Investment Banker Starting Salary: What To Expect In 2023

Introduction

If you’re considering a career in investment banking, one of the first things you’ll want to know is what kind of salary you can expect. After all, investment banking is known for its high salaries and bonuses. But with the job market constantly evolving, it can be hard to know exactly what to expect. In this article, we’ll take a look at what investment banker starting salaries are like in 2023.

What is an Investment Banker?

Before we dive into salaries, let’s first define what an investment banker is. An investment banker is a professional who helps companies and governments raise capital by underwriting and selling securities. This can include things like stocks, bonds, and other financial instruments. Investment bankers also provide advice on mergers and acquisitions, and help clients navigate complex financial transactions.

Investment Banker Starting Salaries in 2023

So, what can you expect to earn as an investment banker in 2023? The starting salary for investment bankers can vary widely depending on a number of factors, including the type of firm you work for, your level of experience, and the location of the job. However, according to industry experts, the average starting salary for investment bankers in 2023 is expected to be around $110,000 per year.

Factors That Affect Investment Banker Salaries

As mentioned, there are a number of factors that can impact investment banker salaries. Let’s take a closer look at some of the most important ones:

1. Type of Firm

The type of firm you work for can have a big impact on your salary. Investment banking jobs at large, global firms like Goldman Sachs or JPMorgan Chase are typically among the highest paying, while smaller boutique firms may offer lower salaries.

2. Level of Experience

Your level of experience is another important factor. Junior investment bankers just starting out can expect to earn less than those with several years of experience under their belts.

3. Location

The location of the job can also impact your salary. Investment bankers working in major financial hubs like New York City or London can expect to earn more than those working in smaller cities or towns.

Bonuses and Other Perks

In addition to their base salary, investment bankers also typically receive bonuses and other perks. These can include things like stock options, signing bonuses, and performance-based incentives. In fact, bonuses can often make up a significant portion of an investment banker’s total compensation. In 2023, the average investment banker bonus is expected to be around $50,000.

Career Outlook for Investment Bankers

So, what does the future hold for investment bankers? According to the Bureau of Labor Statistics, employment of securities, commodities, and financial services sales agents (which includes investment bankers) is projected to grow by 4% between 2022 and 2032. This is about as fast as the average for all occupations. Despite some concerns about automation and other technological advancements, there is still expected to be strong demand for investment bankers in the coming years.

Conclusion

If you’re interested in a career in investment banking, you can expect to earn a starting salary of around $110,000 per year in 2023. However, keep in mind that your salary will depend on a variety of factors, including the type of firm you work for, your level of experience, and the location of the job. Additionally, bonuses and other perks can often make up a significant portion of an investment banker’s total compensation.

People Also Ask

What is the highest paying investment banking job?

The highest paying investment banking jobs are typically those at large, global firms like Goldman Sachs or JPMorgan Chase. Within these firms, managing directors and other senior executives can earn salaries in the millions of dollars.

Do investment bankers make a lot of money?

Yes, investment bankers typically make a lot of money. While salaries can vary widely depending on a number of factors, investment bankers are known for their high salaries and bonuses. In 2023, the average investment banker starting salary is expected to be around $110,000 per year, with an average bonus of around $50,000.

Is investment banking a good career?

Whether or not investment banking is a good career choice depends on your individual goals and preferences. Investment banking can be a demanding and high-pressure career, but it can also be financially rewarding and offer opportunities for career advancement. Ultimately, it’s up to you to decide if investment banking is the right career path for you.