It’s Friday afternoon. You’ve been paid your bonus. You’re nearing the end of another long week. You have that urge to quit your job and create that app for locating the nearest petting zoo.
The chart below, taken from an archaic study on investment banking career choices by someone at Stanford Graduate School of Business is a reminder why you must not do this.*
*Ok, the chart refers to pay for people working in each cohort during the years 1996 and 1998. However, these were not atypical years for banking compensation (if anything pay in 1998 was depressed by the Asian crisis). Banking pay may not increase quite so exponentially these days, but the industry still pays a lot better than most alternatives. One London-based search firm claims M&A analysts can still earn £100k in year one and £280k in year three… On the other hand, 60% of start-ups allegedly fail by year four.