[UPDATE] Ended up going SWE Original Post Below: Long time lurker here and wanted to crowdsource some advice. I’m a recent grad from a target school with offers as an investment banking analyst at a bulge bracket bank and a SWE at Amazon. I’m pretty torn between the two paths, and have considered a litany of variables (WLB, initial comp, comp ceiling, optionality, etc) but there doesn’t seem to be a clear answer. Would love to hear any insight people have. TC for banking is ~140k and SWE is ~ 150k. I like working hard, and don’t mind politicking if that matters. Thanks! Edit: Thanks for all the comments and DMs. They've all been very helpful. A few responses to some questions/comments below. (1) IMO, the biggest pro for IB/PE is that the comp ceiling is higher. the question is how much attrition (voluntary and involuntary) is there between Analyst and MD. I would suspect ~1.5 in 10 make it. Instead, consider the average outcome of ending up as a Director of Corp Dev at a portco in a Tier 2 city. Comp is maybe 300-400k. This then becomes an expected value calculation versus near 95% probability (over the long run) of making it to Tier 1 tech company as an SWE III pulling 400-500k. (https://www.levels.fyi/2020/) (2) The people in tech are, on balance, less social, less fun, and less suave. This is true and should not be overlooked. Co-workers have a disproportiante impact on one's happiness day-to-day. On the other hand, while maybe 70-80% of people in IB/PE are nice, the arrogant machiavellian assholes of the remaining 20-30% act as "bad apples" and may spoil office culture. (3) Optionality is a big factor, but I believe both are fine. IB to SWE may be cheaper and take less time (bootcamp & leetcode) but it is emotionally/socially/mentally harder. Going to a prestigious business school after being a SWE II (SDE II) at Amazon then transitioning into be an associate in banking is a lot easier because of the well-defined track. I define prestigious B school as one where banks recruit from. (4) "Just do what you want to do / like." Well, yeah that's an axiom. The problem is, I don't know what I like or what I'm "naturally" good at. I think, with hard work, anybody can become proficient at whatever they set their mind to. (5) The majority of comp at the later stages, both in SWE and PE, comes from equity ownership (carry or stock options). This is highly variable and uncertain across the board. This is very hard to predict in both cases, though an employee seems to have more discretion into joining a growth stage company as a SWE. (6) The allure of being in a higher "social class" is there. We can all say it doesn't matter to us, but all else equal, the average person would rather have more class than less class. The question is how much weight to give to this variable. (7) Yes I've heard Amazon is tough, but it's leaving the office at 7pm on a weekday tough, not leaving the office at 2am on a Sunday tough. Long-run, I plan to switch companies so Amazon-specific concerns (WLB, PIP, etc) are less relevant. Also posted on WSO (link: https://www.wallstreetoasis.com/forums/new-grad-bb-ib-vs-software-engineer-at-amazon?page=0#comment-2513103).
This app might be very very very biased
Exactly! It's really unfair for IB option.
Not true. I voted for IB. OP likes politicking. Better keep that type of people in IB.
Why would you apply to these two vastly different roles? You’re setting yourself up for failure. Dont do IB unless it is TRULY what you want to do. I cannot tell you how many analysts I’ve seen burnout and get fucked because they chased money into Banking. You have to be truly committed. If you made it into Amazon, it must mean you’re a competent coder. Just go to Amazon. Do yourself a favor.
Many people only do banking for two years, you don’t need to be that committed. Most top targets to banking are not committed to banking, but do it for the exit opportunities. I’d still say do SWE but not for this reason.
Its people like this who ruin the industry for people like me... cest la vie
Did both - regret ever going into IB
Same. Did the IB/PE route and regret it too. SWE all the way.
what was the reason?
IB pays off huge if you make it into higher finance past entry level. It’s literally an entry into a higher social class. SWE you are fighting with every Tom dick and Harry til you retire. It’s not even comparable
Blind didn’t like this
How much do you make if you make it into higher finance?
Jesus how did you manage to get offers for 2 such different roles?
Probably Econ & CS?
CS major with three buy side finance internships
You can always switch back to swe if you don’t like banking, but not the other way around
True…
What about business school -> banking associate
As a finance major who did private equity and transitioned over to SWE - leave the finance industry ASAP
Could you please expand on this? Was it the hours, the lifestyle, the work etc that turned you away
following..
I don’t know about IB, but as a SDE you can grow into senior Principal roles with TC around 700k and above.
As a banker you get there as a 7yoe VP or director
lol, two different world. title doesnt make any sense in tech companies. We don't appreciate higher level, I see lots old engineers stay in senior level. VP? lol thats politics player
Why not get best of both worlds? SWE at a BB IB. You'd be getting experience as a SWE in an IB, and then you can always switch to tech companies if you want with your experience.
Please delete your comment 🤣🤣🤣
Dude what are you even talking about? A SWE at a bank is NOT EXECUTING AN M&A DEAL, which is what makes the experience valuable. You can't have both, you have no idea what you're talking about
IB: High money, low WLB SWE: Depends.