Why Investment Banker Salaries Rise With Experience

Investment banker salaries are considerably higher than the averages across the financial sector and other industries. This is scarcely surprising when you consider the nature of the work people carry out in that industry or its importance to the overall running of the free market economy, but the salaries can be boosted by and exceptional performance in raising capital for corporate clients. This is an industry to consider working in if high earnings are important to you, but you will have to overcome the hurdles needed to break in, and you will have to work exceptionally hard when you get there.


An investment banking career is something which needs to be planned well right from the start. There are so many potential pitfalls which can derail your campaign if you are not aware of them. You will need you be able to meet the minimum requirements to obtain a college course, but beyond this you will need of be able to convince a college that you are the right student to take one of their places. This involves making sure that the college course you choose is the right one, and selling your abilities as efficiently as possible once you have graduated.

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The salary you can achieve as an investment banker at any time depends on the position you hold within the company. In the vast majority of cases, even an extremely well educated investment banker will be given a position as an analyst, which sound far grander than it really is. These positions are the lowest level of the investment banking industry, and the salaries are also comfortably below those of any other position within investment banking. Usually, these positions only last for a few years before the analyst moves into another sector of the company where the salary can be much higher.

The investment banker salaries grow higher when you reach the level of associate, and this is a possible goal even for those who come into the company as an analyst. Internal promotions happen when the company realizes that someone can be more use as an associate remaining within that sector of the business than they can be moving over to the buying side. It is also possible for someone to come into the business as an associate right from the start, if they were studying for a high level MBA and were recruited directly.

This is admittedly a rare occurrence but it does illustrate the point that investment banking salaries depend to a significant degree on how well you can present your case. It may not be possible for everyone to be placed on a high level MBA course, but it something you should try to achieve if possible. If you are not sought out by the companies themselves, as most will not be, then you will need to launch an aggressive campaign to get your resume in front of as many recruiters as possible. It is unlikely that you will be earning a high salary without having to go through a few years at the bottom level first, but you may get there sooner.

Investment banker salaries will vary slightly from one company to another, as everyone is trying to be the best they can within the industry. If a company is able to land a high dollar deal, they may use a part of the profit to increase salaries and try to take some talented employees away from their competitors. This will then make them more likely to win future large contracts. It pays to be flexible in your outlook if you are seeking the highest investment banker salaries.




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