Earnings

[Nameuser2]

AIBU to ask how much do investment bankers earn? If I’m IANBU, care to tell what it is typically?

The salaries vary a lot. Using the internet shows a huge variation too. It’s better to get it from more direct knowledge.

What puzzles me though is beyond splashing the cash on expensive restaurants and big SUVs, what do they do with their money as they do not live with n millionaire row. They have expensive but ordinary houses (think £800k to £1.3 million).

This is light hearted so please don’t get overly bothered by my curiosity. I get it that in the United Kingdom it’s uncouth to ask about salary but isn’t that why the gender pay gap is so big?

What puzzles me though is beyond splashing the cash on expensive restaurants and big SUVs, what do they do with their money as they do not live with n millionaire row.

I thought you said they were flashy?

What do affluent people spend money on? School fees, second homes, boats, lots of investments etc.

I don’t see flashing cash as sensible investment. As I said, expensive restaurants, wine, SUV.

They do pay private school fees but no boats or second homes.

I read it as earrings too and was left

'Investment banker' is used as a broad-brush term to cover a large number of different job functions. True investment bankers have a very different job to salespeople/traders.

Salaries for juniors (associates) on the true investment banking side are still very high, but probably not as high as you would think. They are also likely to be working 100+ hours a week.

Base salaries take a jump once they reach the grade of vice president / director. Managing directors will be on the mega salaries.

Having said that, quantative traders of all grades earn high base salaries. These folks work out the mathematical calculations for complex financial instruments. Requires a minimum 2:1 maths/physics degree from a good university, plus a relevant internship. I knew one who had previously been a rocket scientist.

All salaries will have a base element plus a performance related element ('bonus', paid annually). Bonuses are paid as part cash, part shares. In most places you can't touch/sell the shares for a set period after they have been awarded. If you leave the firm within 6 months of being given a bonus, you have to pay it back. It's longer for conduct related matters, e.g. if a person is sacked becaused they breached rules, bonuses (most likely shares) from the previous 5 years can be taken back.

If the person you know is a true investment banker (rather than one of a number of different roles in an investment bank), I'm sure they will have a private investment portfolio and will be paying vast sums into their pension.

P.s...I also thought this thread was going to be about earrings

I don’t see flashing cash as sensible investment. As I said, expensive restaurants, wine, SUV.

If someone earns a lot of money, they can afford to live comfortably and still invest a lot. It’s be a bit weird if a very high earner shopped in Lidl, charity shops and watched every penny. They can afford to eat out, drink fancy wine, drive a pricey SUV and still invest most of their earnings.

Is it what you know or who you know?