The new reality of Wall Street pay: Nine years to clear $500k
How much will you earn as an investment banker working in M&A or equity and debt capital markets for a US investment bank on Wall Street?
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Results to recruitment firm Prospect Rock Partners' bonus survey suggests you will earn a lot, but you will have to put the years in.
Prospect Rock's reckoning for salaries, bonuses and total compensation at US investment banks on Wall Street is shown in the chart below. Over a ten-year career in the industry, as you go from analyst to senior vice president, Prospect Rock says your pay will proceed from $159k to $591k in total compensation.
This is generous, but it's not exactly crypto wealth overnight. Investment banking will make you rich, slowly. The big money at US investment banks only comes if you stay beyond senior vice president level.
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Prospect Rock also broke out differences in pay for mid-ranking bankers at US versus international banks on Wall Street. As the charts below show, US banks pay more, but not that much more.
Prospect Rock managing partner Meridith Dennes says international banks are more generous on salary and less generous on bonuses than US banks and elite boutiques. This creates a discrepancy in pay that widens at senior levels. If you plan to stay in banking for over nine years and you want to maximise earnings, you should therefore choose your seat with care.
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