Assume you don't want to be an investment banking hardo working 110 hours per week EVER. If you had to choose between a career in commercial banking or a career in corporate banking, which would you choose and why? Commercial Banking: Pay starts at 80K All-In out of Undergrad Pay hits ceiling around 150K All-In as a Team/District Manager/AVP by Year 8 Work Life Balance means you have time for relationships, startup, 4 weeks paid vacation, benefits you can actually use. No compliance monitoring for trading/investing Immediate and frequent client interaction, leading the dialogue with CEOs/CFOs of MM companies. Can always move into corporate banking after like 6-8 years in commercial Corporate Banking: Pay starts at 100K All-In out of Undergrad Pay hits ceiling around $250K All-In as a VP by Year 7 (Who knows how long it takes to make MD and what the pay is like?) Work Life Balance is less than commercial banking.. but you're out by 7-8pm most days and rarely ever work full weekend days. Can only trade/invest in mutual funds and real estate. No client interaction aside from listening to dial-in pitches until VP+ in Year 7. More interesting work and financial analysis (arguably) because of larger companies Better Exit Opps? (Maybe?) #finance #banking #corpfinance #investmentbanking #business #career UPDATE: Just wanted to let everyone know that I decided to make the move into Corporate Banking. Feel free to AMA if interested. General: - I was a 2nd year commercial banking analyst, and am now immediately starting as a 2nd year corporate banking analyst, with accelerated eligibility for associate promotion within 12 months. - VP promotion is there within 3-4 years for me. - Comp is starting at $120K all-in and goes up to $150-160K all-in as an Associate, $225K all-in as a VP. - Hours in commercial banking for me during my two years were generally 9-9 weekdays + sunday evenings almost religiously (top bucket). Hours in corporate banking from what I am hearing will also generally be 9-9 weekdays and occasional weekends (probably every sunday knowing me and I am in a well known "sweatshop-group"). - Allowed to trade as long as it's not the sector I cover, plus 1-month minimum holds before selling and compliance pre-clearance before buying, and investments held with bank I work at.
Your numbers are off for both. You can also make VP in 5-6 years, not 7 or 8.
You work for the company that OP hasn’t named? How do you know numbers are off?
Because every bank's standard track is VP in 6 years starting as a first-year analyst.
Can trade in specific equities as a Corp banker, as long as they’re not your clients and get compliance approval. Can vary from bank to bank though
Why work 50% more for less than 50% more?
ever heard of hard work paying off?
Pay range for commercial banking is too low and VP is achievable in 4-5 years. Also, Pay ceiling at my company (large regional bank) is ~$200k as director, ~$300k as an MD
Jesus, $200K all-in at director is low. Which regional bank?
SVB. That estimate might be a bit too conservative since my visibility only goes up to VP. Also with stock performing so well TC is probably a lot higher as of late.
Can confirm, your CML Banking salary range is low but definitely depends on bank and location/city (most impactful) I just successfully got an offer for $150k w/ ~ 4 yoe. Current TC is $130k
Are you at the associate level or VP? Also are you on the RM track?
Currently associate. The offer was for AVP. Not on rm track, But front office
Feel free to DM me if you need more info. I was at A bulge bracket for MM commercial banking. I wasn’t able to freely trade as you think.... movement to corporate banking or even IB (if you are in a major market) is there. Some of my cohort mates ended up in IB even (Moelis, Lazard, etc.) or junior lenders. In terms of hours, at JPM TMT corporate banking the hours were almost like IB..... not worth for the shitty pay compared to IB..... exit ops are pretty much almost the same. I admit MM can be shitty sometimes as you start off with corporate cards or shitty little $1.0M RLOC..... if you want complex debt structure go to corporate. I hated the simple balance sheets I saw.... I only touched maybe 2-4 names a lot of folks heard of, while Corporate counter parts had Dollar Shave Club, etc.
We really need a corporate banking discussion thread. Commercial banking is the pits.
Bump - updated thread.
Hey what bank/type of bank did you end up joining?
Do corporate finance because you will look for an exit from banking after a few years. You can grow a lot in corporate finance by then.
If he/she exits to corporate finance I totally agree.... pay for FA 1 is higher at $75K hourly + OT. Tbh though, probably better to get to associate at a bank first then jump to Corporate Dev or Strat