An investment banker’s salary can range from roughly $51,000 per year at entry level to more than $200,000 per year for an experienced and successful associate investment banker, according to PayScale. This wide gap can be better understood through the following averages, also from PayScale.
- Average salary: $96,476
- Average bonus: $25,000
- Average profit sharing: $9,933
- Average commission: $62,500
Between salary and incentives, investment bankers can usually expect to make well into six figures. The income is hard-earned, as the role of an investment banker often requires long hours working on high-stakes transactions. This does not mean you are getting paid simply to work in a stressful job; in fact, quite the opposite. The high salaries of investment bankers reflect these professionals’ energy, tenacity and hard work.
Investment Banker Job Functions
An investment banker gets paid to assist organizations seeking to raise capital, representing a financial institution (their employer) and liaising with both the company (the client) and investors. Their responsibilities include:
- Evaluating an organization’s financial status and goals
- Understanding the organization’s needs
- Conducting deep industry research
- Financial modeling and analysis
- Developing a strategy for raising capital
- Connecting the organization with potential investors
- Coordinating and managing transactions
Investment Banking Levels and Salaries
Investment bankers typically start as analysts. An analyst role is largely considered the time when an aspiring investment banker “pays their dues” with long work weeks and detail-oriented tasks. Many analysts receive signing bonuses at their time of hire and take home between $120,000 and $140,000 each of their first few years in the field.
A successful analyst will likely pursue their MBA and become an associate, making closer to $200,000 per year before potentially rising to VP, managing director or partner status. Executives in investment banking can make upward of $300,000-$500,000 per year. Investment banking can also lead to other high-paying careers in finance, such as private equity and wealth management.
Becoming an Investment Banker
If you have a passion for finance and are motivated by the high earning potential in investment banking, Wiley’s Investment Banking Course can help you take the next step.