Salary as an investment banker (Image:
Sinan erg, unsplash)
Investment banking is still considered one of the best paid career paths in the financial sector.
The salaries are not only significantly higher than in other professions, but also the bonuses often reach astronomical heights. No wonder that many graduates of business school, universities and elite programs want to gain a foothold in this industry.
But what can you actually earn? And what does it really matter when paying in investment banking?
Entry salaries and first career steps: How to start investment banking
If you enter investment banking, you can look forward to a high basic salary – even as a young professional.
The salaries for Beginners are around € 75,000 gross a yearso round 6,250 € per month. Especially analysts benefit directly from a high income here.
A typical entry content as Investment banking analyst lies between € 80,000 and € 100,000 annually. But that also depends on whether you start with a bachelor’s or master’s degree.
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With a bachelor’s degree: approx. 70,000 € annually
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With a master’s degree: approx. 80,000 € annually
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With a doctorate: approx. 85,000 € annually
It is already clear here: the academic degree actually makes a difference. And with a little professional experience (e.g. through internships or trainee programs), it can be significantly more.
This is how your salary develops with increasing professional experience
Experience pays off properly in investment banking. If you assert yourself in the industry for a few years, you can easily double your salary – or more.
With few years of professional experience Are annual salaries around the 90,000 € quite common. If you 6 to 9 years are therethey are at about € 103,000 annually.
And if you after more than 10 years Create in management positions, then it becomes really interesting: salaries off 120,000 € Upwards are absolutely realistic here.
And even if you are in the position of Investment analysts remain, still earn average after 10 years € 79,900 gross per year.
Salaries by positions
The hierarchy in investment banking is clearly regulated.
From analysts to managing director, not only your responsibility increases, but above all your salary:
| position | Average content (annually) |
|---|---|
| Investment banking analyst | 76,000 € |
| Investment Banking Associate | 176,000 € |
| Vice President | 335,000 € |
| Managing Director (top level) | Over € 675,000 |
And these are just the basic salaries. What the numbers do not show here is the gigantic influence of bonuses. And that’s exactly what we look at now.
Bonuses and additional remuneration in investment banking
Those who deserve really well benefit from the bonuses. This is also the reason why many investment bankers often end up in completely different spheres with their income.
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Average bonus (2024): 152,000 € – and that was an increase of 36 % for the previous year
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Material risk taker (typically managing directors): Bonus of 966,000 € (50 %increase).
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Normal bonus range: 60,000 € to € 350,000 yearly.
Translated this means: an investment banking analyst that is actually a basic content of 80,000 € has loose through bonus 115,000 € annually come.
Of course, the whole thing is regulated by the EU bonus limit, which provides that bonuses are nothing more than that Double the fixed content may be. However, this only applies to Europe. In London there are bonuses from to the 25 times the fixed content possible.
Location makes a big difference: where is investment banking worth the most?
How much you earn depends on, of course, on where you work.
In Germany is Frankfurt am Main particularly attractive as a financial center.
Other cities usually lag behind. In Frankfurt, salaries are higher, especially due to the concentration of international investment banks.
Influent factors on the content in investment banking
Some things affect their investment banking content particularly strongly:
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Professional experience: The more experience, the more money.
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Educational qualification: Higher qualifications = higher entry content.
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Position: The further you are, the more you earn.
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Company size: Large banks often pay better than small institutes.
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Location: Frankfurt beats Munich. London beats Frankfurt.
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Specialization: In areas such as M&A (Mergers & Acquisitions), more is often paid than in other departments.
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Performance: Those who do a lot get high bonuses.
Conclusion: Is investment banking really worth?
Clearly: Investment banking is a professional field with extremely high earning opportunities.
Especially through bonuses you can make huge jumps here. If you want to get into this industry, you should know that the requirements are high – not only in terms of performance, but also with the Working hours.
But if you are willing to give a lot, you will also be paid very well. Especially in the large financial centers such as Frankfurt, London or New York.
| position | Average content (annually) | Salary area (annually) | Bonus area (annually) | Total remuneration (annually) |
|---|---|---|---|---|
| Investment banking analyst | 76,000 € | € 70,000 – € 100,000 | € 60,000 – € 115,000 | € 130,000 – € 215,000 |
| Investment Banking Associate | 176,000 € | € 150,000 – € 200,000 | € 100,000 – € 200,000 | € 250,000 – € 400,000 |
| Vice President (VP) | 335,000 € | € 280,000 – € 390,000 | € 150,000 – € 300,000 | € 430,000 – € 690,000 |
| Director / Executive Director | 450,000 € | 350,000 € – 500,000 € | € 200,000 – € 350,000 | € 550,000 – € 850,000 |
| Managing Director (MD) | 675,000 € | 500,000 € – € 750,000 | € 250,000 – € 350,000 | € 750,000 – € 1,100,000 |
| Material risk taker (MRI) | 966,000 € | € 800,000 – € 1,200,000 | 300,000 € – 500,000 € | € 1,100,000 – € 1,700,000 |