Elite boutiques vs banks: Earn an extra $400k in 5 years
Boutiques don’t pay spectacularly - until you’re promoted, a compensation report has found.
The report, run by careers consultancy and resume reviewers GettingTheOffer, received over 675 responses, 98% of them from investment banking professionals in the US.
GettingTheOffer found that whilst pay sat in a narrow band for all junior investment bankers, with second year analysts at both bulge bracket (BB) and middle market (MM) banks earning within 90% of those at elite boutiques, there was a significant disparity with seniority.
Third-year Vice Presidents (VPs) at elite boutiques earned 37% more than those at a BB, on average, and nearly 50% more than MM bankers.
The report found that Managing Directors (MDs) took the brunt of recent bonus cuts, due to their compensation being most tightly linked to deal activity. It also found that bankers at regional offices (those outside of New York and San Francisco) took an even larger hit - an additional 10-15%.
“Banks paid and promoted who they wanted to keep,” the report said, and the result was a very large range of bonuses being paid out.
The results of the survey broadly correlate with previous reports, including the 4,000-person compensation report produced by popular “finfluencer” Liquidity.
You can respond to eFinancialCareers’ own salary survey here.
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