jpps1

I would assume first-year associates or newly-minted MBAs make nearly twice that?

mahras2

lol. Analysts make 60K+ easily nowadays. The average package is 55K base+10K sign in. Look at vault.com as they have much much more reliable information than on here. Plus in many places the first year analysts can pull of 20-30K bonus if the year is good. So 100K+ isnt at all unheard of.
And no the burnout rate is high becasue the job is mentally, physically and emotionally streneous. LOL even if they just stood around half the day......of the usual 90-100 hour work weeks you would be standin up for 45-50 hours a week. Thats about almost as much a full time worker works. And when you have to do meaningless chores is M&A and corpfin. that does get on your nerves.
If you wanna eat what you kill do S&T at a BB, prop trading at an IB or a top prop firm or work at a hedge funds. There are people at 26 who make 1M+ year in fixed income markets. Also some of the top hedge funds can give a comp package that is really high. Think 140K first year.

haithman

Citadel son? lol this thread actually was pretty funny...

shyboy13

I know about 3 people from USC undergrad who were recruited at Goldman Sachs this year and their starting salaries were 55k. That, of course, does not inclued bonuses.

mahras2

Yep 55K is the running average on "the street" for this year. Its supposed to changing to the upside next year but its probably a rumor.
GS usually gives 10K sign ins like the rest of the BBs. So that 65K right there for you.

haha citadel is good.

plmok

mahras, Can you explain what type of work a prop trader does or someone at hedge funds? What type of backround is best for one of those jobs?

mahras2

Prop trading or propriety trading is trading the capital of the institution itself. Basically say goldman has 500 million in revenues. What it would do is have the prop traders trade that 500 million for gains. Nowadays, in the post web boom era, prop trading is making the most profit for ibanks. (not sure but i think its like 30-40% of the income). Prop traders work with the rhythm of the market and usually employ tech analysis but some use fundamental analysis for the more long term positions. You have t show that you have skill in trading. Let me put it this way......education isnt the top 5 most important criteria in trading. The field of trading is much more level than that in M&A whom I really consider to be prestige whores. Prop traders usually have some experience but some make it in due to their experience.

Hedge funds are like prop trading firms but they take other people's money. Think mutual fund with a twist. Currently hedge funds have very few restrictions so they can probably employ just about every trading strategy you can possible think of. However, this will probably change as the SEC are blaming hedge funds for some of the problems in the economy now. Hedge fund traders apply a lot of arbitrage positions. They take advantage of inefficiencies. Thats why many hedge funds are based in latin america, europe, or asian positions. Lots of bond arbitrage and mergers arbitrage is also used. To break into hedge funds out of school you should definately be at the top schools. Think Chicago, Harvard, Wharton and Michigan. Actually thats it. Most traders come from those schools. Hedge funds like computer majors and math majors because arbitraging is HIGHLY quantitave. However, economics is very well represented.

To sum it all up if you are good at trading you will love prop and hedge funds because hours are better, less of an hierarchy and more excitement. But if you aren't good and think you cant withstand the pressure stick to slave work....errr.....i mean corp finance. Good luck.

VTBoy

These people make good money. Does IB require an MBA.

patientlywaiting

guess what guys?! i'm going to do an internship in edward jones investment firm! i'm so excited. my teacher told me investment bankers make beaucoup d'argent. they not only get paid a salary, but they get comission too.

esrajay

Congrats patientlywaiting

creative_name

i get the feeling that the lifestyle/salary of i-banking is much like law, but more emphasis on math... would this be an accurate comparison?

AceRockolla

dunno, lots of differences.
lawyers- much more respected, also more hated, from surveys a lot of lawyers are unhappy in their profession, not as much money here as in i-banking, also lots of law fields, so it all depends.

i-bankers- lots of money here, not much of a life, math skills depend totally on the job, most don't require any math skills, just perceptive minds or a type-a personality, i've heard in i-banking you're going to meet a lot of sleaze bags(even more so than in law)

the best thing to do to get a take on the profession is actually talk to some bankers, and read up on it. there are lots of sites online about i-banking, and Michael Lewis's book Liar's Poker really gives a great insight on i-banking in the 90's

perspicacious

What about the differences in compensation between different types of i-bankers? How does starting and long term compensation differ between S&T, M&A, and corporate finance, ect. ?

xjis

wow. somebody dig up the 4 year old thread. lol

cbreeze

Go to undergrad Wharton where over 40% of the graduates get into IB when the economy was doing well 2005-2007.