Salary of an Investment Banker

Investment bankers sell stocks and bonds to customers.

Investment bankers can hold various titles depending on the licenses they hold and their qualifications. Most investment bankers sell stocks and bonds to bank customers. Additionally, investment bankers may also attract investors to help finance their own bank. Most investment bankers study the financial portfolios of their clients, offering advice on when clients should buy or sell stock. Investment bankers typically earn salaries along with commissions and bonuses.

Average Annual Salary

The average annual salary of an investment banker is contingent upon her title and licensing. For example, security trading investment bankers earn the highest annual salaries at $65,773, according to 2011 Payscale.com data. Security trading associates earn the second highest salaries at $60,820 per year. Additionally, investment bankers who hold banking analyst titles earn annual incomes of $60,777. Investment bankers with financial analyst titles earn salaries of $58,993 per year. And financial advisers earn annual salaries of $46,756. Additionally, StateUniversity.com indicates that the average annual salary for an investment banker is between $45,000 and $80,000 per year. Also, Glassdoor.com lists salaries for 11,201 investment bankers, most of whom earn annual salaries in the $40,000 to $85,000 range.

Years of Experience

An investment banker's salary will usually increase over time. For example, investment bankers with less than one year of experience earn annual salaries of $48,856 per year, according to Payscale.com. Investment bankers with one to four years of experience can expect to earn salaries of $48,138 per year. Additionally, with five to nine years of experience, an investment banker earns an average annual salary of $64,317. And investment bankers who have 20 or more years of experience typically earn salaries around $75,042 per year.

Salary by State

Investment bankers can earn higher salaries in certain states. For example, investment bankers tend to earn the highest annual salaries in New York at $84,301, according to Payscale.com. Investment bankers earn the second highest salaries in New Jersey at $68,588 per year. Additionally, in California, an investment banker can expect to earn an annual salary of $59,695. Investment bankers in Illinois earn average annual salaries of $57,433, and those in Texas earn $50,200 per year. Investment bankers in Florida usually earn average salaries of $49,471 per year.

Salary by City

Investment bankers also earn more in certain cities. Investment bankers earn the highest annual salaries in New York City at $88,085, according to Payscale.com. Investment bankers in Jersey City earn the second highest salaries at $82,001 per year. In San Francisco, investment bankers earn average annual salaries of $72,210,, and those in Chicago earn average salaries of $61,955 per year. Investment bankers in Dallas earn average annual salaries of $59,616, and those in Houston earn $55,224 per year. In St. Louis, the average annual salary of an investment banker is $43,790.

References

• Payscale: Salary for Industry: Investment Banking / Brokerage; 2011
• Bureau of Labor Statistics: Occupational Outlook Handbook, 2010-11 Edition: Securities, Commodities, and Financial Services Sales Agents; 2009
• Glassdoor.com: Investment Banking Salaries; 2011
• StateUniversity.com: Investment Banker Job Description, Career as Investment Banker; 2011