In case you needed any further confirmation that bright young graduates lured into investment banking earn vastly more than their peers – or that money doesn’t equal happiness – here’s a new report on 27 entry level roles and their pay.
A 22-year-old investment banker called ‘Lynn’ interviewed anonymously says that total compensation comes in (at the upper end) at $150k. Yes, this is good, but when you compare it to what other fresh graduates are earning, it appears obscene. Fashion journalists are earning $22k, chemists earn $35k and even doctors are bringing in a relatively paltry $54k.
Does this mean that trainee investment bankers are basking in their new-found wealth. Not exactly. “No one I know in investment banking is really happy. It’s something that smart but directionless kids looking for prestige or the stereotypical money-chasing kids do,” says Lynn.
Compare this to the fashion reporter scraping by on just $22k: “I want to make my passion a reality and work in a career field that I truly love and want to work in for the rest of my life.”
Separately, Jamie Dimon and James Gorman are both by far the best paid investment bank bosses, and both hold the dual chairman and CEO role at J.P. Morgan and Morgan Stanley respectively. Dimon received a hefty 134% pay rise, while Gorman got a 66% uplift. Most CEOs in banking received around 17% more.
Generally, it’s more lucrative to lead a U.S bank – the average CEO pay at American banks was $20m, compared to $11m at European institutions.
Commerzbank sued by former female employee: “On and off the trading floor, there was a German ‘boys club’ culture at the bank, which I would describe as akin to a college fraternity or ‘frat club.” (Bloomberg)
The Financial Conduct Authority appears to be an example of diversity. It has a 50/50 gender split among its staff and just 36% are 25-34 years old. 34% are 35-44 and the ‘majority’ of heads of department are over 45 (WSJ)
The U.S. is implementing clawbacks! But only for executives (SEC)
Dispelling the myth that MBAs are being hired by private equity firms instead of investment banks (Business Because)
Evercore has poached Goldman Sachs ‘defense’ banker (Bloomberg)
Photo of the first ever Goldman Sachs staff summer outing, complete with comedy moustache in the front right (Twitter)
Business school students want to work for US investment banks, but not European ones (Universum)
Deutsche Bank has finally filled the head of hedge fund consulting role that has been open since last summer (Financial News)
James Gorman’s daughter has just released an album on Spotify. Her dad pushed it out to banker colleagues (Business Insider)