*Exposing Investment Banking Salaries* (The ACTUAL Analyst/ Associate SALARY Explained!)


So you may have wondered what an investment banker actually makes what’s their total compensation what is bonus especially at the likes of goldman sachs morgan stanley jp morgan well if you want to find out more i’m gonna go for a full breakdown of both analysts and associate salaries in an investment bank what’s up guys welcome back it’s your boy seoul aka the

Bodybuilding banker for those of you who are new here i post content center around fitness and work in an investment banking job and essentially how i balance both the corporate job with a fitness lifestyle if you want to find out more about me check out my website below at www.thelifeassault.com or tune in to my instagram which is at underscore life of saw as

You guys know financial institutions are split into multiple departments you’ve got investment banking retail banking commercial banking and private banking and in this video i’m mainly going to focus on investment banking and in particular the front office division remember guys in my previous videos i’ve actually broken down the three main divisions in the bank

You’ve got your back office you’ve got your middle office and you’ve got your front office and generally front office are the revenue generating parts of the bank and they therefore command the highest salary and earn the most money so before i dive in to the numbers i think it’s really really important to get some context as to the different institutions um so bold

Brackets these are the likes of goldman sachs jp morgan and morgan stanley these are some of the banks that i have a really really big brand name and a well-known uh brand internationally now these banks actually not all of them but actually on average pay slightly less than their elite boutiques and the reason being is because they have such a big brand name they

Know they’re able to pay slightly less and you’ll still have some of the most top talent still coming to work for these brands so elite boutiques the life of lazard centerview evercore rothschild their pay and compensation varies a lot more widely than a bulge bracket and the reason being is because there’s no standardization between the firms and secondly generally

These are private sperms and they have a smaller number of individuals and they also work on a select number of high-profile deals so if you imagine with a smaller number of people and a large deal there’s less people to share the funds between and generally you get paid a greater conversation than you would at bold bracket bank so there are two main factors which

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Determine in investment banks overall compensation the first is actually out of the control and this is how your team or division perform so essentially if your team if you’re in a sector same say health care and you’re bringing a lot of deals with the teams bringing a lot of deals you’re going to get a piece of the pie and generally you’re going to get a larger

Bonus if your team is performing well now the second one is a lot more individualistic and that is how your individual performance is assessed by your seniors and by your peers so investment banking as you know is a very high performance culture and what that means is generally you are reviewed by your peers and your seniors annually and what happens is you know

They have different buckets you have a first bucket a second bucket and a third bucket and these are basically the top bucket and middle bucket and the bottom bucket and essentially the bonuses are allocated based on your feedback of how you perform throughout the year so essentially the bonus which i’m gonna go on and break down later is split into three buckets

This varies by bank essentially you have the top bucket the middle bucket and the bottom bucket and essentially depending on how you perform throughout the year you are allocated a bonus structure in one of these three buckets if you want to know what vice presidents directors and managing directors get paid please give me 200 likes and i’ll post the video they get

Paid a lot more lucratively so that would definitely be one to watch one key formula i want you guys to remember is your overall compensation as an investment banker is not just your base salary it is your base and your bonus gives you your overall compensation now i mentioned bonus a bit earlier but just to make sure you guys understand bonus is discretionary

And it’s based on a number of different factors as i mentioned earlier but you can get anything of 50 of your base to 100 and even over 100 of your base so i think that’s really important now to get into what you guys all been waiting for so if you are an analyst working at a bulge bracket bank or even a boutique and you’re coming straight out of university

You will earn a base salary of fifty thousand pounds yeah guys fifty thousand pounds coming in as a 21 year old straight up university now remember guys this is just your base salary this doesn’t take into account your bonus bonus is discretionary and like i said it’s based on different factors and it varies by bank by bank but generally at a bulge bracket you

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Can get upwards of 50 percent of your base salary so this gives you a total compensation of 75 000 pounds coming in as a first year university however at elite boutiques you can get slightly more so you can get maybe all in a hundred thousand pounds as a 21 or 22 year old coming out of university so generally this goes up uh 10 a year you know in your first three

Years as an analyst or two years in some cases so let’s say over a three-year analyst program your base and that’s just base i haven’t mentioned bonus will be around 60 000 pounds now for associate generally your base is around 90 000 pounds and if you do associate for three years um you will earn by the end of the third year as a base alone 120 000 pounds now

Remember guys this is just for analysts as you go up from analyst one to analyst two and three your salary will generally go up around ten percent so by the end of your third year if you are an analyst free or if you’re not associated yet you will get sixty thousand pounds base and of course your bonus will go on go up incrementally key thing to remember guys is

Your total compensation is made up of your base and your bonus now at a bulge bracket let’s just say barclays for example you may get paid 50 000 pounds as a base and you can get 50 pays a bonus in your first year so in total you will earn 75 000 pounds and again as you go up the ranks your bonus improves and is also dependent on your individual performance now at

A loop boutique say you may get a higher base so around 55 000 pounds and you may get you know 45 000 pounds as a bonus so your total compensation as a first year at elite boutique would be a hundred thousand pounds so i’d love to hear what you guys think so far i mean i think that’s a pretty good deal that’s quite a lot of money i looked at the official national

Statistics and i believe in april 2020 the average salary was around 31 000 pounds so if you’re looking at a 30 investment banking analyst you’re earning anything between 75 and 100 000 pounds i think that’s a pretty good deal it only gets higher guys so if you’ve been an investment band for two years or in most cases three years or more you become associate and

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That’s more of a senior level you have more responsibility and you’re actually responsible for checking a lot of the analysts work and also reporting to the seniors such as the vp and managing directors as a result they get paid more and so their bonuses can be anything between 50 and 100 000 pounds and it goes up as you go up the different levels so you have a

Social one associate to associate free and then if you get promoted you go to vice president now if you think of associate salary as a first year and you get 90 000 pounds and then you get another 60 000 pounds on top you’ll get in total 150 000 pounds now as you go up let’s say your salary goes up 10 all in as an associate let’s say by associate free you can

Get close to 250 000 pounds but guys there’s one small catch generally as your salaries go up and your bonuses goes up investment bankers do or investment bank should i say do a really clever thing where your payments are deferred now what this means is you are paid a certain proportion of your bonus now and a certain proportion at a later date and taking a step

Back i think the rationale behind that is because it’s a a large sum money and b incentivize people to stay and also there is an option for you to actually exercise stock in the company and enjoy part of the company’s growth so that’s another option you can have as you get more senior and have more leverage in an investment bank so thank you guys for sticking to

The end of the video i hope you enjoyed it now if you want to hear more especially about you know vice presidents directors and managing directors who get paid a lot more please please please give me 150 likes or even 200 would be great make sure you comment subscribe and share let me know guys what you want to see in the videos what you want to see next i know

It’s your boy the life of seoul and i’ll catch you in the next video

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