Investment banking is a career that can take you to unimaginable heights. In just a few years in a job, your lifestyle could change from middle class to luxury. They decide the fund allocation in various markets, how much return they could gain, and persuade businesses and managers. Let us know ‘Salaries For Investment Bankers In New York (NY)’.
This job demands a lot of skills like business analytics, a commercial mindset, and paramount communication skills. Their core work involves raising money for businesses, private societies, or even governments.
You must have heard about investors investing millions or billions of dollars in some company, acquiring them, or merging two more companies. All these decisions have an investment banker at the core. Sometimes they are the bridge between two big companies.
Salaries For Investment Bankers In New York
As you can see no corporation can function well without an investment banker, they are paid well. And in this article we are going to do just that, discuss the salaries of investment bankers in New York. The United States is the economic powerhouse of the globe, and in a city like New York which is its financial capital, investment bankers are highly in demand.
A disclaimer, the salaries provided are from multiple sources, they need.
Median/Average salary of Investment Banker
In New York City, the average annual salary of an Investment Banker is approximately $150900.
As per another source, the average salary in New York stands at $220,500. If you ask about the range, it lies within $17500 to $270000. Around the middle 65 percentile investment bankers earn the lower band of $175000 whereas the upper 65 percentile earn the upper band of $250000 and more.
Salaries for investment bankers in New York are considerably higher than the US average. Talking about the overall US, the average investment banker earns $17500 p.a., with a package ranging from $140000 – $210000.
Like California is for software engineers, New York is the hub for finance and commerce.
Entry Level Salary
For someone who has just finished his/her MBA (Masters in Business Administration), you may be wondering what could be your possible salary in New York.
Well, as a fresher you could expect your yearly salary to fall within $70,000 – $90,000. Sometimes, it could even cross $100,000 depending on the type of company. For instance, for a multinational financial institution like Goldman Sachs, Bank of America, or J.P Morgan $100,000 p.a. is no big deal.
So, the monthly salary that will be credited to your account would be $6000 to $7000.
With this salary, you could easily live life the way you want. But as the salary in New York is higher than the average US, so is the cost of living as well. You can assume 1/5th of the monthly salary to go into house rent.
Mid-Level Salary
For an investment banker in New York with 3 to 4 years of experience, adding hikes in bonus and base salary is $130,000 to $180,000 p.a.
Thus, the monthly salary is $10,000 to $15000, which is not bad. If you don’t move to a bigger apartment, by spending just 1/6th or 1/7th of your salary in rent, you could save/invest or lead quite a luxurious life.
To get the maximum hike, it is recommended that you give 3 to 4 years in one company. Shifting to a different company every year creates a bad impression on your resume.
Experience Level Salary
An experienced level investment banker in New York is like a ringmaster in its arena. There is nothing better than that. People across the world who are mid-level experienced or beginners wish to someday become investment bankers in New York.
Hence, the salary could be high as the sky and the work profile is almost next to CEO, guiding him/her and becoming one of the decision-makers.
The annual package for 8 to 10 years or more experienced investment bankers in New York is in the range of $250000 to $300000.
Those who have worked in the investment banking industry for 8 to 10 years, don’t need to worry about rent because they already buy their mansion till now.
Salary as per Designations
Investment banking is an umbrella term, within which there are different destinations.
Analyst
Usually, every Investment Banker starts their journey with an Analyst. No one is going to ask you about managing funds on the very first day at the job.
The entry-level salary package of $70,000 – $90,000 applies to analysts. Rest, the difference is on the company. An analyst in a newbie company is bound to get less than Goldman Sachs or Deutsche Bank.
As an associate, 3 to 4 years of experience is needed to get promoted.
Associate
The mid-level salary package of $130,000 to $180,000 p.a. applies to Associates. It usually takes 3 to 4 years as an associate to be eligible for the promotion.
Associates are junior managers with analysts under their guidance.
Vice-President (V.P)
At the age of 28 to 40, you are eligible to become Vice President after serving as an Associate.
Vice-President is a managerial position, your job becomes management and overlooking work. The daily profile is attending meetings and brainstorming on new investment areas.
The experience salary package of $250000 to $300000 applies here.
Salary as an investment banker in New York as compared to other regions in the US
New York – $220,500
Manhattan – $66,800
Chicago – $74838
Brooklyn – $45000
Houston – $60,000
Pinole – $54,200
How to increase salary levels?
Location
Well, as an investment banker, if you are working in New York, there is no other place for a better salary. It is the best in the world. Hence, changing locations will result in reduced pay.
Experience
The second thing that can increase your salary is experience. Experience in an investment banking job means more connections. And every company wants an employee that has numerous connections to get new clients.
In fact, after gaining some experience you could start your investment firm.
Enhance communication skills
Investment banking is not a back-end job, where you would spend your all day in front of a laptop.
It needs the skills of persuasion, high business acumen, and demographic knowledge and is updated every hour.
Conclusion
Investment banking is one of the job profiles that earn you money, respect, and importance in society.
This could be understood from the fact that many engineers also become investment bankers in the future. Read Hope this article has helped you to understand what pay scale you will land in New York as an investment banker.
