icon wrote:
foodstamp wrote:
I think many people are choosing to not go into banking specifically (could that be driving the recruiting numbers down too? not just the supply of positions. are there people at Wharton who really wanted an IB job and couldn't get one?). Many of my IB friends got their bonus numbers recently and let's just say every single one is thinking about either immediately quitting or leaving within 2 months. If you calculate the amount of money you make in a year in IB and take into account the number of hours you've worked, you end up with something like $8-$10/hour this year. Better off working at McDs.
Not trying to be rude here, but I think you are WAY off base with some of what you said. Not a banking expert so I will throw out a couple things for others to confirm or deny.
1. Assume we are talking about an analyst straight out of college. Starting base salary straight from undergrad is at minimum 60k per year for even middle market banks (55k was standard when I graduated college in '05). Let's assume such analyst worked on average 100 hours per for 52 weeks over the past year and got $0 for their bonus they would still make about $12 an hour.
2. That scenario is actually overly conservative in making my point. You probably weren't talking about a first year analyst so salary (which I already modestly estimated) is higher, most banks were slower this year and anaylsts didn't come close to working 100 hours per week on average, and i would venture to say that no bonus is an overly conservative estimate. $8-10 per hour is a terrible estimate on your part.
3. The majority of banks regarded in the US as being in the top 40-50 shops pay bonuses during the summer, often bc it coincides with recruiting. So I find it odd that many of your friends just got their bonus numbers recently.
1. Bonuses for some people in IB this year (not even first year analysts) have been $0 - $30k. Many banks are doing deferred bonuses where you literally only get $10k upfront and the other $10k over the next two years (if you stay with the firm). And yes.. $20k bonus for an entire year in IB is pretty common this year. Take into account a $60-$85k base salary, and taxes, you aren't making all that much per hour. One of my friends who is in IB got so fed up with work that he started logging how many hours he worked each day and after getting his bonus, he came up with something around $14.50 per hour (he was in the top tier). I agree, $8-$10 was an understatement... but not by that much IMO. If you are going into IB simply because of the money, I really don't think it's actually worth it.
2. Analysts didn't come close to working 100 hours per week on average this year? Really? My data set consists of 6 people in IB spread across 3 banks and I have to disagree with you. When things get slow and the economy turns sour, IB hours don't change dramatically. The nature of the work changes instead. If you spent long hours working on deals while the economy was good, you are now spending countless hours on making desperate pitches to win deals. Same hours, different work. When the bank isn't doing well, there is much more pressure to crank out as many pitches as possible and try to hook something.
3. Many banks reveal bonus #s in Jan-Feb. (Some banks have converted analyst pay schedules to mirror associate/higher levels' pay schedules.)