Renowned for their generous salary, investment banks can pay young graduates straight out of college hundreds of thousands of pounds and dollars. But have you ever found out which investment bank pays the worst? Starting from the lowest paid to the top paying investment banks for first-year analysts in London, this paper will explore the specifics. Spoilers: Goldman Sachs leads the list; Deutsche Bank comes last.
Understanding the Structure: Base Salaries, Bonuses, and Total Compensation
Let us define the framework before we explore the figures. We'll talk about basic pay, bonuses, and overall compensation—that is, base salary plus bonuses. All numbers shown are pre-tax; next is what analysts should anticipate to bring home monthly after tax.The Lowest Paying Investment Banks for First-Year Analysts
The Lowest Paying Investment Banks for First-Year Analysts
1. Deutsche Bank
- Base Salary: £65,000
- Bonus: £23,000
- Total Compensation: £88,000
- After Tax Annual Take-Home: £46,749
- Monthly Take-Home Pay: £3,896
- After Tax Total Compensation: £60,089
- Monthly Compensation After Tax: £5,007
2. UBS and Barclays (Joint Position)
- Base Salary: £65,000
- Bonus: £27,000 (average)
- Total Compensation: £92,000
- After Tax Annual Take-Home: £46,749
- Monthly Take-Home Pay: £3,896
- After Tax Total Compensation: £62,400
- Monthly Compensation After Tax: £5,200
3. Morgan Stanley
- Base Salary: £70,000
- Bonus: £24,000
- Total Compensation: £94,000
- After Tax Annual Take-Home: £49,649
- Monthly Take-Home Pay: £4,137
- After Tax Total Compensation: £63,569
- Monthly Compensation After Tax: £5,297
4. JP Morgan and Credit Suisse (Joint Position)
- Base Salary: £70,000
- Bonus: £26,000
- Total Compensation: £96,000
- After Tax Annual Take-Home: £49,649
- Monthly Take-Home Pay: £4,137
- After Tax Total Compensation: £64,729
- Monthly Compensation After Tax: £5,394
The Highest Paying Investment Banks for First-Year Analysts
5. Bank of America Merrill Lynch
- Base Salary: £65,000
- Bonus: £35,000
- Total Compensation: £100,000
- After Tax Annual Take-Home: £46,749
- Monthly Take-Home Pay: £3,896
- After Tax Total Compensation: £67,049
- Monthly Compensation After Tax: £5,587
6. Citigroup
- Base Salary: £70,000
- Bonus: £32,000
- Total Compensation: £102,000
- After Tax Annual Take-Home: £49,649
- Monthly Take-Home Pay: £4,137
- After Tax Total Compensation: £67,809
- Monthly Compensation After Tax: £5,651
7. Goldman Sachs
- Base Salary: £65,000
- Bonus: £41,000
- Total Compensation: £106,000
- After Tax Annual Take-Home: £46,749
- Monthly Take-Home Pay: £3,896
- After Tax Total Compensation: £69,329
- Monthly Compensation After Tax: £5,777
Comparing Total Compensation: Pre-Tax vs. Post-Tax
While those at Deutsche Bank make £88,000, the top paid analysts at Goldman Sachs receive £106,000 altogether. Pre-tax the difference is £18,000; post-tax it reduces to £9,000.Why Do People Enter Investment Banking Despite Long Hours?
Long working hours—usually between 80 and 100 hours a week—are well recognized in investment banking. Roughly speaking, an analyst working 90 hours a week for 50 weeks puts in 4,500 hours year. Given a total pay of £100,000, this comes to about £22.22 per hour.Why then do individuals select this route? Investment banking provides outstanding exit options even if the demanding hours are involved. The knowledge and abilities acquired help one move toward higher employment in sectors such asset management, hedge funds, and private equity.
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