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What would be the compensation of a company's global head of commodities finance and capital investments working for UBS be? 7 figure compensation? This guy that I knew from when I was a kid holds that position. He got an MBA from NYU Stern.
Most of the compensation in IB comes from the bonus, which is obviously not what it used to be today. I remember reading a article about someone who was the global head of a trading desk for Merrill, and his base was $350,000, but his bonus was like $13MM.
The investment banking "money" comes from incentives offered to the bankers. The base salary is just ok and competitive with a lot of other professions. However, it is highly based on commission, just like real estate sales people and car sales people.
Most of the compensation in IB comes from the bonus, which is obviously not what it used to be today. I remember reading a article about someone who was the global head of a trading desk for Merrill, and his base was $350,000, but his bonus was like $13MM.
Ok, now imagine, his bonus from three years ago, let's say it was 10 million, just for easy math. Maybe 3 million was in cash , the rest in company stock. He's vesting now. When this guy got paid, he got 7 million in stocks at the price at that moment. Now three years later the stock has tanked, it's worth 20 percent of what it was. Now he's *not* getting 7 million, he's getting, uh, 1.4 million. So he wasn't paid 10 million three years ago, he was paid 4.4 million.
Now I'm not shedding any tears for him, but still it's pretty harsh.
Im a new grad about to start with one of the bigger banks in Manhattan as an analyst. Though it is not investment banking, (I am going to be working in Global Transaction Services) How will this position me for future employment? Will the name of the bank I work for help me at all, or will the fact that it is not IB hurt me? I am one of the rare finance majors who actually does not want to stick with IB but move to other parts of the banking industry, and finance in general. What other jobs are there in banking, or in Finance that still pay well, and have interesting work, that isnt IB. For the record My GPA isnt stellar (Below a 3.3) and I did not graduate from a big name school, But I am still working with people from larger more well known Universities (Harvard, Penn, Duke, Cornell, NYU...ect) with GPA's far better than mine so it is possible!! Im just worried about getting into a decent MBA program in a few years ...I actually have alot of questions, but I will leave it at this for now.
Hey I'm no expert, but once you get your foot in the door the rest is up to you! And sometimes the hardest part is getting your foot in the door, and you've accomplished that, so congrats to you and good luck. You sound smart.
Im a new grad about to start with one of the bigger banks in Manhattan as an analyst. Though it is not investment banking, (I am going to be working in Global Transaction Services) How will this position me for future employment? Will the name of the bank I work for help me at all, or will the fact that it is not IB hurt me? I am one of the rare finance majors who actually does not want to stick with IB but move to other parts of the banking industry, and finance in general. What other jobs are there in banking, or in Finance that still pay well, and have interesting work, that isnt IB. For the record My GPA isnt stellar (Below a 3.3) and I did not graduate from a big name school, But I am still working with people from larger more well known Universities (Harvard, Penn, Duke, Cornell, NYU...ect) with GPA's far better than mine so it is possible!! Im just worried about getting into a decent MBA program in a few years ...I actually have alot of questions, but I will leave it at this for now.
Once you get about a year or so under your belt you will realize that there are other areas you can explore. Especially now, with the way banking is changing, Risk Management is a good area to explore. Other areas of finance exist as well, including credit analysis, corporate banking/lending, equities analyst, fixed income, loan syndications, debt capital markets...so many options...I don't think it will matter which bank you start out with, I started with commercial banking. The financial job market is changing drastically, so it will be important to keep your options open. Also, I would not put so much weight on the MBA...unless your company requires it for advancement.
Im a new grad about to start with one of the bigger banks in Manhattan as an analyst. Though it is not investment banking, (I am going to be working in Global Transaction Services) How will this position me for future employment? Will the name of the bank I work for help me at all, or will the fact that it is not IB hurt me? I am one of the rare finance majors who actually does not want to stick with IB but move to other parts of the banking industry, and finance in general. What other jobs are there in banking, or in Finance that still pay well, and have interesting work, that isnt IB. For the record My GPA isnt stellar (Below a 3.3) and I did not graduate from a big name school, But I am still working with people from larger more well known Universities (Harvard, Penn, Duke, Cornell, NYU...ect) with GPA's far better than mine so it is possible!! Im just worried about getting into a decent MBA program in a few years ...I actually have alot of questions, but I will leave it at this for now.
First, congrats on getting a job in this environment! I cannot tell you how many kids from my alma mater were left jobless (either as a fulltime employee or summer intern). Since you are not completely focused on IB, the above poster's suggestions are pretty good (risk management, liability management, etc.). However, if you want to move to a front-office role (trading/corporate finance/etc.) it may be a little more difficult. Some banks do offer programs in which you can switch divisions but they're such different roles. That being said, if you have an interest, you should research it and network like crazy.
Global transaction services is generally considered mid-office or back-office (i.e. non-revenue generating, support role).
Congrats on the new job. There are plenty of different roles and businesses within banking and finance. The reason why IB generally get the spotlight is because of the compensation that was associated with them in the past. If this is your first job in banking, it might take you a little while (even a year or two) to understand the various businesses and departments that are available and determine what is a fit for you. But once you build the experience, you can work towards getting the role in the business you want. A lot of banks, especially larger ones, promote heavily on internal mobility since it allows them to keep talent and reduce recruiting cost. However, as someone mentioned, how far you move up depends on how hard your willing to work. As a fyi, I worked in global transaction services before in my career so let me know if you have any specific questions.
"Global transaction services is generally considered mid-office or back-office (i.e. non-revenue generating, support role)."
This is not true. Keep in mind that whatever product or business your in, there is always a front office, middle office, and back office component of it. A front office role in GTS would be as a Product Manager, Business Development, Sales, etc.
Congrats on the new job. There are plenty of different roles and businesses within banking and finance. The reason why IB generally get the spotlight is because of the compensation that was associated with them in the past. If this is your first job in banking, it might take you a little while (even a year or two) to understand the various businesses and departments that are available and determine what is a fit for you. But once you build the experience, you can work towards getting the role in the business you want. A lot of banks, especially larger ones, promote heavily on internal mobility since it allows them to keep talent and reduce recruiting cost. However, as someone mentioned, how far you move up depends on how hard your willing to work. As a fyi, I worked in global transaction services before in my career so let me know if you have any specific questions.
"Global transaction services is generally considered mid-office or back-office (i.e. non-revenue generating, support role)."
This is not true. Keep in mind that whatever product or business your in, there is always a front office, middle office, and back office component of it. A front office role in GTS would be as a Product Manager, Business Development, Sales, etc.
While that can mean front office in corporate, it's not the same thing in an investment bank. The structure of a traditional investment bank is very different than how a corporation is structured. GTS can definitely encompass the roles you mentioned above but place those roles in an investment bank, and they are generally mid-office. I'll caveat this with the fact that i'm a former investment banker and I only can attest to the traditional definition of an investment bank.
For example, if you're talking about Sales within an i-bank, most people would think to the Sales of Sales and Trading. The Sales person has their own clients, generates revenues based on commissions and fees but generally has mid-office/back-office people processing paperwork, etc.
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...I actually have alot of questions, but I will leave it at this for now.
Well
