Why Do Investment Bankers Work Such Long Hours and How Does It Affect Them?

Investment bankers are notorious for their grueling work schedules, often putting in 100-hour weeks or more. This is partly due to the high-stakes nature of their work, where deals can fall apart at the last minute.

Long hours can lead to burnout, with many bankers reporting feelings of exhaustion and decreased motivation. In fact, a study found that 70% of investment bankers experience burnout symptoms, including emotional exhaustion and cynicism.

The pressure to perform is intense, with bonuses often tied to meeting or exceeding sales targets. This can lead to a culture of overwork and long hours, as bankers try to meet their targets and secure their bonuses.

Investment banks often prioritize short-term gains over employee well-being, with many bankers feeling they have no choice but to put in long hours to succeed.

Investment banking culture is a key driver of long hours in the industry. Many senior bankers view long hours as a necessary part of paying their dues.

Plenty of bankers introduce more work or last-minute requests not because they're necessary, but because they want extra analysis just in case. This can lead to unnecessary work and added stress for junior bankers.

Most meetings don't require 100-page pitch books; many clients barely even read the full presentations.

The culture of putting in extra hours can be overwhelming, with some bankers introducing last-minute requests just to get extra analysis "just in case."

Most meetings don't require 100-page pitch books, and many clients barely even read the full presentations.

Changes requested at 3 AM for a 9 AM meeting are often not important – they would have been requested much earlier if they were crucial.

You'll often hear that investment banking is a demanding career, but what does that really mean? Well, I've experienced it firsthand, and I can tell you that the long hours are real.

Investment bankers often work long hours, with some reports suggesting up to 100 hours per week. The unpredictability of the job can make it difficult to maintain a healthy work-life balance.

To give you a better idea of what to expect, here's a typical schedule: always be pitching. This means being prepared to present your ideas and pitches at any moment, whether it's to a client or to your team.

Investment bankers work long hours, but some firms are trying to improve work-life balance.

Investment banking analysts often work until 9pm on good nights or as late as 3am on bad nights, with "all nighters" not uncommon for crazy deals.

Protected Saturdays are a new rule introduced by some big-name banks to guarantee analysts a full day off on Saturdays for mental and physical health.

Analysts may still work on Saturdays for emergencies and live deals, but this varies by company and team.

Mandatory vacation rules are also being enforced by some larger banks, requiring employees to spend their allocated vacation time completely unplugged from work.

Some firms are taking steps to address the issue of retaining top talent, but it's unclear how effective these measures will be.

Investment bankers work notoriously long hours, with the typical work week filling in 60-80 hours per week. This can vary depending on the company and the deals at hand.

Junior analysts have quite a packed schedule, often loaded with tasks such as financial modeling, presentation building, due diligence, market research, and other on-the-job requests. They typically work ~60-80 hours per week, with some weeks being far in excess of this.

According to a 2021 Working Conditions Survey by Goldman Sachs, first-year investment banking analysts work more than 95 hours per week, on average. This is likely due to the high intensity of their work, which can involve multiple live deals and poorly aligned international projects.

Here's a breakdown of typical working hours by role:

As you get more senior, your hours do get better, with each level working ~5 hours per week less on average. However, even senior bankers can still work long hours, especially when there's a live deal.

Long hours and little sleep are a norm for investment bankers, with some working 100 hours or more in a single week. This can lead to burnout and decreased productivity.

The grueling schedule can affect their sleep patterns, causing them to wake up feeling tired and groggy.

Getting enough sleep is crucial for our overall health and well-being. Most adults need 7-9 hours of sleep each night to feel rested and alert.

Research suggests that getting less than 7 hours of sleep per night can lead to impaired cognitive function, including attention and memory issues.

Sleeping in on weekends may not be as restorative as you think, as it can disrupt your body's natural sleep-wake cycle, also known as your circadian rhythm.

The average person spends around 26 years of their life sleeping, which is roughly one-third of their lifetime.

Sleep Duration is crucial for our overall well-being. Investment Bankers who average 80-hour work days will likely get around 7 hours of sleep per night.

People who work long hours, like Investment Bankers, often sacrifice sleep to meet their demanding schedules. They go to bed at around 2 AM and wake up around 9 AM.

Getting 7 hours of sleep per night can have negative effects on our physical and mental health.

Investment bankers often work long hours due to the demanding nature of their jobs. They typically work over 100 hours per week, with some even exceeding 150 hours.

Long hours are a result of the high stakes involved in investment banking, where every minute counts. The industry is highly competitive, and bankers are under pressure to meet tight deadlines and deliver results.

The intense work culture in investment banking is also fueled by the high expectations of clients. Clients often require urgent attention, and bankers must be available around the clock to address their needs.

Quiet periods don't last long, and there's usually a floor to how much work you'll have. Non-deal mode doesn't mean you get to completely slack off.

You'll likely have less than 60 hours of work if you're not on live deals and your group's partners are about to start pitching. Partners try to operate their groups like efficient teams and will take on additional projects if there's excess capacity.

The weeks when you can most reliably get to 40-50 hours of work are around the holidays.

As you navigate the world of investment banking, one thing becomes clear: the analyst year is a unique beast. The first year is often a time of intense learning and adaptation, with a heavier workload relative to second-year analysts on some teams.

First-year analysts may be given a lot of responsibility, but they're also expected to learn quickly and take on a significant workload. On the other hand, second-year analysts are often trusted with critical work and given more autonomy.

The schedule can be completely different for first and second-year analysts, and it's often bank-dependent. Some teams may have a strong "pay your dues" culture, where first-year analysts are grinded hard while second-year analysts get to waltz around.

The typical day of an investment banking analyst is chaotic, with a mix of meetings, financial modeling, and presentation creation. They often work long hours, sometimes until 9pm or even 3am, especially when a deal is particularly crazy.

Investment banking requires a high level of adaptability, and analysts need to respond quickly to new projects and client needs. This can be a challenging but rewarding experience for those who thrive in fast-paced environments.

In the banking industry, long working hours are a norm. Investment bankers often work over 100 hours per week, with some reports suggesting up to 120 hours.

This grueling schedule is partly due to the high-stakes nature of their work. They're tasked with advising clients on complex financial deals, which requires a tremendous amount of time and attention to detail.

Investment bankers often work on multiple deals simultaneously, juggling multiple clients and projects. This can lead to an unsustainable workload, causing them to put in excessive hours.

The pressure to perform is intense, with bonuses often tied to the success of deals. This creates a culture where bankers feel compelled to work long hours to secure their bonuses.

The banking industry's 24/7 nature also contributes to the long hours. Markets and financial systems operate around the clock, requiring bankers to be available at all hours to respond to client needs.

In some cases, bankers may be required to work on weekends or holidays, further eroding the work-life balance. This can lead to burnout and decreased job satisfaction.

Working long hours can take a toll on investment bankers' personal lives. Many investment bankers report working over 100 hours per week, which can lead to burnout and strain relationships with family and friends.

Long hours can also impact mental health, with some investment bankers experiencing anxiety, depression, and stress. For example, a study found that 70% of investment bankers reported feeling burnt out at some point in their careers.

The constant pressure to perform can make it difficult for investment bankers to maintain a healthy work-life balance. They often have to sacrifice time with loved ones, hobbies, and other activities they enjoy.

People who work in investment banking often have to put in long hours, sometimes going without sleep or taking work home with them. This is because investment banks sell a service where clients pay tens of millions of dollars for a personalized experience.

Investment banking clients expect to be served on their own schedule, which means someone at the firm is usually on-call for most days and late nights. This can be stressful and affect their work-life balance.

The nature of investment banking deals can be unpredictable, with last-minute adjustments and changes that require immediate attention. For example, an unexpected buyer may put in a last-minute acquisition bid for a company, requiring analysts to work through the night to adjust the deal.

Having too many people working on a complex deal can actually create more problems than it solves. For instance, having multiple analysts adjust a large Excel spreadsheet can lead to inconsistencies that negatively impact the client's experience.

Investment banking deals often involve complex financial calculations and spreadsheets, which can be time-consuming and require a high level of expertise.

Are Worth It?

The long hours in investment banking can be a major concern for many, but is it worth it? From an hourly compensation perspective, the hours are not worth it, as an investment banking analyst can earn a similar hourly rate working in management consulting or corporate finance. In fact, an investment banking analyst paid an average annual compensation of $170,000 per year working an average of 80 hours per week makes an hourly rate of $42 an hour.

However, from a career path perspective, the hours can be worth it. Many investment banking analysts tend to exit the investment banking career path to pursue investment careers with hedge funds or private equity firms who are willing to pay them more for slightly less work.

Some people may find the long hours worth it, as they can learn a tremendous amount in a short period of time, like the author of Example 3. They can also develop strong friendships and a sense of camaraderie with their colleagues.

On the other hand, the unpredictability of the job can be a major drawback. As the author of Example 3 notes, the inability to make plans can be frustrating and stressful.

Ultimately, whether the long hours in investment banking are worth it depends on individual circumstances and values. Some people may find the benefits outweigh the costs, while others may not.