that approach doesn’t work as well in banking.

Division of Labor Failures

The problem is that each deal is different and requires client-specific knowledge.

You normally set up financial projections one way, but you had to modify rows 95-110 for one client because of an issue that came up in an email exchange with the CFO last year.

Or, there are 17 versions of the company’s internal projections, and you’re using each version in different slides of the management presentation – and only you know the logic behind the sequencing.

There’s no “instruction manual” because so much of the process is ad hoc.

You can come up with rough guidelines, but you can’t describe all the steps universally and comprehensively.

There might be thousands (or tens of thousands) of documents for a single deal, and it’s impossible to “learn” everything quickly.

That’s why the person responsible for the original analysis and marketing documents tends to keep working on the deal.

Senior bankers also want to ensure accountability by designating one go-to person for each part of a project.

If a VP wants to change a model, he/she does not want to ask 2-3 Analysts – just the one person who’s in charge of it.

Investment Banking Hours: What’s Really Required?

Nothing above means that bankers necessarily have to “work” (AKA “be in the office”) for 80-100 hours per week.

Plenty of all-nighters and long hours come from poor planning and poorly managed teams – and there are concrete ways to improve the process.

For example, bankers could avoid many all-nighters if they did a better job qualifying the work requirements.

Do you need a 100-page pitch book for an initial meeting, or would a 10-page summary work?

Do you need to scrub the numbers and adjust for non-recurring charges by 8 AM tomorrow, or will the client not even look at it?

Investment Banking Hours by Position

You do not always work 80-100 hours per week in investment banking.

Hours tend to be lighter in groups like Equity Capital Markets since deals and workflow are more predictable.

You won’t have much of a social life on weekdays, but you also won’t be staying at the office until 2 AM all the time.

More broadly, in-office hours are a bit more predictable in “public markets roles” (equity research, hedge funds, asset management) where you follow companies instead of advising on large transactions.

Also, even if you’re in a “deals role,” the hours are often lighter when the deals are less complex (e.g., early-stage funding deals in venture capital).

As you advance in the investment banking career path, your hours improve because the nature of the work changes.

For example, Investment Banking Associates work a bit less than Analysts, and VPs and Directors work less than Associates.

A Managing Director or Partner won’t stay in the office until 4 AM editing font sizes in a presentation; he/she might still work 60 hours per week, but most of that time is spent in meetings, on calls, or traveling to meet clients.

Finally, a few boutique banks offer significantly better hours.

This one is the exception rather than the rule, but there are some small banks where bankers work 40-50 hours per week and still close multiple deals per year.

They do that by using existing contacts and relationships, working on only inbound deals, and avoiding all pitches.

They still have to complete marketing documents for clients in sell-side M&A deals, but they avoid pointless administrative work and fake deadlines.

The senior bankers at these firms don’t necessarily care about maximizing revenue; they aim to earn enough without killing themselves 24/7.

Investment Banking Hours London

We also receive a lot of questions about whether or not investment banking hours are “better” outside of New York, in places such as London, Hong Kong, and smaller, non-financial centers.

The short answer is that they’re not necessarily much different in the major financial centers (London and HK) because team sizes are still big, and large/important deals are done through those offices.

Weekend work is arguably a bit less common in London, and some people claim that all-nighters and even staying past midnight are less common, but the lifestyle won’t be a dramatic improvement over NY.

People online like to argue that the hours are even more brutal in Hong Kong, but that is pretty tough to prove conclusively (who collects the data in a scientific way?).

Your hours will likely be a bit better if you’re in a smaller city, such as one in continental Europe or a market such as Houston in the U.S.

The key phrase there is “a bit” – yes, you might get home earlier and not have to do quite as much on weekends, but you still won’t have much of a life as a junior banker.

How to Survive Investment Banking Hours… with Protected Weekends?

To their credit, firms have acknowledged the insanity of investment banking hours and attempted to improve working conditions for junior bankers.

But junior bankers have criticized these schemes for several reasons:

  • Some policies are a joke. You get 2 hours of “personal time” per week? What are you supposed to do with that?
  • When a live deal heats up, these policies go out the window.
  • These policies have shifted more work to the Sunday-Thursday period.
  • Being free from Friday night to Sunday morning isn’t a real weekend off.

These criticisms are valid, but they also miss the point of these policies.

The point of a “protected weekend” isn’t to reduce the total hours you work, but to make your schedule more predictable.

A long time ago, bankers were frequently pulled away from dinners on Saturday nights or had to come in for “emergencies” that turned out to be false alarms.

These incidents are less likely as a result of these new policies.

And that does make a difference: Having an entire day to rest and recharge – even if it’s just once a month – helps a lot.

Even if you’re just responding to emails, being “on call” 24/7 wears you down and leads to burnout.

So, even though banks haven’t reduced the total number of hours you work, they have made positive changes.

You’re less likely to work consecutive 130-hour or 110-hour weeks now, and you’re less likely to die on the job.

With better management, banks might be able to reduce the average “in-office time” in the future.

But keep your expectations in check: It will never be a 40-50-hour-per-week job.

That wouldn’t even be investment banking.

M&I - Brian

About the Author

Brian DeChesare is the Founder of Mergers & Inquisitions and Breaking Into Wall Street. In his spare time, he enjoys memorizing obscure Excel functions, editing resumes, obsessing over TV shows, traveling like a drug dealer, and defeating Sauron.

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  1. Hey Brian,,

    Im 17 and I live in Melbourne, Australia.I would like to study a double major in financial maths and computer science instead of Commerce majoring in finance. Is that a good option?

    1. In Australia, people who get into IB usually do dual Law and Commerce degrees… so you should probably do that as well if you want a similar role.

  2. Avatar

    Hey Brian,
    I am a soon to be graduated student with a BBA in finance, while also wrking towards my CFA. I wanted to ask what steps can i take to point myself in the direction of IB since i don’t go to a target school (i am in Canada).
    Thank you

    1. It’s going to be very, very difficult in Canada because the market is small, there aren’t many openings, etc. Please do a search on this site for “Canada” for more on that one. Your best bet at this point is probably to aim for a Master’s in Finance degree in the US or UK or some other, bigger market.

  3. Hi bryan a
    I am in mid 30s I used ti be q corporate lawyer for 9 years the I got a mba and a 2nd degree in finance
    last job was at a real estate company doing project managemnet work
    I would like to breake into banking
    Maybe asset managemnet how difficult will it be

    1. At this point, quite difficult because IB generally doesn’t recruit people with your level of experience. Maybe go for something real estate-related, such as RE PE or something else related to investing.

  4. Avatar

    Hey Brian,

    I work in public sector bank in india,
    With more than 3 years of experience.I want to make my carrier in the field of Investment banking, will CFA alone help me, ir should I pursue MBA also. I am a grad and around 30 years of age.
    Kindly guide

    1. No, the CFA alone will not help you. The Indian market is also nearly impossible unless you went to one of the top IIMs. So, move to the U.S. or Europe and complete a top MBA.

  5. Avatar
    Raghav Setia

    Hey Brian, your articles and mails are really awesome and do provide a great insight to the industry and it’s workings. I’ve studied Computer Science in my undergrad here in India. I’m like really determined to make a career in finance, particularly IB. I’ve got an offer from Baruch College at CUNY for MS Finance starting in spring 2020. I’d really appreciate if you could care to share your feedback on it.
    Ps: I’ve done a professional Financial Modelling course.

    1. I don’t know how much of a “target” school Baruch is for investment banking roles (not much, I believe), so I’m not sure it’s a great idea. You really have to look at the placement stats for MSF programs closely before committing to anything:

  6. Hi Brian,

    I graduated with a bachelors degree in finance 6 years ago. I worked in a proprietary trading firm for 2.5 years and since then have not had any ties to finance. I know that the IB route is long past me but could you provide any recommendations to get back into the industry? I’m looking at different financial analyst roles.

    1. I think you would probably need an MSF or MBA degree to have a good shot at this point (but it also depends on what you’ve been doing since you left the prop trading firm). Maybe you could go for corporate finance roles at normal companies, but you might have too much experience at this point.

  7. Avatar

    Hey Brian,

    Should we ask the interviewer what the working hours are?

    Are there smart ways to bring this up?

    I don’t think I can last in a sweatshop so rather just be upfront with them ask them.

    Thank you.

    1. It’s a really bad idea to ask about this, as it will signal that you do not want to work long hours. Even if that’s true, find out via other methods such as online reviews, networking with people who have left the bank/group, etc.

  8. Hello Brian,

    What boutique investment banking firms offer 50-60 hr work weeks?

    1. On a consistent basis? Probably none.

  9. Hi Brian, I am a recent grad of a semi-target school. I have never had too strong willingness to do banking, AM, other than being influenced by people around me. I always perceive myself as being more entrepreneurial and saw lots of people who are not in finance made their fortune other ways. I had an internship at middle office at BB but didn’t join full time. I have started my own company for the past year, but it didn’t go as I expected even though we achieved some successes. I am considering to go back to finance now, but have no clue where/how can I start over again??

    1. It will be pretty tough, but it’s plausible if you’ve only run your own company for a year… see:

  10. Hi,

    I am going to be applying for a full time role for a VC division for one of my city’s larger employers after working in advisory for about 18 months. i interned at a PE firm for about 2 months in the summer in between my sophomore and junior year. the problem is that the internship was good, but i wasnt exposed to modeling or analysis during my time there because it was only 2 months. i mainly screened for industries and analyzed companies. how should i translate that onto my resume?


    1. Write about the bigger picture and how your work contributed to deals closing and don’t go into the specifics of what *you* did that much, instead focusing on the eventual results of your work. And then practice building models for the deals retroactively so you can speak to something in interviews.

  11. Avatar
    Stefan Huber

    Great article Brian!

    I’m a sophomore at a semi-target in NYC, currently doing PWM at a BB. I recently purchased your Networking Toolkit + Interview Guide in an effort to land an internship at a boutique IB for this summer. Do I still have a chance at landing interviews, and hopefully an offer, for this summer, or is April too late to do so? And if it’s not too late, around when do boutiques stop looking for interns?

    1. Thanks for signing up! It would be tough to win interviews/offers at this stage because most banks finished IB recruiting about 6 months ago. There are still some boutique firms that might be hiring, so it is worth reaching out to them to see. You might have better luck going for small private equity firms (see one of the case studies in the Networking Toolkit) because they’re often more open to hiring interns year-round and don’t follow as rigid a schedule.

  12. Avatar
    Jonathan Ekambi

    I am doing a Pre-Test on a questionnaire to capture data on: DETERMINANTS OF PERFORMANCE OF MERGERS AND ACQUISITIONS IN THE FINANCIAL SECTOR IN KENYA. Can I post it to you to help or guide me to where I can get this help. I am really earger to bring something new in the industry in the area of mergers and acquisitions.

    1. We can’t help with homework assignments, but if you have a question relevant to the topic of the article, feel free to ask it.

  13. Hey Brian,

    As always, thank you for great articles. You mentioned how hard it is to divide labors, which makes sense. But, at the same time, I see so many big deals split across four or five big banks. Why do they do that? Are these “mega” deals truly that difficult for one or two banks to work on themselves? Or is it more politics (or trying to keep them competing for lower fees)?

    1. It’s probably a bit of both, plus the fact that on most of those deals, the banks do overlapping work. A company often hires multiple banks so the banks cross-check other banks’ work, and the company ensures that each adviser is doing the right things.

      So if 4-5 banks work on the same deal, they’ll do many of the same tasks, and it’s not as if each bank is assigned to a different aspect of the deal. That’s actually even more depressing when you think about how many people are replicating work…

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