Investment banking is known for its high salaries, especially at the associate level. As a key member of banking deal teams, associates take on significant responsibilities in financial modeling, valuation, due diligence and client presentations. Understanding associate salaries and bonuses provides helpful insight into investment banking compensation.
Base salaries for associates average around $150K, with total compensation nearing $300K
According to publicly available salary data, a first-year associate at Bank of America in investment banking can expect to earn a base salary of approximately $150,000. Second year associates see a bump up to around $170,000. At the associate level, base represents only part of total compensation.
Bonuses can exceed 100% of base salaries
In addition to base salaries, investment banking associates receive substantial year-end bonuses. These bonuses often match or even exceed base pay. For example, a second-year associate may receive a $170,000 base combined with a $200,000 bonus for total compensation of $370,000.
Significant future earnings growth potential as an associate
The career trajectory for successful associates includes promotion to vice president level. This role brings increased responsibilities and commensurate pay increases. Total compensation packages expand to $500K+ for vice presidents.
Regional differences in associate pay at Bank of America
Geographic location also plays a role in shaping investment banking associate salaries. Associates in top financial hubs like New York and San Francisco tend to earn at the higher end of the pay scale. Average salaries scale down slightly in other metro areas.
Strong job prospects for new associates
The future looks bright for newly minted MBAs seeking associate roles. Banks value the specialized skill sets that associates bring to deals. With robust deal activity across sectors, demand looks set to remain strong.
At Bank of America and other top banks, investment banking associates earn base salaries averaging around $150,000, with year-end bonuses bringing total compensation up to nearly $300,000. Geographic differences and individual performance cause some variation in associate pay packages.