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Investment Banking Salary

There’s no denying it: it’s hard not to be attracted to an investment banking salary. Investment banks exist to make money, and their employees certainly can make oodles of it for themselves with high salaries and big bonuses combined. Their senior employees and directors are amongst some of the most highly paid individuals worldwide!

So what could you expect from an investment banking salary in the City?

Base investment banking salary for graduates

If you’re starting a graduate role in investment banking, then you’re a lucky (and very hardworking) thing! The High Fliers report for 2013-14 states that the median starting salary for graduates taking on first year analyst roles at an investment bank is a mega £45,000. According to the results of the report, the most renowned City firms offer their graduates base starting salaries of around £36,000 - £55,000. Wow. 

These are the top starting salaries around! It even beats law, which falls in at a median salary of £39,500 for its first year trainees in 2013-14.

As you climb up the ladder, the base salary inevitably climbs too. After around three years’ experience, an investment banker can reach a six figure salary. Some of the more experienced will earn in excess of £150,000.

And that’s before we even get started on bonuses…

Bonuses

Investment banking has a strong, now often disputed bonus culture. It’s renowned for rewarding its bankers with high annual salaries on top of their salaries. Since the financial crisis, banker bonuses been an unavoidable source of controversy. The imbalance between the amount the banks hand over to their stakeholders compared to the amount paid to their investment bankers in bonuses is something not all feel is wholly justified.

However, for now bankers still remain in receipt of some generous bonuses, and another of the big appeals for jobs in the industry. As a graduate, it means that your yearly salary could tot up to anywhere between £50,000 and around £70,000 once you add on your bonus pay!

Factors that affect the investment banker bonuses

Bonus amounts are determined by a number of different factors. They can differ from banker to banker, and could relate directly to the performance of the department in which they work, as well as personal performance. Those seen to be working for harder and longer, and have the most positive influence on deals, are likely to receive a bigger bonus boost in their pay packet.