Hello All, For some background, I’m currently working in restructuring consulting and i am expecting an offer from an MM IB Group. My current compensation structure is $140k base and approximately $30k bonus. I’m lining up for promotion so expecting atleast another $10k in salary. An external recruiter I’ve been working with on this investment banking associate process has communicated to me that I will be receiving an offer. When we talked comp she mentioned average for IB Associate is $125k (seemed low). When I consider the offer I’m hoping at-least $150k which I read is street for A1. Given I know my average hours will probably go from 50-70 to 80-90 would you make the switch? Other considerations are: 1. Will need to take FINRA licensing exams 2. IB stole covering an industry I’ve always had an interest in 3. Trying to build up more of a savings for the future 4. Exit opportunities 5. Work life balance 6 Career growth Any guidance would be helpful.
I wouldn’t make a switch for $10k unless there are significant growth opportunities.
It’s only $10k on base. The bonus from what I’ve gathered will be at-least 70%
Hey! I’m interested in making this switch too. Can you walk me through the process of finding a recruiter? I have heard that you usually need to get into IB straight from B schools. Now that I’ve already joined consulting, trying to see if the jump is still viable.
Recruiter reached out via LinkedIn. It’s possible to lateral in as associate, you just have to position your experience well. Having deal related experience is a huge plus.
Coming from someone who works 80+ hour weeks, don't do it. Use that time to build side income streams
I work 80+ hour weeks too just not as consistently. I was staffed on a shit project last year and probably clocked that for 6 months on average.
Yup, I too end up working for for about 60-70 hours a week on an average. I rather make more money for 10-20 extra hours a week and get to become financially independent sooner. But is that even possible? I graduated from B school in 2020.
I definitely wouldn’t, though I’m jaded. You have to consider that coming as an Associate 1 is freaking awful. Analysts won’t trust you. You’ll have no idea what you’re doing even if you’re working on a technical side of consulting. IBD is a whole another animal and the learning curve is steep, + trying to work 80-90 hours a week would push me over the edge. $125-130 sounds right, though I left banking 3 years ago so may have jumped since. Yes the bonus opp is big but at what cost? I’d rather have my sanity bringing in $175k then hate my life bringing in $250k
I know this is for sure something I’m considering. I’ve had these “I hate my life” moments in my current role. As I mentioned in one of my earlier comments, I’ve worked 80+ hours week. I was staffed on a particularly brutal engagement and I was traveling every week on top of that. My work is more technical than traditional consulting (three-statements, valuation, profitability models, flow of funds, etc...). I won’t claim to come in ready to lead a process but I don’t think I’ll be as clueless as a post-MBA with no finance experience.
That sounds fair, as long as you know what you’re getting yourself into. Would say learning curve will still take 6-8 months before people trust your work. Also I’ve noticed there is a difference between a consulting 80 and a Banking 80. Things always seemed more rushed for me in banking (I’ve done both) Another difference is that if you’re already close to the edge, pushing yourself a further 10-20% would feel exponentially worse then the first 80-90%. If you’re already working 16 hour days and sleeping 6 hours, working 18 hour days and sleeping 4 is absolutely awful
A 25k base difference now isn’t that bad considering your bonus upside is going to be up to 4x of your current bonus. To answer your questions 1. Yes, specific to your coverage. It’ll be sponsored. 2. Sounds like a good reason to move 3. Again, large bonus upside 4. More with IB 5. Worse with IB 6. Cannot opine without knowing specifics.
$150k is ambitious IMO, especially since you’re not a lateral hire from a competing IB. $125k seems right for an A1, might have better luck negotiating a sign on bonus which there is more flexibility for. Is the role in restructuring?
I’m surprised I’m making more on base than an IB associate. I was reading that last year BBs and MMs moved to $150k base (with the exception of Goldman). I don’t know if id be willing to take the pay cut... the role is not restructuring, its industry coverage.
FYI the difference is the bonus target.. don’t think you can hit 75-90% bonus in consulting. That’s why it’s lower. I haven’t seen $150k. Just because Goldman did it doesn’t mean this random MM bank would raise to match. $130 sounds about right wouldn’t push your luck
I think bonus is something to also take into consideration. On the street at most BBs and EBs 150k is the standard base for Ao1 in High COL locations like NY/Cali, but because IB associate bonuses are around 75-125% of base you’ll still be making considerably more money 218-280 if they follow the same model. I think you should take it if you are interested. It opens up opportunities like PE, hedge funds or BB IB in the future and worst case scenario you exit back to consulting or Corp fin at a Fortune 500.
This is exactly why I was considering it. The opportunity and if I hate it I can easily pivot back. My team hires plenty of IBD folks from all levels (Associates and VPs for example).
It sounds like this offer is for Lincoln international, which is known to have a very good culture and they are cognizant of employees hours and workload. 125 is definitely normal, especially considering bonus will likely be around 100k-125 so looking at almost 250k all in. I would definitely take the offer given the opportunities it would open up for you and if you are interested in the work you’d be doing
Not Lincoln
Base salaries for A1 from top tier Business schools is $150k for most bulge bracket banks. Independent firms such as Evercore and PJT have higher base salaries ($160k).
1. License exams are not so bad wouldn’t worry about it if you like the space they are fun. 2. If it’s the industry you want to be in long term do it you’ll only regret not trying sooner.