Wall Street Bonuses: See Investment Banker Salaries for 2024

Ever wonder how much those Wall Street folks are really making? Yeah, me too.

Turns out, your bonus can be a pretty big deal. It shows where you stand at work. But comparing your bonus to others? Not always easy.

A company called Prospect Rock Partners did some digging. They asked over 900 investment bankers about their 2024 salaries and bonuses. Think of it as a peek behind the curtain.

The Secret’s Out: Wall Street Pay Trends

Meridith Dennes, the head of Prospect Rock, has been doing this survey for three years. Why? Because Wall Street pay is confusing. She told Business Insider that compensation is more complex than people realize. So true!

The survey included everyone from analysts to managing directors. All sorts of banks, too.

Want to know the juicy details? Here’s what they found:

Elite Boutiques: The Big Winners

These fancy banks (like Evercore, Lazard, and Centerview) saw total pay jump. We’re talking 11% to 68% increases! For everyone! Associates at these firms saw their pay rise by about 30%. Not bad, right?

And managing directors? Hold on to your hats. Their pay went from around $1 million in 2023 to over $1. 7 million in 2024. That’s a 68% increase!

Why the big jump? Well, everyone’s waiting to see if the M&A market will bounce back. There’s a lot of uncertainty out there.

Hiring is Up, But Talent is Scarce

Good news for job seekers! The hiring surge that started in 2024 is still going strong. But finding the right people? That’s tough.

More companies are using recruiters now. They need help finding qualified candidates.

Breaking Down the Numbers: Who Earned What?

Let’s get specific.

• First-year analysts: Averaged over $110,000 in base pay. A bonus equal to about 50% of their salary.
• Vice presidents and up: Bonuses equal to or higher than their base pay.
• Group heads (managing directors and partners): Average bonuses of over $1. 7 million.

Bulge Bracket Banks: How Do They Compare?

Think Goldman Sachs, JPMorgan, Morgan Stanley, and Citigroup. These are the big players.

Associates at these firms earned between $176,000 and $221,000 in base pay in 2024. And their bonuses were higher than in 2023.

Middle-Market Banks: A Different Game

These banks focus on smaller clients. Think companies with under $1 billion in revenue. Examples include William Blair, Piper Sandler, and Oppenheimer.

Associates here earned less in base pay than at bulge brackets. But their bonuses? Sometimes even bigger!

Elite Boutiques: The Payday Kings

Here’s where it gets interesting. Associates at “elite boutiques” made the most. Higher base pay and bigger bonuses than everyone else. Boom!

These firms focus on investment banking. They often specialize in specific sectors. This can lead to higher fee income per banker.

Deals Drive Dollars

Dennes said there’s a clear link between higher pay and recovering deal volumes. Especially at elite boutiques. Their pay is directly tied to how well they perform.

Pay by Industry: Where the Money Is

Second-year associates in M&A made an average of $187,000 in base pay. And about $134,000 in bonuses. Not too shabby.

Other well-paid areas? Business services, restructuring, and DCM.

Overall Compensation: Up or Down?

The report also shows how pay has changed since 2022. Sometimes, it wasn’t for the better. Vice presidents and managing directors saw some dips.

Global dealmaking was up 10% in 2024. But still lower than 2022 levels. Things are getting better, but not quite back to where they were.