The Perks and Drawbacks Of Being an Investment Banker

By AJA CARMICHAEL
April 18, 2008 10:18 a.m.

The job: Investment banker

The pay: Varies by educational background and experience. A new associate hired in the first half of 2006, with an M.B.A., is expected to make around $185,000, according to Alan Johnson, managing director of Johnson Associates Inc., a pay consultancy in New York. Recent hires for analyst posts are making between $65,000 and $70,000. And an associate can rake in an annual bonus of between $70,000 and $190,000, while analysts' bonuses can range from $30,000 to $35,000, banks and recruiters say.

The hours: Long. A minimum of 70 hours a week, young bankers say.

Benefits: Standard health-care, dental, vision and prescription-drug benefits and a 401(k) plan are common. Many firms don't offer pension plans, Mr. Johnson says.

Other incentives: Can include access to the company gym and discounts on museum, sports and theater tickets. Employees working late hours may also receive car and meal services.

Career path: Most banking firms hire analysts from their company's summer internship programs. Advancement to an associate investment-banker post takes about three years.

Best part of the job: A lot of responsibility early on in a career. "Within any project I am able to be hands on," says Gregory Hersh, 23, an analyst specializing in mergers and acquisitions at Merrill Lynch & Co. in New York. "I get to see the drivers in the industry very early on."

Worst part of the job: The schedule. "I might have to work weekends, holidays and postpone trips," says Mr. Hersh, who has adjusted to the time-consuming job. "There are a lot of great challenges working for an investment bank and you have to make a lot of sacrifices with personal time."

Hiring: For further details visit www.sia.com or www.ml.com/careers.

Write to Aja Carmichael at aja.carmichael@wsj.com