As a recent graduate looking into the possibility of a career in banking you will be asking the important question what kind of investment banking salary can I expect? Here is an investment banking salary run down to give you an idea of what is out there presently. We start with the position of junior or assistant investment analyst, this position requires a bachelor's degree and the investment banking salary associated with this position (after bonus) is between $60,000 and $70,000. If you happen to have an MBA after bonus, you can expect the associate investment banking salary to be between $80,000 - $150, 000 per year. Of course different firms will be offering different salaries and these figures are just guidelines for an investment banking salary for these positions.
The investment banking salary will vary from firm to firm and the locality of where you live. The bonuses offered included in the investment banking salary often vary as well but they are roughly between 10 - 50% of the investment banking salary at the beginning of your career and can grow to as much as three times your investment banking salary later on, (subject to firm and location). Some firms are including an equity provision that does not kick in financially for at least three years into their investment banking salary scale. The safeguard of the three years minimum service discourages employee turnover and also shelters the analyst from taxes in the meantime.
You may be wondering if your investment banking salary will be attacked under the TARP program. Bear in mind, that not all firms took advantage of the bailouts and so they are not subject to the public negativity at this time. Banks will continue to pay good bonuses so don't worry about your investment banking salary, it will continue to grow even in these troubled times. Having said that, if you are working for a firm that pays less than what you expected, and your investment banking salary is lower than what you wanted, don't be discouraged, the wealth of knowledge that you will receive and the networking you will be able to do will be worth more than the salary in the in the long run. This experience is what you crucially need to advance your career. Generally, the investment banking salary is down by 40% to 80% in some sectors since 2007, but they are expected to pick up in 2009 and 2010.