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.
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.