Average compensation for investment bankers continues to rise, with six-figure salaries now the norm across all levels. How much do investment bankers make in 2025? The answer varies widely by role, bank size, and performance, but the latest numbers show the industry still rewards its top talent with lucrative packages.
Table of Contents
What’s New in Pay Trends
This year, pay growth has been driven mostly by higher bonuses rather than base salaries. On average, total compensation has climbed by about 10–15% compared to last year. Boutique investment banks, which compete aggressively for talent, are leading the way with the highest total pay. Meanwhile, large global banks still dominate in offering steady progression, though their bonuses are more conservative.
Key Points Summary (Fast-Reader Style)
💰 Analysts: $160K–$210K total
📈 Associates: $275K–$475K total
🏦 Vice Presidents: $500K–$700K total
📊 Directors/SVPs: $600K–$800K total
⭐ Managing Directors: $800K–$1.6M+ total
🔥 Star hires: $4M–$9M guaranteed deals
Compensation by Career Stage
Early Career (Analyst, Associate)
At the entry level, analysts typically earn between $160,000 and $210,000 when combining salary and bonus. Associates progress more quickly, taking home $275,000 to $475,000, depending on performance and the strength of the bank they join. These roles demand long hours, but they also set the foundation for higher earnings later in the career ladder.
Mid Career (Vice President, Director/SVP)
Vice Presidents usually earn $500,000 to $700,000, reflecting both their leadership responsibilities and their role in generating client revenue. Directors and Senior Vice Presidents climb higher, averaging $600,000 to $800,000 per year. At this stage, bonuses can outweigh base pay, especially for those involved in successful dealmaking.
Senior Level (Managing Director & Beyond)
Managing Directors often receive $800,000 to $1.6 million+ annually, depending heavily on their ability to close large transactions. While not every MD reaches the upper range, top performers can significantly exceed it. In some cases, star dealmakers recruited from competitors have received guaranteed packages between $4 million and $9 million per year, underscoring just how valuable proven rainmakers are in the industry.
Factors Influencing Pay
Several key factors explain why compensation has shifted in 2025:
- Revenue Growth: While deal flow has been uneven, banks increased bonus pools to retain talent.
- Competition Among Firms: Boutique banks offered higher pay to attract bankers from larger institutions.
- Performance-Based Incentives: Bonuses tied to revenue and deal success became the biggest driver of earnings.
- Market Uncertainty: Some banks slowed base salary growth, relying instead on variable pay.
Typical Salary Ranges by Bank Type
- Boutique Investment Banks: Highest pay overall, averaging nearly half a million dollars for mid-career roles.
- Bulge Bracket Firms (large global banks): Strong progression but slightly smaller bonuses.
- Regional or Middle-Market Banks: More modest ranges, with total pay closer to the lower end of the spectrum.
Why the Numbers Matter
Understanding how much do investment bankers make is important for students considering finance careers, professionals weighing job moves, and even businesses trying to compete for advisory services. The numbers highlight both the reward and the pressure—bankers earn high compensation, but their hours, stress levels, and performance targets are equally demanding.
For newcomers, the six-figure starting salaries can be life-changing. For veterans, multi-million-dollar guarantees serve as both a reward for past deals and a challenge to deliver even more. The wide range in pay across levels also shows why so many professionals aim for the coveted Managing Director role, despite the steep climb to get there.
The bottom line: compensation in 2025 confirms that investment banking remains one of the most financially rewarding careers. While average pay across the industry is strong, those who reach the upper tiers still command extraordinary packages.
So, how much do investment bankers make? Anywhere from $160,000 as a new analyst to over $9 million for elite dealmakers. It’s a world where effort and opportunity collide—leaving no doubt why so many still chase this high-stakes career.
If you’ve got thoughts on whether the rewards outweigh the challenges, share them—we’d love to hear your perspective.
