investment bankersInvestment bankers are typically advisers and middle men for companies seeking financing (equity, debt, or derivative) from the financial markets and advisers on mergers & acquisitions, for example. In the age of financial innovation, the need for professional investment advice has never been greater, both for investors and companies. Investment bankers typically serve the bigger corporate clientèle, that needs to find ways to finance or exploit opportunities in the markets. Typical investment banking company raises debt and equity capital from the financial markets and advises firms on financial matters of significant size, such as when purchasing a competitor (in an acquisition). A big market for investment bankers is the market for Initial Public Offerings (IPO), where companies list to the stock market, and investment bankers guarantee or facilitate the sale of the stock to the public. Investment Banking - CompaniesThere are thousands of investment banks in the world. However, the top tier of these companies have the most of the action. These top tier companies include:
Investment Banking CompensationOftentimes, investment bankers are seen as the stars of the financial profession, due to high professional expectations and requirements for a banker. The salaries paid in investment banking reflect this fact. Most start in investment banking as an analyst, fresh from a top tier university with a Bachelor's degree in hand. The starting salaries for a first year analyst vary greatly, typically still staying under $100,000 per year, but for selected few the salary may go well above $100,000, including a signing bonus. Due to high stress levels on the job, many do quit investment banking after two-three years on the job. However, the rewards for those that make the cut are substantial. For example, a Vice President with 3-6 years experience may make closer to a million bucks a year, before bonus (bonuses may exceed six figures on a good year). For the top ranks with job experience in 5-10+ years, the salaries are way above what you'd expect in a, say, manufacturing company, and may exceed tens of millions of dollars a year, before bonus. |