This comprehensive list offers valuable insights into the world of investment banking, particularly for first-year analysts in 2023. The ranking of investment banks by their compensation packages for new graduates is especially informative for those aiming to enter this competitive field.
The list interestingly reveals that elite boutique banks, which specialize in specific areas, tend to offer higher compensation compared to some of the more well-known, larger banks. This challenges common perceptions about the industry, particularly for those who might only be familiar with names like Goldman Sachs, JP Morgan, and Morgan Stanley.
For first-year analysts, the compensation structure typically includes a base salary, a signing bonus, and a performance bonus. The total compensation can vary significantly based on individual and bank performance, as well as location.
Top 10 Investment Banks by First-Year Analyst Pay (New York, 2023)
Here are the key highlights from the list of top investment banks by first-year analyst pay in New York for 2023:
- Centerview: Tops the list with a total compensation of $220,000, including a $130,000 annual salary and a $90,000 annual bonus. Centerview is known for advising on major deals and offers a $50,000 signing bonus for a 3-year commitment.
- Evercore: Offers a total compensation of $210,000, split between a $120,000 annual salary and a $90,000 annual bonus. Evercore has a strong reputation in mergers and acquisitions.
- Lazard: Provides a total compensation of $205,000, with a $120,000 annual salary and an $85,000 annual bonus. Lazard is renowned for its mergers and acquisitions practice.
- Rothschild: Offers $198,000 in total compensation, which includes a $113,000 annual salary and an $85,000 annual bonus. Rothschild & Co is a well-regarded multinational boutique investment bank.
- Guggenheim: Pays a total of $190,000, including an $110,000 annual salary and an $80,000 annual bonus. Guggenheim is a notable elite boutique bank.
- Bank of America: Provides a total compensation of $186,000, with an annual salary of $110,000 and a bonus of $76,000.
- Citi: Offers $180,000 in total, including an annual salary of $110,000 and a bonus of $70,000.
- Goldman Sachs: Pays a total of $178,000, comprising a $110,000 salary and a $68,000 bonus.
- JP Morgan: Offers a total compensation of $175,000, split between a $110,000 salary and a $65,000 bonus.
- Morgan Stanley: Rounds up the list with a total compensation of $170,000, including a $100,000 salary and a $70,000 bonus.
It is important to note there are many other well-paying investment banks that may have been excluded due to lack of data. Notable banks not on this list who have been known to pay quite well are Qatalyst, PJT, Liontree, Perella, Allen & Co. etc. This ranking, based on data from Litquidity and Levels.fyi, demonstrates the lucrative nature of investment banking for top-performing graduates, especially in elite boutique banks. It also reflects the dynamic nature of the industry, where smaller, specialized firms are increasingly competitive in compensating their talent.
