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How much does an average director make?

What is the average percentage of all investment banking associates who make it to VP? How many make it to Director and so on (in the US)?

  • I'm considering a career change(currently a software engineer) to investment banking by doing an MBA. I was curious what percentage(on average) of associates make it to the VP level and what percentage makes it to the Director level and so on.  I understand it varies by bank (BB/MM etc), but just curious about numbers based on what you have seen in your bank and across other banks you know of. What do the associates who don't cut into the VP level end up doing ?

  • Answer:

    It depends on the division, but in quantitative finance/technology, people are usually hired at the associate level and promotion to VP is pretty much automatic after three years.  Of the VP, about one fifth make it to senior VP or executive director and a fifth of those make MD. If you should want a job in an investment bank, you'll find a lot easier to be hired as a software engineer than as an MBA.  If you do an MBA then you'll start as an analysts, whereas as an experienced software engineer, you can get hired at the associate level.

Joseph Wang at Quora Visit the source

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I do not know the exact statistics but not many make it to the VP or director levels. I believe that most leave IB and either go to companies or other financial institutions. Many financial skills learned at IB at transferable to other workplaces. Hence, working for IB is good except for the hours.

Pureum Kim

The statistics vary widely from year to year. In a bull market, far more people get promoted for reasons that are probably obvious (there's more to do, the group or the overall bank is making more money and doesn't need to worry as much about payroll expenses, it's harder/ more expensive to recruit externally etc). In a bear market, the bar is set higher. The real cut off comes - depending on the bank - at the Director or Managing Director level. That is by far the hardest transition to make, as it involves switching from a role in which you are focused almost entirely on execution and support for senior bankers, to one in which you have a revenue target and need to sell, by yourself. They are very different skill sets and lots of people who are great at the former have no ability or interest in the latter.

Anonymous

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