INQUIRY: Investment Banking Career

Career Profile
Prospect for Success Paper # 2

Submitted to
Ms. Amy Riter
Director Undergraduate Special Programs
Belk College of Business
UNC Charlotte

Submitted by
S. Wyatt Shely
BUSN 1101-H01
November 23, 2015

Inquiry PFS Paper # 2

Inquiry: Investment Banking

Inquiry: Investment Banking Career Profile

Investment banking is one of the most competitive careers to pursue. Much of the world
has dramatized this lucrative and prosperous career, often misleading the public about the
immense amount of work it requires to excel in the investment banking industry. Yes, the
potential rewards of being in the financial industry, particularly investment banking, can be
incredibly attractive. Nevertheless, many people do not realize how much work is needed to
climb up the hypothetical investment banking ladder.
According to University Alliance (n.d.), working as an investment banker encompasses
an array of different duties including consulting with clients ... conducting research, maintaining
data in spreadsheets and creating reports ... and making recommendations (Investment Banker
Job Duties, para. 3). The purpose of an investment banker revolves around meeting the needs of
other businesses. Whether businesses need help with financing, or companies are interested in
becoming acquired or purchasing or merging with another firm, an investment banker will
advise and structure the complicated information needed to complete the deals (University
Alliance, n.d.). Due to the large amount of capital that is needed in deals involving investment
banks, it is critical that one take the responsibility of analyzing and interpreting data with a keen
sense to detail. As mentioned earlier, investment bankers will have to collect and prepare data
that is important for conducting various deals such as an Initial Public Offering (IPO), or a
merger. Considering the amount of responsibilities that come with a career in investment
banking, one must be able to manage stress well.
A young career starting in investment banking is infamous for the large amount of hours.
One should be willing to work long hours that go well beyond the normal 40 hours a week
(Russell, n.d.). In fact, many investment bankers put in about 100 hours. According to a former

Inquiry: Investment Banking

investment banker, Julia La Roche (2013), all of these hours do not include intense mental and
physical strength, but it still means being in the office for 100 hours. An early career in
investment banking calls for many hours in office, but as you climb the ladder and take on more
responsibility, you will travel and be in front of clients more often.
Advancing ones position in an investment bank is fairly straightforward. The major
differences between positions is the qualifications and training required. The first job one may
get right out of an undergraduate program is an analyst position. This is the position that has the
most hours in the office, and one will be spending the majority of the time creating pitch books,
or PowerPoint presentations, and doing analytical work (Investment Banker Career Paths,
n.d.). In order to become an analyst, one should have some kind of business degree. It is also
helpful to obtain an internship at an investment bank prior to graduating. Many investment
banks hire from their internship programs.
Becoming an associate is the next level in an investment bank. There are two separate
ways people become associates. One is straight out of an MBA program, and the other is from a
promotion as an analyst. As one can see, an MBA is not required for the associate level, but it is
admired. Put simply, an associates job is to manage their analysts. This includes assigning them
work to be completed, as well as revising their work. It depends on for which bank one is
working, but usually associates are promoted to Vice President after three years (Investment
Banker Career Paths, n.d.). Obviously, as one progresses through the levels of investment
banking, the responsibilities increase.
Vice Presidents at investment banks manage the two levels below them, associates and
analysts. According to a former Goldman Sachs banker, Michel, Vice Presidents also help to
manage clients on a daily basis (as cited in Butcher, 2004). Similar to the advancement of an

Inquiry: Investment Banking

associate, many Vice Presidents earn their position after serving at the associate level for three
years. The top and most prestigious level of an investment bank is Managing Director. This role
requires one to not only have expert knowledge of the financial markets, but to also build and
foster relationships with current and future clients (Butcher, 2004). Making ones way to the top
of an investment bank will take a significant amount of experience in the industry.
Although investment bankers work an extensive amount of hours, they are compensated
quite nicely. In fact, they have some of the most attractive earnings in the financial industry. At
the lowest position, an analyst, one can expect to earn from $70,000 to $350,000 depending on
the number of years worked for the bank. Associates earn $150,000 to $500,000, also depending
on how many years of experience. Vice Presidents earn $350,000 to an astounding 1.5 million
dollars. And finally, Managing Directors earn anywhere from half a million dollars to twenty
million dollars. These are rough estimates of compensation that rely on the amount of deals
taken on by investment banks, as well as the overall size of the banks (Investment Banking
Salary & Compensation, n.d.). Encouragingly, the U.S. Bureau of Labor Statistics has predicted
an eleven percent growth of jobs in the investment banking industry (University Alliance, n.d.).
This rise is due to a large retiring population of baby boomers in the coming years. Being
proactive and securing an internship with an investment bank while pursuing ones
undergraduate degree is an advantageous strategy to secure a spot in this industry.

Inquiry: Investment Banking

5
References

Butcher, S. (2014, October 29). Banks' weird hiearchies: What analysts, associates, VPs, MDs do
really. Retrieved November 25, 2015, from http://news.efinancialcareers.com/usen/167611/banks-weird-hierarchies-analysts-associates-vps-mds-really/
Investment Banker Career Paths. (n.d.). Retrieved November 25, 2015, from
https://www.wallstreetprep.com/knowledge/investment-banking-careers/
Investment Banking Salary & Compensation, Average Bonus in Banking. (n.d.). Retrieved
November 25, 2015, from http://www.wallstreetoasis.com/salary/investment-bankingcompensation
Russell, A. (n.d.). The Job Description of an Investment Banking Analyst. Retrieved November
25, 2015, from http://work.chron.com/job-description-investment-banking-analyst17910.html
Roche, J. (2013, April 16). A Former Banker Explains How Wall Streeters Work 100 Hours A
Week and Keep Their Social Lives. Retrieved November 25, 2015, from
http://www.businessinsider.com/how-bankers-work-100-hours-per-week-2013-4
University Alliance. Investment Banker Career and Salary Profile. (n.d.). Retrieved November
25, 2015, from http://www.floridatechonline.com/resources/accountingfinance/investment-banker-career-and-salary-profile/