Investment banking is one of the highest-paying entry-level careers in finance, and for good reason — the hours are long, the work is demanding, and the learning curve is steep. But the compensation reflects that intensity. If you are recruiting for investment banking and wondering what you can expect to earn as an analyst, this guide will give you a comprehensive breakdown of base salaries, bonuses, and total compensation across different bank tiers.
Keep in mind that compensation figures change from year to year as banks adjust pay in response to market conditions, competitor moves, and deal activity. The ranges discussed here are based on general industry norms and should give you a solid framework for understanding analyst pay, even as the specific numbers evolve.
How Investment Banking Analyst Compensation Works
Investment banking analyst compensation has two main components:
- Base salary — A fixed annual amount paid in regular paychecks throughout the year. This is the guaranteed portion of your compensation.
- Year-end bonus — A discretionary payment typically made once per year (usually in the summer for analysts, based on the prior year’s performance). The bonus is tied to individual performance, group performance, and the overall profitability of the bank.
Together, base salary and bonus make up your total compensation, often referred to as “total comp” or “all-in comp.” For investment banking analysts, the bonus is a significant portion of total pay — often representing 50% to 100% of the base salary, depending on the year and the bank.
First-Year Analyst Compensation
At the bulge bracket banks — think Goldman Sachs, JP Morgan, Morgan Stanley, and Bank of America — first-year analyst base salaries have generally settled in the range of $100,000 to $110,000 per year. This base level increased significantly in 2021 and 2022 as banks competed for talent during a period of high deal activity, and it has remained elevated since then.
Year-end bonuses for first-year analysts at bulge bracket banks typically range from $50,000 to $100,000 or more, depending on deal flow and individual performance reviews. In strong years, total first-year analyst compensation at a bulge bracket bank can reach $175,000 to $225,000 or higher. In weaker years, total comp may be closer to $150,000 to $175,000.
Elite boutiques — firms like Evercore, Centerview Partners, PJT Partners, and Moelis — often pay at or above bulge bracket levels. These firms compete aggressively on compensation to attract top talent, and their smaller class sizes mean that individual bonus differentiation can be more significant.
Second and Third-Year Analyst Compensation
As analysts progress through the program, both base salary and bonus increase. A second-year analyst at a bulge bracket bank can expect a base salary in the range of $105,000 to $115,000, with bonuses that may be modestly higher than first-year levels. By the third year (for banks that have three-year analyst programs), base salaries may reach $110,000 to $125,000, with correspondingly larger bonuses.
Total compensation for a senior analyst at a bulge bracket or elite boutique can reach $200,000 to $275,000 or more in strong years. This is remarkable for someone who is just two to three years out of college, and it is one of the main reasons investment banking continues to attract top talent from the best universities.
Compensation at Middle-Market Banks
Middle-market investment banks — firms like Houlihan Lokey, William Blair, Baird, Harris Williams, and Jefferies — pay well, though typically somewhat below the bulge bracket and elite boutique levels. First-year analyst base salaries at middle-market firms generally range from $85,000 to $100,000, with bonuses that bring total compensation to roughly $125,000 to $175,000.
The gap between middle-market and bulge bracket compensation has narrowed in recent years as middle-market firms have raised pay to remain competitive. Some of the top middle-market firms pay essentially on par with bulge brackets. The trade-off at many middle-market banks is that while pay may be slightly lower, the hours can be somewhat more manageable and the deal experience more hands-on.
Compensation at Boutique and Regional Banks
At smaller boutique and regional banks, compensation can vary widely. Some well-known boutiques pay competitively with larger firms, while others pay meaningfully less. Base salaries at smaller firms may range from $70,000 to $90,000, with bonuses that are smaller and more variable. Total first-year compensation at a smaller boutique might be in the range of $100,000 to $140,000.
The compensation at smaller firms should be weighed against other factors — including deal experience, mentorship, work-life balance, and exit opportunities. A strong boutique that gives you significant deal exposure can be an excellent launching pad for your career, even if the pay is lower than what you would earn at Goldman Sachs. For more on how to think about the full landscape, check out our investment banking internship guide.
Stub Bonuses and Signing Bonuses
Two additional compensation elements worth understanding:
Signing Bonuses
Some banks offer signing bonuses to incoming analysts, typically in the range of $10,000 to $20,000. These are paid when you start and are usually subject to a clawback if you leave the firm within a certain period (often one year). Not all banks offer signing bonuses, and the practice varies by year and by firm.
Stub Bonuses
Since most analyst programs start in the summer and year-end bonuses are based on the prior calendar year, first-year analysts often receive a “stub bonus” for the partial year they worked. This is typically a prorated amount based on the months worked and is generally smaller than a full year-end bonus.
How Bonuses Are Determined
Analyst bonuses are determined through a combination of factors:
- Bank profitability — The overall revenue of the bank’s investment banking division sets the bonus pool. In years with strong deal activity, the pool is larger.
- Group performance — Your specific group’s revenue contribution affects the bonus allocation. Analysts in groups that had a strong year tend to get larger bonuses.
- Individual performance — Your reviews from senior bankers factor into where you fall within the bonus range for your class year. Being reliable, producing high-quality work, and having a strong attitude all matter.
- Class year — At most banks, there are defined bonus “buckets” or ranges for each class year. First-year analysts have a narrower range; the spread widens as you become more senior.
At the analyst level, bonus differentiation is real but often relatively modest compared to more senior levels. The top-performing first-year analyst might make 20-30% more in bonus than the lowest-performing analyst, but the gap is usually not enormous. This changes significantly at the associate level and especially at the VP and MD levels.
Cost of Living Considerations
Most investment banking analyst positions are based in New York City, where the cost of living is among the highest in the country. Rent, taxes, and daily expenses eat into your compensation significantly. A $200,000 total comp package in New York does not stretch as far as it would in a lower-cost city.
New York City and New York State income taxes are substantial, and when combined with federal taxes, analysts can expect to take home roughly 55-65% of their gross compensation. Still, even after taxes and living expenses, investment banking analysts are able to save meaningfully — especially if they are disciplined about spending.
For analysts based in other cities — such as San Francisco, Chicago, Houston, or London — compensation may be slightly different, and the cost of living equation shifts accordingly.
How Analyst Pay Compares to Other Entry-Level Careers
To put investment banking analyst pay in context, here is how it generally compares to other popular career paths for top graduates:
- Management consulting — First-year consultants at MBB firms (McKinsey, Bain, BCG) earn total compensation in a similar range to banking analysts, though the split between base and bonus differs. For a deeper comparison, see our IB vs. consulting guide.
- Big Tech — Software engineers at top tech companies can earn competitive total comp when factoring in stock-based compensation, though base salaries alone may be lower.
- Private equity and hedge funds — These roles generally pay more than banking at the junior level but are much harder to get directly out of undergrad. Most people enter PE or hedge funds after a stint in banking.
- Corporate finance — Corporate finance roles at large companies typically pay $60,000 to $85,000 in total comp for entry-level positions — significantly less than banking.
On a per-hour basis, the picture is less flattering for banking. If you are working 80-100 hours per week as an analyst, your effective hourly rate is much lower than the headline numbers suggest. But the total dollar amount, combined with the training and exit opportunities, is what continues to draw people to the profession.
Does Compensation Vary by Group?
Within a given bank, base salaries are generally standardized by class year — all first-year analysts at Goldman Sachs earn the same base, regardless of whether they are in technology, healthcare, or restructuring. Bonuses, however, can vary by group based on that group’s revenue performance.
Groups that are particularly busy or profitable in a given year may see larger bonus pools. Restructuring groups, for example, tend to do well during economic downturns when other groups may see reduced deal activity. Conversely, M&A advisory groups may have larger bonus pools during boom times with high deal volume.
The Bigger Picture: Why Compensation Is Not Everything
While the money in investment banking is excellent, the most valuable aspect of the analyst experience may not be the paycheck itself. The training, deal experience, and network you build as an analyst open doors to highly lucrative careers in private equity, hedge funds, corporate development, and other areas. Many former banking analysts go on to earn significantly more in these roles — and they credit the analyst program with giving them the foundation to get there.
When evaluating offers, think beyond just the first-year pay package. Consider the quality of deal experience, the reputation of the bank, the exit opportunities, and the people you will be working with. Those factors compound over the course of your career in ways that a few thousand dollars in bonus differential do not.
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If you are serious about breaking into investment banking, the best thing you can do is work with someone who has been through the recruiting process and knows exactly what top banks are looking for. At Wall Street Mastermind, we have helped over 2,500 students land offers at every bulge bracket and elite boutique bank on Wall Street. Book a free strategy call to learn how we can help you prepare for your interviews and maximize your chances of landing the offer.
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