Investment Banker Salary

Everyone knows that investment banker salary is very attractive. But in reality an investment banker, though well paid in salary, gets much more bonuses at year end. For example, an investment banker who may make USD 200,000 per annum (many of them do) in salary would be earning about USD 700,000 to 750,000 in bonuses, which is approximately about 4 times his salary. Starting salaries range from USD 60, 000 per annum to USD 170, 000 per annum for graduates from top schools with bonuses that could range from USD 40, 000 to USD 60, 000 per annum and the best thing with investment banker salary is that though the salary remains constant, the bonus increases by roughly about USD 15, 000 per annum. As you go higher up the salaries touch the sky with Vice President’s taking home about half a million and CEO’s taking home anything between USD 1 to 2 million per annum. Now, I am sure there are a lot of people out there who are really interested in how to become an investment banker.

What would you do as an investment banker? From raising money to advisory services, underwriting and brokerage services to research, forex services to asset management –you do it all. But as an investment banker you have three main areas to operate in - Corporate Finance, Trading and Research Analysis. In Corporate Finance you would be dealing with corporate clients – giving advise such as mergers and acquisitions and raising money for them from the equity and debt market. In the Trading business you would be buying and selling securities and commodities while as a Research Analyst you would be analyzing the movement of stocks and predicting their movement.

How do you become an investment banker? To be a good investment banker you will need a strong basic understanding of accounting, finance and economics. You will need a razor sharp mind, quick decision making capabilities, capability to work under pressure and for long hours and an appetite for the latest news and information to predict and appraise. Get into a top business school after your graduation and do your MBA. If you are good, then the doors of investment bankers open. Work is exhausting with 80-100 hour weeks and sometimes nights spent back in office but it all works out when you get your pay packet.

With those kinds of salaries you will naturally laugh all the way to the bank!