Category Archives: become an investment banker

Post-Crisis Pay Scale Shift In Investment Banking

investment banker salary

                Pay scale in investment banking

The post-crisis scenario in the banking sector has produced substantial variation in the financial endowments offered to its employees. The enormous pay scale that has been conventionally assigned to the banking employees has been heftily depreciated. However, the present average scale of the investment banker salary is quite immense when compared to the gross income in the related sectors.

The major part of the financial benefits that an investment banker enjoys comes from annual compensation packages. Compensations are provided based on individual performance and position. The employee is initially recruited as a junior analyst or associate and advances to the higher positions in respect to the caliber and expertise that he/she acquires. The pay scales for the employees vary in accordance with their position in the hierarchical system of investment banking.

Pay scale for entry-level positions

The entry-level positions in investment banking are the designations of analysts and associates. The Analysts in most of the banking sectors acquire a basic salary starting from $125,000 per year. Moreover, they are also eligible for an annual compensation package, which may vary from $90,000 to an approximate $160,000. The Associates are granted with a slightly higher salary scale, which varies from $65,000 to $140,000 per annum. Authentic pay grade analysis sites like the Payscale.com provides detailed data on any shifts in banking sector income scale.

Income scale for higher hierarchical levels

The test of efficiency and perseverance endured to reach the herculean levels of the banking hierarchy is adequately awarded with higher pay scales. The supreme position of the vice-president is accompanied with an average salary scale of about half a million dollars per year. In addition to the basic salary, they also achieve an initial annual compensation package of $400,000 which may extend to one million dollars. Moreover, the annual compensation for managing directors and the head of departments are estimated to reach an astounding range of 2 to 3 million dollars.

annual compensation packages

                   Salary scale for banking professionals

Even after the great financial crisis of the 21st century, the persisting colossal figures of the investment banker salary have created an increased affinity towards the banking profession. The impetus of upcoming graduates towards investment banking has raised the intake criteria. The increasing demand for employees with extensive skills and professional education compel the employers to ensure adverse refinements while recruitment.

The immense benefits that the investment banker enjoys are the result of the intense hardship and scrutiny that they had endured to realize their banking aspirations.

Remuneration Obtained By An Investment Banker

Investment banker salary

                Different investment banker salary

The salary that is offered to an investment banker is quite high. Owing to the responsibilities of an investment banker in the finance field, he gets paid according to his qualification. The investment bankers with commerce graduation get a good scale of pay, whereas those with MBA degree get paid extremely well. Let us check the different pay scales offered to investment bankers.

National Average Salary of an Investment banker

It is the investment banker salary on a national scale that helps to find what an investment banker gets on a yearly basis. As per the Bureau of Labor Statistics, an investment banker who works as an associate in an investment bank or works for commodities or securities, as a sales agent or for financial services, gets a yearly average income of $66900. As per the reports that are published, an investment banker gets an annual salary of about $82000.

 Salary based on type of industry

The investment bankers who get employed in big and reputed banking companies get paid well, and therefore the type of industry in which an investment banker gets employed is a key factor which decides the salary. As per the Bureau of Labor Statistics, the investment bankers who are employed by the intermediation companies get an annual salary of $60200 a year. Investment banker salary in security firms or brokerages comes to an average of about $107400 a year. The investment bankers working for mineral wholesalers and metal wholesalers get an average salary of about $176700 per year.

Salary based on location

Geographical factors can definitely influence the salary earned by an investment banker. The cost of living in one place would be different from another, and hence the salary earned by investment banker vary according to the location. The Bureau of Labor Statistics show that investment banker in Utah earn a yearly salary of $77200. Those who work at New Jersey get an annual salary of about $91700. The investment bankers who are based on Connecticut and Washington D.C get salaries $161000 and $102200 respectively.

Commerce graduation

                        Salary obtained by investment banker

Title of the Job

Title of the job is another factor that decides the salary of an investment banker. He may be a specialist, or sales agent. The salary offered to each and every job in the investment banking field varies.

These are the different salaries that are offered to investment bankers. Make sure that you know well about this before you set out on a career in investment banking.

All About Using Investment Banking Firms

What is investment banking

           Do you know what investment banking

You might have heard the term “investment”, but then what is investment banking? Investment banking involves assisting companies, firms or even individuals in raising capital. This can be done by working on behalf of the client as their agent, and helping in issuing securities. There are various investment banking firms that provide this service.

Let us check how to use Investment banking firms.

Using Investment Banking firms

  • Before making use of the service of investment banker, understand the key functions performed by investment banking firms. Such banks master in the service that they offer, and provide several options to their clients. They help to issue securities or debt, make money through financing, public or private investments. They help the client by providing necessary advice regarding financing, consolidations, acquisitions and other functions.
  • If we take a look at different investment banks, we can understand that they deal with big companies or clients. Hence before you contact the investment banks requesting for their service, ensure that you are eligible or well qualified to utilize their service. If you are running small scale business, you cannot be treated as worthy of hiring investment banks.
  • If you have ascertained that you are well qualified to be an investment banker, study the services of the investment banker that you have chosen in detail. This will let you know their transactions and services. Meet other companies that have dealt successfully with the investment banker of your choice. This will let you know the pros and cons of their service.
  • Choose the service that you require from the investment banker. You can deal with them in a good way and ensure that all the financial transactions are dealt on time. You would find a lot of services offered by investment banks from a menu of the services that they offer. It would be difficult to find an investment bank that offers packaged services.

    Packaged services

               Know more about investment banking

  • Do not conceal anything from the investment banker. You must include all the positives and negatives of your business, so that the investment bank can know about you in detail. Do not embellish your business, and provide them all the information as and when required. Do not miss out any crucial information.
  • Get started if the conditions are agreed to by both. You will find a rapid growth in your business once you commence investment banking.

Now you know what is investment banking. Use it to better your business profits.

Investment Banking Careers

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Investment banking tips

You carry out your studies to get a job. You prefer certain courses that have more probability to get a job in fields like engineering, medicine as well as others. However, if you end up taking a finance degree and if you are looking for a career in investment banking, then it can be tough due to the competition in this sector. It is one of the most popular sectors that offers high packages and better job environments, and therefore the competition is much higher. If you are highly proficient and are willing to shoulder challenges and responsibilities, then you can begin your career in this attractive banking sector. So are you eager to know “What is investment banking”? Read on to learn more.

What is investment banking?

A financial enterprise that offers its services to businesses, organizations or even governments to build up capital by issuing securities like bonds or stocks. In addition, they also give advices for merger and acquisitions and other financial transactions.

How to get the job

The following instructions will help you to attain a job in this sector.

  • You should get a graduate degree in finance or a related certificate from a well-known business school, as without a degree, you can never dream to start your career over here. The hiring managers will clearly estimate your analytic skills and you will be hired based on that.
  • It is an added advantage for you to undergo an internship during your college period or at the end of your graduation studies. Majority of the investment firms demand an internship to test your knowledge and performing skills before you are enrolled to their pay scale. Once you successfully complete your training period, you can start your career over there.
  • Relocate yourself to a city with a huge population, as they have proximity to various investment banking opportunities. New York, Singapore, Tokyo, Moscow, London etc are a few examples of cities with high percentile of investment banking offers.

    ibc

           Careers in investment banking

  • Improve you mathematical as well as analytical skills to higher standards. It is required to calculate and evaluate large amounts in a faster and efficient manner. Else, if you are unable to perform, you end up losing the job.
  • You should apply for all the available opportunities in this sector once you complete your graduation and training period. Completing an internship in an investment firm will ensure you a job over there.

The above resources will guide you to begin your career in this widely attractive sector. Refer classifieds and advertisements in local newspapers for job offers in this sector.

Is An Investment Banking Career Ideal For You?

What is investment banking

          Career options in investment banking

When many of us ask ourselves the question; what is investment banking, we realize that we do not know much about the investment-banking sector apart from the fact that it offers high paying career choices. The services provided by this banking sector is diverse and the nature of work involved occupies a broad spectrum. If you plan on a career in the field or want to become an investor, it is advisable to learn more about investment banking before you enter the field.

What is investment banking?

Simply put, investment bankers provide all sorts of financial services to different organizations as well as government agencies. The services offered include managing, investing and acquiring funds and giving expert advice in investments, acquisitions and mergers whenever needed. Bigger companies with higher financial stakes often keep investment bankers on their payroll to avail financial advice and consults on a regular basis.

Investment banking as a career choice

Many graduates in the management field consider investment banking as an ideal career choice. An entry-level professional in this sector is expected to have a bachelor’s degree in finance or any related subject. The credit papers should include one or more of the subjects such as economics, accounting or business administration. A postgraduate degree in the same field is desirable if you aim for higher positions and a better paycheck.

Career prospects in investment banking  

A career in the Investment banking sector is perfect for the passionate ones. The more involved you are, the higher your career growth prospects in the field. Getting an opening in this sector in itself is a tough task. You might have to start preparing for the same as early as your college days. The major transactions in the investment sector are mostly contacts driven. Therefore, an aspiring investment banker should concentrate on building the right contacts.

Benefits of choosing investment banking as a career 

Financial services

Financial services offered in investment banking sector

Financial benefits involved in the investment-banking career are not restricted to the monthly paycheck. Many creamy layer companies offer a pay package that includes premium medical insurance coverage and yearly bonus based on performance. Other perks include paid holidays and vacation packages. In the financial sector, the pay package often increases exponentially with experience. The entry-level salary of a professional with a bachelor’s degree averages at $50,000 per annum. People with a postgraduate degree and appropriate skill set can earn a comfortable $80,000.

A successful career in the investment-banking field may take up many productive years of your life. The risk involved in the career and the long working hours are often outweighed by the financial benefits and job satisfaction!

Is Investment Banking Your Best Career Choice?

What is investment banking

       Investment banking as a career choice

Many Postgraduates as well as graduates in the management sector dream to become successful investment bankers. The key factor that attracts many of them is the monetary benefits involved with the profession.  However, most of these aspiring candidates do not have a clear-cut answer to the question: What is investment banking? Therefore, before setting your goal to becoming an investment banker, it is advisable to get a general idea about what investment banking is and analyze whether you have the ideal skill set to become a successful investment banker.

Let us try to understand the basic concept of investment banking by analyzing the major categorization.

Types of banking firms

The investment banking firms can be broadly classified in to three major types.

Bulge-Bracket or (BB) Firms: These firms occupy the creamy layer of the investment market. The average transactions of such a firm would exceed 2,500 million dollars. The internationally well-known and well-respected companies like Merrill Lynch, JP Morgan and Barclays belong to this category.

Boutique Firms: These companies operate in the small and medium space. The transactions in such firms are well below the BB range, but are still substantial. The boutique firms usually aim at simultaneously providing clients with access to securities broking and corporate finance products.

Middle-Market Firms: These firms cater to companies that have money transaction sizes lesser than the BBs and greater than the boutique firms.

Operational sectors

The hierarchy of operation of the investment-banking sector can be classified as follows.

investment market

 Investment banking and career opportunities

Back office

The professionals working here are responsible for providing support to the bank by doing necessary market research, enabling transaction and helping with the number crunching. Required skill set level is comparatively lower for this job.

Front office

The bankers who do the most interaction with the clients occupy this space. They are the fee generators who draw a fat salary as well as bonus. The job requires high-level skills.

Middle office

The people working here are responsible for risk management and take care of compliance requirements. Client interaction is minimal and required skill set is medium. The pay is slightly less when compared to the front office professionals.

The next time you ask yourself the question, what is investment banking, just know that it is a profession that demands a lot of hard work, long working hours and a lot of productive years of your life. However, by the end of the day, the payback and the job satisfaction involved makes all the hardships endured worthwhile!