The Salary for an Entry Level Investment Banker

Bachelor's vs. Master's

• According to the U.S. Bureau of Labor Statistics webpage on the securities, commodities and investment industry, your entry-level earnings depend on your level of education. While some investment bankers get started with bachelor's degrees in finance or related disciplines, others earn their MBAs first. While bachelor's degree holders start out as analysts, MBAs work a step higher on the career ladder as associates, and may lead teams of professionals. According to the BLS, the lowest earning 10 percent of investment bankers earned $31,330 in 2010, which offers a reasonable starting salary estimate for investment bankers with bachelor's degrees. MBAs should expect a starting wage closer to the $70,190 median.
  
  

More Details

• Although a starting salary of $30,000 may sound low, investment bankers who prove themselves through performance have the opportunity to earn high pay after a few years in the field. The average annual wage for investment bankers was $95,130 in 2010, so professionals at higher levels must make much more than $30,000 to produce such a statistic. Those in the 75th percentile in terms of earnings made $124,450 per year, while the highest earners took home at least $166,400 annually.
  
  

Regional Differences

• Your starting salary may be higher if you work where investment bankers are particularly well compensated. Bankers in Connecticut, New York and the District of Columbia all earn higher-than-average salaries. In 2010, Connecticut-based professionals earned $157,640 per year on average. New York followed in second place, with investment bankers in that state making $129,620. In third place, District of Columbia investment bankers took home $111,730 annually. Other states paying six figures included Maine and Arkansas, where investment banker salaries were just under $110,000.
  
  

Career Advancement

• Beyond the analyst and associate levels, investment bankers become vice presidents, then directors or executive directors, and finally, managing directors. According to the bureau, many professionals jump to different firms after hitting the vice president level to compete for positions further up the investment banking hierarchy. Analysts and associates have to put in long hours to get considered for promotion, including evenings and weekends, although there are some job perks. For example, working with high-profile clients means dinners and drinks at high-end restaurants and tickets to exclusive events.