Investment Banking Research Associate...

A little bit about Research Associates...

I would say unless you have a huge desire to do research, cover companies, and write reports, then stay far, far, away from research. A few reasons why I say this: one, if you are expecting a glamarous job at an investment bank, then research is certainly not it. I would put research near the syndicate desk as far as status and prestige in a bank, well below M&A and Sales and Training. Two, among the first people to be fired at the sign of a downturn are the research analysts. They are a nice add-on service to provide to institutional investors, but they are also a cost center. Finally, the glamour days of research are gone. In the late 90's research analysts were called over the wall to provide insights on M&A deals and capital raises. After Elliot Spitzer, this was outlawed and research is kept far away from any transactions.

As far as pay is concerned, it will be less than on the deal and trading side of the house. Probably $130K-150K total compensation for a first year associate. Top Research Analysts at bulge bracket banks can make $2+ million a year, but that is pretty rare. The hours an associate keeps are probably 60-70 hours a week, more during earnings season when earnings reports have to be turned pretty quickly.

I hope this doesn't dissuade you from becoming a Research Associate, but rather lets you know that it's not the glamarous world of M&A or Sales and Trading. I personally want to move into M&A and do not consider research as an alternative.