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Nov 2007:30 AM PST
-08:30 AM PST
Learn what truly sets the UC Riverside MBA apart and how it helps in your professional growth
02 Oct 2008, 15:07
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By "currently pursuing an MBA" do you mean you are a current student? If that is the case there is about zero chance that you can switch into banking unless you have prior experience (which I gather you don't have or you wouldn't be asking).
I think banking salaries are up in the air right now. JP Morgan, Citi and BofA never really paid at the top of the market. Goldman and Morgan certainly did, but they've had to change their model. Lehman did as well, but it's anyone's guess as to whether Barclay's will continue that trend, or whether they will fall in line with the other universal banks (this is most likely).
In the short term, say the next two or three years, banking salaries (or rather bonuses) will be depressed. I'm going to guess that total comp will be in the neighborhood of what consulting firms pay for the next few years. At some point, banking will recover (it always has) and the chase for talent will be back on again. The people that survive the current market will again be showered with riches, but it's hard to see that day from where we stand right now.
I think banking salaries are up in the air right now. JP Morgan, Citi and BofA never really paid at the top of the market. Goldman and Morgan certainly did, but they've had to change their model. Lehman did as well, but it's anyone's guess as to whether Barclay's will continue that trend, or whether they will fall in line with the other universal banks (this is most likely).
In the short term, say the next two or three years, banking salaries (or rather bonuses) will be depressed. I'm going to guess that total comp will be in the neighborhood of what consulting firms pay for the next few years. At some point, banking will recover (it always has) and the chase for talent will be back on again. The people that survive the current market will again be showered with riches, but it's hard to see that day from where we stand right now.
03 Oct 2008, 18:20
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89nk
That is a tough question that I am still trying to find the answer to. The banking industry is definitely a lot different than in was when we started business school last year (hell, it's totally changed in the past three weeks). Still, I had a good summer and enjoyed the work; and people who summered at the independent brokers (R.I.P.) are getting a lot of love these days from the boutiques (Piper, Evercore, Jefferies, Harris Williams, Houlihan and about a dozen others).
I'm being a realist and taking a fresh look at everything. I'm a portfolio manager with Darden Capital Management and would definitely be interested in a larger fund (not too interested in tiny funds). I'd love to get back to California if possible. I definitely wouldn't be opposed to a decent salary and reasonable lifestyle. I'd like to go to a firm with good career advancement opportunities as well as a good reputation. Pretty typical for an MBA student, based on personal preferences.
I'm not sure which way I'm going to go yet. I hope to have a few offers to choose from. If there's a nice boutique bank office in San Francisco or Los Angeles with a pleasant culture, I'd definitely be interested. If there's a corporate finance or business development job with a top corporate firm on the West Coast I could definitely be convinced. A good consulting firm will base me out of LA or SF with travel limited mostly within western states might be a nice place to ride out the crappy economy. The challenge is that people on campus aren't really sure how much hiring the various firms and industries will do.
I think a big factor is that I'd like a job that leaves options open for 2-3 years down the road when things improve. Nobody wants to commit to something because of a bad economy only to be stuck in something they don't like when things improve. Banking and consulting both fit the bill, and a stint at some place like GE or Microsoft would allow you to bolster the old resume while riding out the storm. A lot of firms are still recruiting but I guess it remains to be seen how much hiring they will actually do. Again, I'm hopeful that things will work out alright, but I'm keeping an open mind until firms put some offers in writing.
