Posts Tagged ‘investment banking’

At LBS, I went to numerous presentations for Bulge Bracket Investment Banking and almost everybody warns the prospective I-Bankers of the ridiculous hours they work as Analysts/Associates – 90…100…110! This made me seriously wonder the accuracy of a valuation of an Associate working on a multi-billion dollar merger who has not slept in two days and has the pressure of a daunting MD breathing down his neck to finish the work. Granted the pay with bonus is pretty good but is there a way to balance decent pay (I know this term is relative for the banking industry) with workload that will let you sleep at least 6 hours every day? Working these many hours for couple of years will surely burn many people out!

Let’s say a 1st year Associate makes a base salary of 65k gbp with a 100% bonus (which makes total salary package of 130k) and works 100 hours a week. If 4 associates are assigned to do the same work as 3 associates, they would be making 65k with a 50% bonus (package of about 97.5K) and working 75 hours a week. This workload is very manageable (similar to what Tier 1 consultants work) and still gives them a decent salary. To boot, the Associate will not be in constant stress so will be less likely to make mistakes and potentially will have time left to do other “non work” related activities.

Problem solved?

Read the rest of this entry »