Jared Chung
What is the typical compensation range for a first-year investment banking analyst?
Please tell us what the common compensation range is, what the components of comp are, and how a student would decide if they're getting a reasonably attractive offer.
Some common parameters that might be helpful: assume that the range is for a job straight from college based in New York city. If you have perspectives on other locations, please share that with us as well. #finance #investment-banking #compensation
5 answers
Nils Holum
Nils’s Answer
First year investment banking analysts at bulge bracket banks receive a salary of $70K. Bonuses have fluctuated dramatically over time, but are expected to be around $60K for FY2011.
What the bulge bracket is in case someone has not heard of the term before: http://en.wikipedia.org/wiki/Bulge_bracket
Conor Myhrvold
Thomas Halsted
Thomas’s Answer
This is great feedback Thomas! I'd say anywhere between 95k-140k but can also depend on the annual bonus :)
David Forsyth
Jared Chung
Jared’s Answer
The answer has changed over time, as profits in the financial services industry have fluctuated. What is clear is that if you are working in New York for a major investment bank, an analyst straight from college is being offered anywhere from $100-$130k before bonus. Bonuses are very hard to predict because they are usually based on market conditions, but can easily add several tens of thousands of dollars on top of that base range.
Your salary at a large bank will vary 70-95k plus 30-100k bonus for the first three years. At a smaller bank base could be lower and bonus more variable but either way the earning potential is high is you perform well. What should be noted is that you could work 90-120 hours a week so per hour your salary is not high. If you are in nyc you pay state and city income tax at a high rate further depressing your real earnings, to say nothing of the height rent, food, and entertainment costs.
Getting into investment banking for the money as an analyst is an unwise move. If you want to stick it out and become a senior banker or move to private equity you might see some return on the substantial time investment you make as a junior banker.
David Zazula
Franny Buzimkich
Franny’s Answer
Hope you are doing well.
For a first-year investment banking analyst (Analyst 1) in the U.S., a typical compensation package in 2026 is often composed of:
Base salary: approximately $100,000–$125,000
Year-end bonus: often $75,000–$140,000+, depending on individual performance, group performance, and firm results
Total compensation ("all-in"): commonly $170,000–$250,000+ at major firms, with the highest-paying elite boutiques sometimes exceeding that range for top performers.
Typical Ranges by Firm Type
Firm Type Typical First-Year Total CompensationBulge Bracket (e.g., Goldman Sachs, JPMorgan, Morgan Stanley) ~$170,000–$265,000
Elite Boutique (e.g., Evercore, Centerview, PJT, Moelis) ~$180,000–$290,000+ for strong performers
Middle-Market Firms ~$135,000–$220,000
What Students Often Miss
Investment banking is one of the highest-paying jobs available immediately after college, but the compensation comes with:
Very long hours (often 70–100+ hours per week)
High-pressure deadlines
Significant analytical and financial modeling work
For someone exploring careers in medicine, biochemistry, and finance, investment banking represents a very different path. It generally requires:
Strong quantitative and analytical skills
Excel and financial modeling expertise
Networking and internships during college
Typically a degree in finance, economics, business, math, engineering, or another analytical field
As a rough comparison:
First-year investment banking analyst: ~$170K–$250K+ total compensation.
Medical student: typically earns no salary while in medical school.
Medical resident (after medical school): often earns a fraction of investment banking analyst compensation initially, though physician earnings can become much higher later in a career.
If you're comparing medicine, biochemistry-related careers, and finance, investment banking is usually the highest-paying option immediately after college, while medicine can have a higher long-term income potential after many additional years of training.
Philip Tolbert
Philip’s Answer
You might want to check https://www.glassdoor.com/Salaries/index.htm as well.