Breaking into investment banking is one of the most competitive career paths in finance, and understanding investment banking entry level analyst salaries is crucial for students planning their future. First-year analysts in this field can expect substantial compensation that varies significantly based on firm type, geographic location, and market conditions. Salaries have increased notably in recent years as top firms compete for the best talent, making this career path financially attractive despite its demanding nature.
Understanding Investment Banking Entry Level Analyst Salaries by Firm Type
Investment banking entry level analyst salaries differ dramatically depending on whether you join a bulge bracket bank, middle market firm, or boutique institution. At bulge bracket banks like Goldman Sachs, JPMorgan Chase, and Morgan Stanley, first-year analysts now command base salaries between $100,000 and $120,000, with some firms reaching $110,000 as a standard starting point. These prestigious institutions also offer signing bonuses ranging from $10,000 to $15,000 and year-end bonuses that typically amount to 50-100% of base salary. When you calculate total compensation, investment banking entry level analyst salaries at bulge bracket firms generally fall between $170,000 and $220,000 for the first year.
Middle market banks present a slightly different compensation structure for investment banking entry level analyst salaries. These firms, which include large regional and mid-tier national institutions, offer base salaries in the $100,000-$135,000 range. However, their bonuses tend to be more conservative, typically representing 20-50% of base salary rather than the higher percentages seen at bulge brackets. Signing bonuses at middle market firms are also more modest, often just a few thousand dollars. This results in total first-year compensation hovering around $150,000-$180,000, making investment banking entry level analyst salaries at these firms competitive but somewhat below their larger counterparts.
Elite and Regional Boutique Salaries
The boutique investment banking sector splits into two distinct categories that significantly affect investment banking entry level analyst salaries. Elite boutique firms such as Evercore, Lazard, and PJT Partners actually compete aggressively with bulge brackets and often exceed them in total compensation. These specialized firms offer base salaries ranging from $110,000 to $150,000 and provide substantial year-end bonuses of 30-75% of base salary, with top performers sometimes exceeding 100%. This compensation structure means investment banking salaries at elite boutiques routinely reach $200,000-$270,000 for exceptional analysts.
Regional boutiques represent the other end of the spectrum for investment banking salaries. These smaller independent firms typically start analysts at base salaries between $80,000 and $110,000, with year-end bonuses around 30-50% of base. While the total first-year compensation of approximately $130,000-$170,000 is lower than other categories, these positions can offer valuable experience and better work-life balance. Students evaluating salaries should consider that regional boutiques may provide excellent training and mentorship despite lower initial compensation.
Geographic Variations in Investment Banking Entry Level Analyst Salaries
Location plays a critical role in determining investment banking salaries across the United States. New York City remains the epicenter of investment banking compensation, with first-year analysts earning base salaries of approximately $115,000-$120,000 plus signing bonuses around $10,000. Year-end bonuses in NYC typically represent 50-70% of base salary, bringing total compensation to $180,000-$210,000. These investment banking entry level analyst salaries reflect both the high cost of living in Manhattan and the concentration of major financial institutions.
West Coast financial centers like San Francisco and Los Angeles offer investment banking entry level analyst salaries that are only modestly below New York levels—approximately 10-20% lower. This translates to base salaries around $100,000-$110,000 with bonuses of $50,000-$60,000, resulting in total compensation near $160,000-$180,000. The Midwest, particularly Chicago, maintains comparable compensation structures with investment banking salaries featuring base pay around $100,000-$110,000 and total compensation in the $150,000-$170,000 range.
Southern Market Salaries
The South, particularly Texas markets like Houston and Dallas, typically shows slightly lower investment banking salaries compared to coastal cities. Base salaries in these markets generally range from $95,000 to $105,000, with year-end bonuses representing approximately 40-50% of base compensation. This results in total first-year compensation on the order of $140,000-$160,000. While these investment banking salaries are lower than NYC or San Francisco, they often provide better purchasing power when adjusted for the significantly lower cost of living in Southern cities.
Understanding these regional variations in investment banking salaries helps students make informed decisions about where to target their job search. The differences aren’t just about absolute dollars—they reflect local market dynamics, cost of living considerations, and the competitive landscape for talent. Salaries in smaller markets may offer a better quality of life despite lower nominal figures, while major financial centers provide higher compensation alongside greater career advancement opportunities.
The Complete Picture of Investment Banking Entry Level Analyst Salaries
When evaluating salaries, it’s essential to look beyond just base compensation. The total package includes base salary, signing bonuses, year-end performance bonuses, and often additional benefits like housing stipends, relocation assistance, and comprehensive health coverage. Investment banking salaries represent just the beginning of a potentially lucrative career trajectory, as second and third-year analysts typically see substantial increases in both base pay and bonus percentages.
The upward trend in salaries over recent years reflects intense competition for top talent from business schools and undergraduate programs. Major banks have repeatedly raised compensation to retain analysts who might otherwise leave for private equity, hedge funds, or technology companies. This means students entering the field now can expect investment banking salaries that are significantly higher than what analysts earned just five years ago, though the demanding nature of the work—including 80-100 hour weeks—remains unchanged.
Your Path to Competitive Salaries
Securing one of these attractive investment banking entry level analyst salary packages requires exceptional preparation, networking, and technical skills. Students must master financial modeling, valuation techniques, accounting fundamentals, and develop the ability to work under intense pressure. The interview process is notoriously rigorous, testing both technical knowledge and cultural fit. Those who successfully navigate this process and land positions can expect salaries that place them among the highest-earning recent graduates in any industry.
Join the free InfoGate Financial Investment Bank Academy course today to get your foot in the door. It offers hands-on training and professional insight to help you stand out in interviews and internships. The skills and knowledge you’ll gain from this comprehensive program will position you to compete for the most attractive investment banking entry level analyst salaries at top firms. Don’t leave your future to chance—invest in your education now and take the first step toward a rewarding career in investment banking where you can command the compensation you deserve.