According to Salary.com, top investment executives in New York City earn an average annual salary of $273,568 plus an additional $100,000 in bonuses. What is more, the annual earnings of the highest paid investment banking professionals regularly exceed more than one million dollars from their jobs.
Why do investment bankers get paid so well? Simply put, there is a lot of money to be earned in the buying and selling of stocks. Investment bankers specialize in securing capital for those who seek it from those who are interested in securing investments. They work for investment firms such as Lehman Brothers or Goldman Sachs, brokering mergers and acquisitions and investment strategies for companies looking for capital. Sometimes they buy stock in a company and sell it to gain a profit.
Investment banking is also very stressful work that requires tremendous stamina. It's not uncommon for investment bankers to work 70 to 80 hours per week in addition to time spent traveling. Much of their time is spent looking for buyers and sellers of stock.
Preparing for a Career in Investment Banking
A career in investment banking usually begins with business school. Most investment bankers have at least a bachelor's degree in finance or a related field. Those who land more competitive investment banking jobs typically have a master's in business administration. Investment banking jobs in firms such as Goldman Sachs and Lehman Brothers are very competitive, often requiring degrees from one of the top tier business schools.If the long hours and pressure of a career in investment banking seem unappealing to you, you can still pursue a variety of finance-related jobs with a degree in business. You can work as a personal financial advisor or a broker, for example, giving advice to clients on retirement accounts or selling stocks to private investors or investment firms.
Whether you pursue a career in investment banking or another area of finance, you'll likely benefit from a bachelor's degree--according to the Bureau of Labor Statistics, two-thirds of workers in the investment industry have a college degree, making it the highest educated industry in the U.S.
Sources
The Bureau of Labor Statistics
Salary.com
