Compare compensation without confusing cash and upside
The figures in this guide are compensation estimates, not a live employer payroll database or a guaranteed offer. Check the original source date, role, location, currency, and pay period before using a range. A base salary in a current posting does not establish the size of a future discretionary bonus.
| Component | What to verify in writing | How to compare it |
|---|---|---|
| Base salary | Annual amount, currency, location and start date | Keep the same year and currency on both sides |
| Bonus | Guaranteed or discretionary; first-year eligibility | Keep guaranteed cash separate from possible awards |
| Sign-on payment | Timing, repayment terms and tax treatment | Do not count it as recurring salary |
| Carry or equity | Vesting, conditions, dilution and realization | Do not add contingent value to annual cash pay |
| Co-investment | Required personal capital, terms and risk | An investment opportunity is not salary |
Use the finance salary comparison for cross-role context and the bank-type comparison for differences in the work. Neither substitutes for the terms of the particular position.
Investment banking remains one of the highest-paying entry-level careers in finance. But compensation varies significantly by bank, group, and performance. Here's what you can actually expect to earn in 2026.
2026 Investment Banking Compensation Overview
Analyst 1 (First Year):
- Base Salary: $110,000
- Bonus: $90,000 - $140,000
- Total Comp: $200,000 - $250,000
Analyst 2 (Second Year):
- Base Salary: $125,000
- Bonus: $110,000 - $165,000
- Total Comp: $235,000 - $290,000
Analyst 3 (Third Year, if applicable):
- Base Salary: $135,000
- Bonus: $125,000 - $185,000
- Total Comp: $260,000 - $320,000
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Bulge Bracket vs. Elite Boutique Pay
Bulge Brackets (Goldman, Morgan Stanley, JP Morgan, etc.): Pay across bulge brackets has largely converged. Base salaries are standardized, and bonuses fall within predictable ranges based on performance and deal flow.
Elite Boutiques (Evercore, Centerview, PJT, Lazard, Moelis): Elite boutiques often pay premiums, particularly in bonus. A top-performing analyst at Evercore or Centerview may earn 10-20% more than peers at bulge brackets.
Middle Market Banks: Compensation is typically 10-20% lower than bulge brackets, but hours can be slightly more manageable, and training may be stronger in some groups.
What Drives Bonus Variation?
Your bonus isn't random. Several factors determine where you fall in the range:
1. Bank Performance Did your bank have a strong year? Deal volume and fee revenue directly impact the bonus pool.
2. Group Performance Hot groups (tech M&A, healthcare, sponsors) often have larger bonus pools than slower groups.
3. Individual Performance Your review scores matter. Top-bucket analysts can earn 30-50% more in bonus than bottom-bucket peers.
4. Market Conditions M&A activity, IPO markets, and overall deal flow affect compensation industry-wide.
Associate Compensation (Post-MBA or Promoted)
Associate 1:
- Base Salary: $175,000
- Bonus: $100,000 - $175,000
- Total Comp: $275,000 - $350,000
Associate 2:
- Base Salary: $200,000
- Bonus: $125,000 - $200,000
- Total Comp: $325,000 - $400,000
Associate 3:
- Base Salary: $225,000
- Bonus: $150,000 - $225,000
- Total Comp: $375,000 - $450,000
Vice President and Beyond
Vice President:
- Base Salary: $250,000 - $300,000
- Bonus: $200,000 - $400,000
- Total Comp: $450,000 - $700,000
Director/Executive Director:
- Base Salary: $300,000 - $350,000
- Bonus: $300,000 - $600,000
- Total Comp: $600,000 - $950,000
Managing Director:
- Base Salary: $400,000 - $600,000
- Bonus: $500,000 - $2,000,000+
- Total Comp: $1,000,000 - $3,000,000+
MD compensation is highly variable and tied to revenue generation. Top producers at major banks can earn $5M+.
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The Hours Reality Check
Before focusing solely on compensation, consider the hours:
Analysts: 80-100 hours/week is common. Some weeks approach 100+.
Associates: 70-90 hours/week typically.
VPs and above: 60-80 hours/week, but more client-facing stress.
Hourly rates, when calculated, often fall well below what you'd expect given total compensation.
How 2026 Compares to Previous Years
Compensation has risen significantly since 2020:
- 2020: Analyst 1 base was $85,000
- 2021: Base increased to $100,000
- 2022-2023: Base hit $110,000 (current level)
- 2024-2026: Bases have held steady; bonus variance reflects market conditions
The 2021-2022 M&A boom drove both base increases and exceptional bonuses. The market has normalized, but compensation remains historically high.
Maximizing Your Compensation
1. Choose Your Bank Wisely Elite boutiques and top bulge brackets consistently pay at or above market.
2. Target Hot Groups Technology, healthcare, and sponsors coverage tend to have more deal flow and larger bonus pools.
3. Perform at a High Level Reviews matter. Being in the top bucket can mean $30-50K more in annual bonus.
4. Exit Strategically PE and hedge fund exits typically come with significant pay bumps. Stay in banking only as long as it serves your long-term goals.
Ready to break into investment banking? Start with our Finance Technical Interview Guide to nail the interviews.
Working on your candidacy? A polished resume is essential. Consider a Professional Resume Review.