My brother has been a banker for Wells Fargo for almost 9 years now. I actually worked as a banker for a year during my undergrad as well. My brother even made it as a branch manager for 3 years and broke all sorts of records. However, he hates his job, has never made that great of money ($120k when he was the branch manager), and is now looking for a new profession.
I hated being a banker as well...HATED IT.
I couldn't be happier that I'm going to be a dentist for sooo many reasons.
University of Michigan, Class of 2015
Your brother is not a banker. Your brother is a branch manager of a retail bank. When people say "banker," they are referring to investment bankers. FYI, here's how it works:
- Analyst: Typical bulge bracket banks and strong boutiques have a 2-year analyst program. Very seldom, they will invite a 2nd year analyst back for a 3rd year, where it is presumed they will be promoted to Associate in year 4 (see more below). First year IB analysts (in NYC) are paid a pretty standard $60k base salary, signing bonus of $10-$20k, and year end bonus is based upon performance, but $50-$70k is about the range. Analysts, specifically, work back breaking hours (100+ hours/week), and the reason they don't last past 2 years is a) they go to get MBAs, b) they go to Private Equity (their bosses help them with connections), or c) they wash out.
- Associate: 95+% of associates are hired from business school as most individuals who want to break into banking weren't doing it before (hence, "breaking in.") In NYC, they are usually hired at $100k base salary, which escalates to $125k upon the new calendar year. Signing bonus is $50k, and usually there's a $10k kicker if you were a summer associate with your firm in the previous year. Overall compensation for 2nd, 3rd, and 4th (those who haven't been promoted to VP yet) associates ranges from about $180k-$400k. Keep in mind, this is typically late 20's. Those who leave at this point leave for either private equity, or some other lucrative alternative which, you guessed it, usually pays more. Many people quit to pursue other things as well, having made strong corporate connections. Associates work less than analysts (think 60-80 hours/week) and have a much greater degree of autonomy.
After associate, the "career bankers" begin to sort themselves out. I know of 2nd year VP's making $750k/year, and some who make less. At the VP level and above it's much less about your ability to crunch the numbers and put together pitchbooks and MUCH more about your ability to maintain contacts and, most importantly, bring in new business to the firm. You need to be a rainmaker to succeed in this industry. Many people choose to go different directions, and that's why banking is so appealing: After you've been a banker for a number of years, employers KNOW that a) you have a motor...your work ethic is NEVER in question, b) you likely have one or many acute areas of industry expertise, which makes your knowledge and skill set very transferable, whether to the corporate world or, in a lot of cases, hedge funds and PE firms. Whether or not you end up in banking long term, one thing is for sure: your odds of having a financially lucrative career and financial security are quite strong. Some people can't handle the stress, some people can't handle the hours, but ask yourself this: If you can give yourself a high probability of financial security simply by busting your butt for a few years in your mid to late-20's, isn't that worth it? You can give your kids everything you want and can provide support for your family and, most importantly, spend time with them. Money doesn't buy happiness, but it does buy freedom.
