tetrishead

fixed

baseballnerd

if i work two years in investment banking then go get a MBA from like Harvard where would I stand in the chain if i went back into the business? would i be a MD or still be a analyst?

futurenyustudent

You'd be an associate. You typically do that for 3-4 years, then you go up to vice president, do that for 5-6 years, then sometimes you go up to director, and sometimes to MD. Assuming, of course, you don't burn out within those 8-10 years.

CamaroLover

^^^But you aren't guaranteed getting promoted right? I mean, obviously if you're a genius and are helping the company a lot, you'll get promoted faster, but if you're below average it's not guaranteed.

megaman123

There are no guarantees in any private industry. If you work hard and prove to be a valuable asset, then you;ll be compensated accordingly with promotions/higher salary etc. If you want guarantees, you might be better off looking into public positions ( public as in government institutions) and even then a lot still rests on networking and people skills.

CamaroLover

Yeah I figured that but I was just thinking whether a big percentage would become director or MD but the time they're 35 using the numbers he gave which I thought was a really young age.

futurenyustudent

I think about 1% of the analysts at any given bank become managing directors. However, the only thing I'm willing to guarantee is death and taxes.

lynda

MD to analyst ratio's usually around 1-10, given the turnover ratios in this industry I'd bet on the # on analysts becoming MDs to be about the same ratio.

do remember that the analyst that doesn't follow the corporate track and make it to MD aren't necessarily worse off than MD. jumping to PE shops, hedge funds, or other buyside are all nice exit options available to analysts

smitty541

can management consultants make the same money that people in IB do out of college??

Majayiduke09

No, because while the salary is comparable, the bonus for 1st year management consultants usually pales in comparison to 1st year IBD analysts

CamaroLover

Is iBanking, is the average age for someone retiring younger than most professions?

smitty541

so the two salaries are pretty similar?

how big a difference in the bonuses would you guess?

tetrishead

It's dependent on too many factors, consulting is too big a field to try and average out some numbers by.

Oftentimes a bonus in the financial industry will be larger than the yearly salary, but normalized for hours worked most in the industry will probably see wages this year that are less than a multitude of other fields. Bonuses can be tied specifically to a persons performance, to a groups performance or to a divisions performance--but the most important is always the overall performance of the firm, and people are going to be doing poorly unless they had a preexisting heavy focus on commodities. We're in a recession. Any idiot can make money in an upmarket, this is going to be a difficult year for a lot of people who thought they were good at what they do.
The turnover rate for analysts is undoubtedly much, much higher than the turnover rate for MD's. It's probably more likely to be 100:1, and if you factor in the people that get weeded out of training programs it's got to be much higher than that. Then factor in associates, presidents or less important directors and, if you get through the application process and become an analyst, you're probably looking at 5000:1 odds, if not worse. Associate isn't guaranteed, much less a position as high as MD.

Coño

I like all this talk about the workers in this business, but what about the people who own the investment banks like Goldman Saachs? Who are they are how much are they making?

futurenyustudent

Go to sec.gov and look up Goldman's definitive proxy statement (Schedule 14A). The C level executives' compensation is public record.