How Much Do Investment Bankers Make in New York

Investment bankers in New York can earn salaries ranging from $80,000 to over $500,000 per year, depending on factors like experience and job title.

The average base salary for an entry-level investment banker in New York is around $100,000.

Bonuses can significantly boost an investment banker's total compensation, with some analysts earning up to $200,000 in bonuses alone.

To give you a better idea, a first-year investment banking analyst in New York can expect to earn around $125,000 in total compensation, including base salary and bonuses.

Investment bankers in New York can earn an average salary of $116,578 per annum, ranging between $24,000 and $280,000.

The base salary for a first-year investment banking associate in New York City is $150,000.

Bonuses for investment bankers can range from $90,000 to $130,000, with top performers receiving up to $130,000.

The all-in comp for most 1st year associates is around $240,000 to $270,000.

Here's a breakdown of the average compensation for investment banking associates in New York:

Base salaries for investment banking analysts in New York are fairly standard during all 3 associate years, ranging from $150,000 to $200,000.

Bonuses for investment banking analysts can vary significantly, with top performers receiving up to $230,000.

Here's a breakdown of the average compensation for investment banking analysts in New York:

In investment banking, bonuses can be a significant part of your overall compensation. Traditionally, analysts in the US receive their first-year bonus 12 months after arriving, but some firms are switching to a "stub year" model, where you can get a small bonus just 5 months after starting, around $30,000-$35,000.

The size of your bonus will depend on several factors. There are four major factors that determine the size of the year-end bonus: Individual Performance, Group Performance, Firm-Wide Performance, and Firm Type.

Individual Performance is a crucial factor, with bonuses ranging from the "bottom bucket" to the "top bucket" ranking. This means that your bonus will depend on how well you perform compared to your colleagues.

Group Performance also plays a significant role, with bonuses tied to the success of your product or coverage group. If your group has a strong year, you're more likely to receive a larger bonus.

Firm-Wide Performance is another key factor, with bonuses tied to deal size, volume, deal count, and total revenue. If the firm as a whole has a strong year, you're more likely to receive a larger bonus.

Lastly, Firm Type also affects your bonus, with bonuses varying between Elite Boutique, Bulge Bracket, and Middle-Market firms.

In New York, the investment banking industry is highly competitive, and career advancement is possible with dedication and hard work. Few analysts stay through their second year, but those who do can get promoted directly to associate, a significant career milestone.

Compensation for investment bankers in New York is substantial, with associates making upwards of $250,000 and vice presidents earning up to $500,000. The highest level, managing director, can earn anywhere from $500,000 to several million dollars.

Here's a quick rundown of the typical career path:

There are three main types of investment banks: Bulge Bracket, Elite Boutique, and Middle-Market Bank.

Bulge Brackets work on massive global deals and are part of massive financial institutions like Goldman Sachs and JP Morgan.

Elite Boutiques focus solely on investment banking M&A advisory and work on equally massive deals.

These firms are generally clustered around the same base compensation for analysts, with bonus variation based on factors like performance and deal size.

Regional Middle-Market Investment Banks tend to be on the lower end of the compensation scale, but still competitive.

Elite Boutiques generally pay the most, with some offering $110,000 for new analysts, while others in the same category pay $100,000.

Here's a quick breakdown of the main differences:

The investment banking career path is a challenging and lucrative one. Few analysts stay through their second year, but those who do get promoted directly to associate, where compensation rises significantly to $250k+.

Analysts who stay on can expect a significant jump in pay. The next level up is vice president, who can make upwards of $500k.

At the top of the food chain is the managing director, who makes anywhere from $500k to several million dollars. This is a career path that's hard to beat, especially for those who are ambitious and driven.

Here's a breakdown of the typical career progression:

It's worth noting that investment banking often serves as a springboard to even more lucrative and prestigious careers, such as venture capital, private equity, and wealth management.

The methodology behind determining investment banking salaries is quite straightforward. We're using data from the H1B Database, which tracks salaries of skilled employees in the US, and cross-referencing it with survey data from Litquidity.

Most investment banks pay a base salary between $105k to $115k, which is what goes into your bi-weekly paycheck. This is the foundation of your compensation package. To calculate the median salary range, we use a 50-75% multiplier of base salary, which results in a median salary range of $155k to $220k.

Here's a breakdown of the typical salary ranges for investment banking analysts at top U.S. firms: Salary RangeAnnual SalaryLow$155kHigh$220k This range includes the low end for first-year analysts and the high end for second-year analysts. Keep in mind that these salaries reflect a strong year of M&A from 2021 and the early part of 2022.

We used the list of top investment banks from the Wall Street Journal's 2021 league table to benchmark salary ranges. This list helps us focus on the biggest players in the industry.

The base salary data we used comes from the H1B Database, which contains information on salaries for skilled employees who have been granted an H1B visa in the US. This database is a valuable resource for understanding salary trends.

We cross-referenced the H1B Database with survey data from Litquidity's compensation report, which was published in August 2022. This report provides valuable insights into analyst, associate, and VP compensation at top investment banks.

We only used Analyst titles and positions in New York from the H1B Database to standardize our results. This helps ensure that our data is relevant and comparable.

The H1B Database contains a wide range of salaries, but we had to make some judgement calls about what to exclude, such as roles listed at $60k that are likely back-office analysts rather than investment banking analysts.

We used data from both the H1B Database and Litquidity's report to determine the typical salary range for Investment Banking Analysts at top U.S. firms. This range is $155k to $220k, which includes salaries for analysts in their first year and second year.

Investment banking pay can be a complex topic, but let's break it down into some key observations.

Most investment banks will make a base salary between $105k to $115k, which is what goes into your bi-weekly paycheck.

Bonuses are a lot less standardized, but based on my experience and surveying my peers, it's appropriate to use a 50-75% multiplier of base salary. This gets us a median salary range of $155k to $220k.

Some banks will further tier their bonuses into "buckets" to incentivize performance by paying better-performing analysts more. At bulge brackets, top bucket analysts will generally make ~10-30% more than bottom bucket analysts.

Elite boutiques, like Evercore, Centerview, and Lazard, typically pay more money due to their leaner organizational structure and deal team compensation model.

Centerview, in particular, consistently pays the top of street, often rivaling the pay of private equity and hedge fund people. If you're a top 3rd year analyst at Centerview, you can easily make >$300k.

Most top investment banks are public companies, but unlike working for Big Tech, you won't get any company stock as an Analyst.

Investment bankers in New York can earn a significant amount of money, but it comes with a steep price: long hours. The average base salary is about $83,660 per year, but bonuses can add to this amount significantly.

Working in investment banking is not for the faint of heart. Anyone who is not comfortable working weeks that frequently run in excess of 80 hours should probably look elsewhere for a career.

The top 10% of investment bankers in New York earn almost $160,000 a year, which is a good total income goal for many. This is a significant amount of money, but it requires a tremendous amount of hard work and dedication.

Some banks even feature rooms with bunks for investment bankers who find themselves at the office at midnight or later. This is a testament to the long hours that investment bankers often work.

Here are some key statistics about the pay and work conditions of investment bankers in New York:

Keep in mind that these numbers are averages, and actual pay can vary widely depending on individual performance and experience.