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How Much Do Wall Street Traders Really Make?
Ever wondered if the suits in Wall Street really live extravagant lifestyles or make six-figure salaries as movies suggest? Here’s an insider look on the average salaries of financial market players based on their position and tenure.
The Wall Street Oasis, which is an online community of financial professionals, came up with a survey on how much money these folks are making as proprietary traders, portfolio managers, analysts, and interns. Their report was divided into sectors such as investment banking, hedge funds, private equity, and venture capital firms.
The report also noted that pay scales were generally higher in New York compared to smaller cities and some of the results may be skewed. WSO surveyed 140,000 members and 41% claimed to be working In Manhattan while most of the others were from London, Singapore, or Hong Kong.
Investment Banking
Under investment banking, which comprises more popularly known financial companies such as Goldman Sachs, JP Morgan, or Bank of America, a summer intern or associate can earn an average of $71,300 a year while a first year analyst can make an average of $85,300 per year. Third year analysts can earn roughly $111,400 annually while third year associates can make an average of $149,000 per year.
Vice presidents see a huge bump up in their pay to an average of $255,700 per year and managing directors earn an average of $273,400 annually. Sorting by job description reveals that interns can make the most in equity research at an average of $90,700 while third year associates can earn the largest under M&A at an average of $260,000.
Hedge Funds
Pay scales in hedge funds are generally higher, although WSO noted that this particular segment had only 200 respondents compared to investment banking’s 2,300 responses. Summer interns make an average of $58,000 with roughly $3,100 in bonuses each year. First year analysts can earn an average of $67,000 annually with around $21,000 in bonuses, possibly reaching an average of $82,100 plus $21,100 in bonuses by the time they turn into senior analysts.
First year associates average at $71,500 annually plus around $33,000 in bonuses while senior associates reach around $99,200 annually plus $36,200 in bonuses. Vice presidents enjoy an average salary of $140,000 with $100,700 in bonuses while principals make an average of $145,000 plus even larger bonuses of $157,500.
Private equity and VC Firms
Private equity and venture capital firms typically invest in startups or buy out troubled companies. These firms pay an average of $37,800 to interns and around $68,000 to first year analysts. First year associates can earn as much as $86,500 on average while senior associates can make an average of $116,700 plus $80,200 in bonuses. Top-level management can make an average of $150,400 for vice presidents and $225,000 for principals.
Of course this is still far behind hotshot CEOs or company founders that take home huge fat paychecks of no less than a few million dollars each year.
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