Investment Banker Salary Range

Investment banking is the best career option for those who find their calling in finance and accounting. A bachelor's degree in accounting or finance, followed by a master's degree in business administration will adequately equip you to deal with the challenge which investment banking poses. What you essentially need is a keen intellect, well versed in mathematical and analytical skills. Such an individual is bound to excel in this profession. In what follows, after detailing the job profile of a typical investment banker, forecasted payscales are presented. To give you a heads up right away, you may expect the starting emoluments to range from $90,000 to $150,000.

Investment Banker Job Description

Investment bankers perform the task of helping various companies in acquiring funds, besides facilitating purchase and sale of various securities. Allocation of capital to enterprises with promising futures, with the aim of maximizing profits for the investor, is the central guiding principle. These people play an important role in acquisition and merger plans of companies. They are the people who handle the initial public offering of companies that plan to raise capital. Investment bankers also shoulder the huge responsibility of rescuing a company from heavy financial losses and suggesting ways to improve the situation.

Salary Range of Investment Bankers

Now that you are acquainted with the essence of what an investment banker's job entails, let us look at the salary figures these men in suits may expect to earn. The pay scale for this profession largely depends on the education, experience and location of the candidate. Many people are successful in entering this field, even with a bachelor's degree. For them, the starting investment banker salary range is between $90,000 to $150,000. This salary is markedly high compared to what is offered in other professions at the entry level. Ergo, it's not surprising that we find investment banking at the top of the highest paying jobs list.

The candidates who enter this field with a master's degree in business management can expect to earn a decent package of $110,000 to $350,000. Another striking feature which governs the salary is the bonuses which they receive. Initially, a bonus in the range of fifteen to fifty percent of the salary, may be expected. However, the current economic scenario portends a cut in entry-level bonuses. Experienced investment bankers can earn bonuses as high as two to three times their remuneration. The salary range spread is very wide, because of the addition of an equity component to their basic salary.

Analysts level positions are known to earn well. There are first year analysts who earn anything in between $70,000 to $150,000 annually. The emoluments may even touch $250,000 after third or fourth year, in case of analysts. Associates rank higher in the corporate hierarchy and certainly earn better than their subordinates. The educational requirements for associates are a master's degree in financial administration along with the basic bachelor's degree. The investment banker salary range for associates is between $160,000 to $400,000. They also receive handsome bonuses apart from the salaries.

Investment bankers who have spent several years in the financial services sector get the opportunity to work in prestigious positions as Vice Presidents, Managing Directors and Directors. The investment banker salary range for Vice Presidents may range between $400,000 to $1,000,000, while that for the M.Ds and Directors can be anything in between $500,000 to excess of $1,500,000. Department heads are the biggest earners with salaries ranging from $800,000 to more than $20,000,000. The average pay for these experienced financial wizards is around 3 to 3.5 million dollars.

The lucrative investment banker salary has lead to a rise in the number of aspirants who wish to enter this profession. We may conclude that a career in investment banking is one of the most handsomely paying ones. Be aware that it comes with a considerably high amount of risk and challenge, presented by the millions of investor dollars put at your disposal. It is a high stakes and high risk game. If you think, you have the requisite financial acumen and the mental toughness required to handle stress and mounting expectations, this is the profession for you.