2024 Investment Banking Compensation Leaders: Which Banks Pay the Most?
Investment banking continues to be one of the highest-paying career paths in finance, with compensation packages that far outpace most other industries. Our analysis of the 2024 Investment Banking Compensation Survey reveals significant variations across titles and institutions, providing crucial insights for professionals evaluating their market value. In this preview, we highlight some key findings from our comprehensive compensation report, which offers detailed breakdowns by title, bank type, group, geography, and more.
Associate Compensation: Elite Boutiques Take the Lead
At the Associate level, compensation differences between firms have become increasingly pronounced, creating opportunities for strategic career moves that can significantly impact earnings.
Associate 1 compensation leaders:
Evercore stands as the undisputed compensation leader for first-year associates, offering an average total compensation package of $355,000 in 2024. This represents a substantial premium over most competitors and reflects Evercore’s aggressive talent acquisition strategy at the post-MBA level. Their premium pricing for Associate talent has forced competitors to respond, creating upward pressure across the market.
Associate 2 compensation leaders:
As associates progress to their second year, Evercore maintains its compensation leadership with packages averaging $396,667, representing a substantial year-over-year increase that rewards developing expertise and client skills. TD Bank follows closely at $393,333, showing remarkable strength for a Canadian institution competing directly with elite American boutiques.
JPMorgan rounds out the top three with Associate 2 compensation averaging $380,000, demonstrating their willingness to pay competitively at this level to retain talent that might otherwise be lured to boutiques.
Associate 3 compensation leaders:
By the third year, PJT Partners takes the compensation crown with packages averaging $445,000, reflecting their strategy of heavily investing in experienced associates approaching VP consideration. Jefferies follows extremely closely at $443,000, with TD Bank, Wells Fargo, and Citi completing the top five at $435,000, $420,000, and $410,000 respectively.
The increasing compensation spread at the Associate 3 level—with top payers exceeding $440,000 while others hover below $360,000—creates significant incentives for lateral movement, particularly for high performers seeking to maximize earnings before potential VP promotion.
Want the complete picture of Associate compensation across all banks, regions, and industry groups? Our detailed compensation report provides comprehensive data including base salary, bonus ranges, and year-over-year changes across dozens of firms.
Vice Presidents: The Critical Career Stage
The Vice President level represents a critical career juncture where compensation differences between firms become even more pronounced, with variations of $200,000 or more for the same title between institutions.
VP 1 compensation leaders:
Evercore dominates VP 1 compensation with packages averaging an extraordinary $600,000, setting a new market ceiling that stands significantly above even their elite boutique peers. This premium positioning allows Evercore to attract not only internal promotions but also external talent from competitors seeking to maximize earnings.
VP 2 compensation leaders:
Moelis leads the VP 2 category with compensation packages averaging $625,000, representing a significant year-over-year increase that rewards developing expertise and expanded client relationships. Barclays and Wells Fargo follow at $582,500 and $540,000 respectively, with Piper Sandler and Citi completing the top five at $525,000 and $524,857.
The strong showing from Barclays demonstrates their commitment to competing for talent in the American market despite broader challenges in their European investment banking business. Piper Sandler’s appearance in the top ranks shows how middle market firms can sometimes offer competitive compensation to attract specific industry expertise.
VP 3 compensation leaders:
By the VP 3 level, Moelis maintains its compensation leadership with packages averaging $723,333, demonstrating their consistent premium strategy across multiple VP levels. Morgan Stanley makes a strong showing at $690,000, followed by TD Bank, Wells Fargo, and William Blair at $640,000, $630,250, and $627,500 respectively.
The appearance of William Blair in the top five highlights how specialized middle market firms can compete directly with bulge brackets and elite boutiques at the senior VP level, particularly in their core industry verticals where they maintain strong market positions.
For a detailed breakdown of VP compensation by firm, region, and industry group—including incentive structures, promotion timelines, and deferred compensation practices—our comprehensive report provides the data you need to evaluate your market position.
Directors and Managing Directors: Where the Real Money Is
At the Director and Managing Director levels, compensation reaches its peak, with seven-figure packages becoming standard and significant differences between firms based on both institutional strategy and individual performance.
Director compensation leaders:
Lazard leads Director compensation with packages averaging $841,667, setting a market benchmark that exceeds both bulge brackets and many other boutiques.
Managing Director compensation leaders:
At the Managing Director level, compensation differences become truly dramatic, with packages at top firms exceeding $3 million while others struggle to surpass $1 million. A group of confidential elite boutique firms leads the market with MD packages averaging an extraordinary $3,047,500, likely representing a combination of guaranteed compensation and performance-based upside for rainmakers.
Jefferies demonstrates remarkable strength with MD compensation averaging $2,183,333, positioning them well ahead of traditional bulge brackets and many boutiques. Citi leads the traditional bulge brackets at $1,262,500, followed by Bank of America Merrill Lynch and Scotiabank at $1,189,167 and $950,000 respectively.
The million-dollar variations between firms for the same MD title demonstrate how compensation at this level is increasingly tied to individual performance and revenue generation rather than standardized bands. Top-performing MDs at elite institutions can earn multiples of what average performers receive at the same firms, creating a compensation landscape where individual negotiation and performance matter more than institutional affiliation.
Group Head elite compensation:
At the pinnacle of the investment banking hierarchy, Group Heads overseeing major industry verticals or regions can command extraordinary compensation packages that rival or exceed those of many corporate CEOs. While our sample size for specific firms is limited, the data on bank types reveals that middle market banks collectively report Group Head compensation averaging $3,550,000, likely reflecting the outsized impact that successful group leaders can have on these focused institutions.
Our complete compensation report provides detailed insights into Director and MD compensation structures, including performance-based variability, deferred compensation practices, clawback provisions, and non-cash benefits that impact total remuneration packages.
Beyond the Headlines: What the Full Report Reveals
While this preview highlights some key findings from our analysis, the complete 2024 Investment Banking Compensation Report provides far more comprehensive insights that can guide your career decisions and negotiations:
Detailed compensation by industry group: Discover which sectors command premium compensation, from healthcare and technology to financial institutions and energy. Our analysis reveals compensation variations of 15-25% between the highest and lowest-paying groups at the same institutions.
Geographic differentials across major banking centers: Compare compensation between New York, San Francisco, Chicago and other global financial centers. Our data reveals how regional premiums have evolved in the post-pandemic landscape of flexible work.
Performance-based variability within titles: Understand the true range of compensation within each title, from minimum to maximum packages based on performance. At some institutions, top performers earn more than 50% above the average for their title.
Comprehensive benefits and lifestyle factors: Beyond cash compensation, our report examines work-life balance, promotion timelines, exit opportunities, and non-cash benefits that impact total value propositions.
Deferred compensation and retention practices: Detailed analysis of how institutions structure their compensation to promote retention, including vesting schedules, equity components, and clawback provisions.
Year-over-year trends: Track how compensation has evolved over the past three years and gain insights into market conditions and institutional strategies.
The difference between being adequately compensated and maximizing your earnings potential often comes down to information advantages and strategic career positioning. In an industry where compensation differences can amount to hundreds of thousands of dollars annually for the same title, investing in comprehensive market intelligence represents one of the highest-return decisions a banking professional can make.
To access the complete 2024 Investment Banking Compensation Report with detailed breakdowns by title, firm, group, and geography, visit our website or contact our research team directly. Whether you’re negotiating an offer, preparing for year-end discussions, or planning your next career move, our data provides the objective benchmark information needed to maximize your compensation potential.
[Note to readers: This blog post provides a preview of findings from our comprehensive compensation analysis. For the complete data set of firms across all banking levels, please purchase the full report.]
