An Investment Banking VP Salary brings in an average base salary of $250,000 to $300,000 per year and typically receives an average annual bonus of $200,000 to $400,000, according to Business Insider. At bulge bracket investment banks and elite boutiques, the mean base compensation ranges from $400,000 to $500,000 per year, with bonuses reaching as high as $1 million per year.
The Unspoken Truth about Investment Banking VP Salaries
Investment banking VP salaries are divided into two categories base salary and bonus. For example, a senior investment banker at Goldman Sachs may earn $300,000 in base compensation, with a potential for an additional $200,000 bonus of $500,000. The combined $700,000 does not include equity or other forms of compensation that are relatively common among Voice Banking and senior bankers. The Investment Banking VP Salary compensation is broken down into three broad categories: compensation, bonus, and benefits. Base compensation is defined as an annualized salary that’s paid every year.
The actual amount you’ll earn will vary by your level of experience. For example, a first-year investment banker might expect $150,000 in base pay with an additional $75,000 in bonuses for a total of $225,000. At the opposite end of the career, senior or managing director base salaries typically range from $250,000 to $350,000, with a potential for an additional $200,000 to $400,000 in bonuses. Benefits are typically a percentage of your base compensation, depending on your country and government regulations. Investment banking VP salaries can vary depending on your country, level of experience, and performance.
For example, a first-year investment banker in Germany can expect a base compensation between €130,000 and €250,000 plus an additional bonus of €35,000 to €65,000 for total compensation of up to €305,000. At senior levels meaning managing director or above, annual base salaries typically range from $190,000 to $350,000, with additional bonuses ranging from $150,000 to over $400.00. It’s also common for bankers at Goldman Sachs or Morgan Stanley, some of the top U.S based Investment Banking VP Salary, to receive equity in addition to their salaries typically worth millions after four years at those companies.
The High Cost of Being an Investment Banking VP
An Investment Banking Vp Salary earns a decent salary, with an average pay of around $280,000. But according to salary data from Glassdoor, that isn’t always enough to make ends meet in New York City or San Francisco, two of the nation’s most expensive cities. Even if you live outside one of those regions, you could still struggle to get by on a senior banker’s salary. What makes matters worse is that investment bankers receive most of their cash compensation in December. And are expected to use it to cover expenses when rents are typically at their highest, writes Thomas Challenger of Challenger Gray & Christmas Inc., in The Wall Street Journal.
An Investment Banking VP Salary is typically between $250,000 and $300,000. But as Challenger points out, that’s not enough to cover living expenses for most senior bankers living in expensive cities like New York or San Francisco. Even if you can afford an apartment in those cities, he notes that your cost of living likely includes other necessities, Christmas gifts for family members and friends, airfare to visit them on vacation, and enough food during Thanksgiving dinner. Your essential cost of living may be closer to $350,000 per year, which doesn’t even factor in retirement savings.
The Top Investment Banking VP Salaries in the US
Although Investment Banking VP Salary has fallen over recent years, bonuses remain attractive. A look at what you can expect based on your experience and credentials. 2017 marked a rocky year for investment banking. When bonuses went up in 2016, equity bankers experienced a double-digit decline in compensation from 2015. Although their comp recovered somewhat, it’s still about 15% below where it was four years ago. A new report from Company puts an average range on investment banking compensation.
Based on information from more than 60,000 employees across 11 European countries and 17 US locations, it estimates the average base Investment Banking VP Salary at $254,800 and bonuses at $221,600 in 2017. The best-performing analysts earned a bonus of nearly $300,000, while Associates years were in line for a base of just over $120,000 U.S based Vice Presidents at bulge bracket firms earn a base of around $275k and a year-end bonus just north of $200k. At elite boutiques and boutiques with less than 30 people in total employee headcount, Vice Presidents earn between $239k and $298k.
Advantages of Investment Banking VP Salary
Investment Banking Vp salaries are advantageous because they offer the potential to earn a significant income. They also offer stability and the opportunity to work in a growing field. There are many different types of investment banking VP salaries, so it is essential to know what you are looking for when searching for a job. Investment banking VP salaries can be very high, so it is essential to ensure you are getting the most for your money.