Introduction
If you’re curious about the investment banking analyst salary, you’re not alone. This topic attracts finance students, job seekers, and even professionals considering a career change. The role of an analyst is demanding but also rewarding, with strong base pay and impressive bonuses. In this article, we’ll break down what analysts really earn in 2025, how compensation has evolved, and what factors shape pay.
We’ll also look at regional differences, firm types, lifestyle trade-offs, and long-term career value. By the end, you’ll have a clear, well-rounded view of analyst salaries and how they fit into the bigger picture of investment banking.
What Does an Investment Banking Analyst Do?
Before diving into numbers, it helps to know what the job entails. Analysts are usually entry-level hires at investment banks. They handle financial modeling, pitch books, research, and long hours of support for senior bankers.
While the job is intense, the skills gained—valuation, market knowledge, and deal execution—are highly valuable. This high demand for skills explains why the investment banking analyst salary is so competitive.
Base Salary Breakdown for 2025
In 2025, base pay for analysts continues to rise. Inflation, market competition, and a talent shortage have all pushed salaries upward.
- First-Year Analyst: $120,000 – $140,000
- Second-Year Analyst: $140,000 – $160,000
- Third-Year Analyst: $160,000 – $180,000
These numbers represent U.S. bulge bracket banks. Smaller firms may pay slightly less, while elite boutiques may pay slightly more.
Bonus Structure and Total Compensation
Base salaries are only part of the story. Analysts often earn bonuses tied to performance, firm profits, and deal activity.
- First-Year Bonus: $50,000 – $70,000
- Second-Year Bonus: $70,000 – $90,000
- Third-Year Bonus: $90,000 – $110,000
When combined with base salaries, total compensation can range from $170,000 to over $280,000. This makes the analyst role one of the highest-paying entry-level jobs.
Factors Influencing Analyst Pay
Several elements impact compensation.
- Firm Type
- Bulge Brackets (e.g., Goldman Sachs, JPMorgan): Large global deals, stable but competitive pay.
- Elite Boutiques (e.g., Evercore, Centerview): Smaller teams, higher pay, often better bonuses.
- Middle Market Firms: Slightly lower salaries, but still attractive.
- Performance
High-performing analysts often see better bonuses. - Economic Conditions
Market slowdowns can lower bonuses, while hot M&A activity drives them up.
Regional Differences in Investment Banking Analyst Salary
Compensation varies by geography.
- United States (New York, San Francisco): Highest pay, with total packages exceeding $250,000.
- United Kingdom (London): Base salaries around £60,000–£80,000, with bonuses that can double pay.
- Asia (Hong Kong, Singapore): Competitive, though slightly below U.S. levels, often balanced by lower taxes.
Cost of living also affects take-home pay. For example, London and New York salaries stretch less than those in smaller financial hubs.
Lifestyle Considerations
Salary alone doesn’t tell the whole story. Analysts often work 70–90 hours per week, especially during live deals. The trade-off is clear: high pay but demanding schedules.
Some banks have introduced “protected weekends” and hybrid work, but the culture still leans toward long hours. Analysts need strong resilience to succeed.
Career Progression and Pay Growth
The analyst role is usually a two- to three-year program. Afterward, analysts either move to:
- Associate Role: With MBAs or promotions, associates earn $200,000+ base plus bonuses.
- Private Equity or Hedge Funds: Many analysts exit to buy-side roles, often boosting their pay.
- Corporate Finance or Startups: Some transition for better lifestyle balance.
The early years may be grueling, but the long-term payoff is significant.
Trends Shaping Analyst Compensation in 2025
Several trends are shaping pay this year:
- Inflation Adjustments: Banks have raised pay to keep up with rising living costs.
- Competition for Talent: Tech and consulting firms attract top students, forcing banks to stay competitive.
- Deal Activity Slowdowns: While bonuses may dip during slower M&A cycles, base salaries remain strong.
- Focus on Retention: Banks use pay raises and benefits to reduce analyst burnout and turnover.
Is the Investment Banking Analyst Salary Worth It?
The big question for many is whether the compensation justifies the lifestyle. For some, the prestige, pay, and exit opportunities make it worthwhile. For others, the long hours and high stress outweigh the money.
If you aim for private equity, hedge funds, or senior banking roles, the analyst experience can be a powerful stepping stone. If lifestyle matters more, alternatives like consulting or corporate finance may offer better balance.
Tips for Aspiring Analysts
- Build Technical Skills early (Excel, financial modeling, valuation).
- Network Aggressively—connections often matter as much as grades.
- Prepare for Interviews with case studies, technicals, and behavioral questions.
- Stay Resilient—mentorship and time management help manage stress.
Conclusion
The investment banking analyst salary in 2025 remains one of the most attractive in the job market. With base pay rising above $120,000 and total compensation exceeding $250,000 at top firms, analysts are well-compensated for their demanding work.
While the hours are long, the skills, pay, and career progression make the analyst role a compelling option for ambitious graduates. For those willing to put in the effort, the financial and professional rewards can be life-changing.
