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This text initially appeared on Enterprise Insider.
Psst! How a lot was your bonus?
On Wall Road, your end-of-year paycheck can typically point out your standing at work. But, realizing the place your bonus pay ranks in comparison with friends shouldn’t be so easy.
In an effort to shed some gentle on Wall Road pay developments, recruiting agency Prospect Rock Companions surveyed greater than 900 funding bankers about their 2024 salaries and bonuses.
The survey was performed between December 1, 2024, and February 28, 2025, utilizing Prospect Rock’s banking business contacts. It is the third yr Meridith Dennes, the agency’s managing companion, has performed it.
“It is at all times been so cryptic,” Dennes advised Enterprise Insider in regards to the Wall Road compensation construction. “The entire level of the survey is that compensation is rather more nuanced than what individuals discuss.”
Survey respondents included bankers from all ranks, from analysts as much as vice presidents and managing administrators, and throughout a mess of protection teams, and corporations.
Prospect Rock Companions gave BI permission to publish choose slides from its full survey. The outcomes shared right here recommend that so-called elite boutique banks (suppose Evercore, Lazard, and Centerview) noticed whole compensation will increase of between 11% to 68% throughout all roles. Whole pay for associates at elite boutiques rose a median of 31% for first-year associates and 33% for second-year associates. Managing director compensation at elite boutiques jumped from about $1 million in 2023 to over $1.7 million in 2024, a rise of 68%.
These bonus insights come as Wall Road waits with bated breath to see whether or not the M&A rebound many business consultants predicted for 2025 will absolutely materialize or fizzle out.
“There’s a lot uncertainty — geopolitical threat, the impression on the non-public sector of DOGE cuts, tariffs, and the rate of interest setting — which might trigger loads of turmoil out there,” Dennes mentioned.
The funding banking hiring surge that began on the finish of 2024 continues, nevertheless, Dennes mentioned.
“I, as a recruiter, am seeing a rise in job requisitions coming in, but it surely’s a lot tougher to search out expertise than what individuals need,” she mentioned. “Extra firms who have not used recruiters within the final two years are popping out of the woodwork now.”
2024 compensation overview
2024 comp throughout all ranges Prospect Rock Companions through BI
This portion of the survey provides the typical 2024 compensation for survey respondents in any respect funding banking ranges.
Essentially the most junior workers — first-year analysts — averaged a base pay of greater than $110,000. The information additionally suggests that almost all analysts earned a bonus that equaled about 50% of their base pay in 2024.
Greater-level bankers — vice presidents and up — typically earned bonuses equal to or increased than their base pay. The largest good points went to group heads, who’re normally managing administrators and companions. They noticed common bonuses of greater than $1.7 million.
What bulge-brackets are paying associates
Whole common bulge-bracket comp, 2023-2024 Prospect Rock Companions through BI
Bulge-bracket corporations are the biggest banks, which are inclined to deal with the most important offers and, subsequently, have the biggest funding banking groups. These corporations have a tendency to incorporate Goldman Sachs, JPMorgan, Morgan Stanley, and Citigroup.
Associates are the second-most junior rank at an funding financial institution after analysts. This chart reveals that associate-level survey respondents who work at bulge brackets earned between $176,000 and $221,000 in base pay for 2024. They reported increased bonuses in 2024 over 2023.
What middle-market banks are paying associates
Whole common middle-market comp, 2023-2024 Prospect Rock Companions
Center-market bankers are inclined to concentrate on smaller shoppers, typically these with annual income of beneath $1 billion. This cohort included banks like William Blair, Piper Sandler, Oppenheimer, and Baird, Dennes mentioned.
The typical 2024 base pay for affiliate bankers at these corporations was decrease than at bulge brackets — however not by very a lot. The typical 2024 bonus for every place was much more for this cohort than for survey respondents who work at bulge brackets.
What ‘elite boutiques’ are paying associates
Whole common elite boutique comp, 2023-2024 Prospect Rock Companions
Affiliate-level bankers who work at “elite boutiques” take the cake for the best common 2024 base pay and bonus, reporting increased numbers than their friends at bulge brackets and middle-market corporations.
Elite boutiques are thought-about the top-tier boutique banks that may compete with the massive corporations. In 2024, Evercore, Centerview, and Lazard, for instance, snagged prime 10 positions on the league tables for each world and US M&A recommendation, in response to M&A tracker LSEG.
Survey respondents from this group work at corporations like Evercore, Centerview, Lazard, PJT Companions, and Moelis.
Extra particulars on ‘elite boutique’ pay
Prospect Rock Companions
These banks are inclined to focus solely on funding banking versus bigger corporations, which can have shopper banking and asset administration companies. Some boutiques additionally concentrate on offers inside a particular sector, like media, telecom, or healthcare.
Meaning they typically have stronger execution talents, mentioned Dennes, and subsequently increased charge revenue per banker on their leaner groups.
“One of the vital important findings is the clear correlation between elevated compensation in 2024 and recovering deal volumes,” she wrote in an summary part of the survey’s findings. “This restoration seems most pronounced at elite boutiques, the place compensation is straight tied to deal efficiency and income technology.”
Pay by business group in 2023 & 2024
Compensation for level-two banking associates by protection space Prospect Rock Companions
Second-year associates, whose 2024 comp is described on this part of the survey outcomes, are bankers who’ve been within the discipline for anyplace from two to 5 years, relying on whether or not they began in funding banking as an analyst or have been employed out of an MBA program.
The biggest group of respondents on this group described themselves as M&A generalists. The survey says this cohort averaged $187,000 in base pay and about $134,000 in bonuses final yr.
Different well-paid associates on this group labored in enterprise companies, restructuring, and DCM.
Some total comp is down from years in the past
Common whole comp and its modifications Prospect Rock Companions
The report reveals how common comp has modified since 2022. In some circumstances, it wasn’t for the higher, like for vice presidents and managing administrators.
For context, world dealmaking hit greater than $3.16 trillion in 2024, which is up 10% over 2023, however nonetheless decrease than 2022 volumes of $3.45 trillion, in response to offers tracker LSEG.
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