Aiming for I-Banking? Here's What to Expect
Investment banking is always high on the list of MBA students' career preferences. The Wall Street Journal's Career Journal recently offered aspiring I-bankers some pointers on what to expect during and after business school. Here are the main points from that article, along with some of our own comments (in italics):
Getting hired: Most investment banks recruit staff through their summer internship programs. If you want to use your MBA as a platform to launch into investment banking, make sure you attend a program that includes a summer internship (i.e., a two-year, full-time MBA program). Take the time to research which firms recruit at which schools, and select the schools you apply to accordingly.
Salary and benefits: An MBA hired by an investment bank as an associate in early 2006 could expect a compensation package of about $185,000, a New York City pay consultant told the Journal. Wharton and Chicago's 2005 employment reports said that MBA grads from those schools who went into investment banking or brokerages received a median annual salary of $95,000 plus a sign-on bonus of about $30,000. The schools' employment reports would not include annual bonuses for performance, which, according to the Journal, can range from $70,000 to $190,000.
Career perks: Many investment bankers enjoy the amount of responsibility they get to take on early in their careers. Investment firms often provide their hard-working staff with morale boosters such as a company gym; concierge, meal, and car services; and free or discounted sports and theater tickets.
Career downsides: Long hours. 70 hours a week is typical. Hours are often intense as well as long, with bankers working through weekends and holidays. Another issue to be aware of is that most investment banks do not include pension plans in their benefit packages -- so bankers have to count on budgeting part of their generous salaries for retirement savings.
Source: "The Perks and Drawbacks of Being an Investment Banker," by Aja Carmichael - the Wall Street Journal Career Journal, May 24, 2006
Getting hired: Most investment banks recruit staff through their summer internship programs. If you want to use your MBA as a platform to launch into investment banking, make sure you attend a program that includes a summer internship (i.e., a two-year, full-time MBA program). Take the time to research which firms recruit at which schools, and select the schools you apply to accordingly.
Salary and benefits: An MBA hired by an investment bank as an associate in early 2006 could expect a compensation package of about $185,000, a New York City pay consultant told the Journal. Wharton and Chicago's 2005 employment reports said that MBA grads from those schools who went into investment banking or brokerages received a median annual salary of $95,000 plus a sign-on bonus of about $30,000. The schools' employment reports would not include annual bonuses for performance, which, according to the Journal, can range from $70,000 to $190,000.
Career perks: Many investment bankers enjoy the amount of responsibility they get to take on early in their careers. Investment firms often provide their hard-working staff with morale boosters such as a company gym; concierge, meal, and car services; and free or discounted sports and theater tickets.
Career downsides: Long hours. 70 hours a week is typical. Hours are often intense as well as long, with bankers working through weekends and holidays. Another issue to be aware of is that most investment banks do not include pension plans in their benefit packages -- so bankers have to count on budgeting part of their generous salaries for retirement savings.
Source: "The Perks and Drawbacks of Being an Investment Banker," by Aja Carmichael - the Wall Street Journal Career Journal, May 24, 2006
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