“Those who say don’t know and those who know don’t say.” – Micheal Lewis
The above quote crisply summarises why MBA graduates covet a career in Investment banking. Between 2018 and 2023, the investment banking sector seems to grow at a 1.2% CAGR. And In 2023, it may be worth $78,008.7 million !!!
And, The reason for such huge numbers is this profile, which has a very important role to play in businesses, including but not limited to advising firms on mergers and acquisitions and fundraising activities. In other words, an investment banker is a kind of broker responsible for facilitating such transactions, along with connecting investors with companies.
And today we bring light on one such (if, not the most) prominent employer of investment bankers in the world- Goldman Sachs: An American multinational investment bank and financial services company, which was Founded in 1869. GS is the second largest investment bank in the world by revenue and is ranked 57th on the Fortune 500 list of the largest United States corporations by total revenue. The firm offers banking and financial management services to corporations, governments, banks, and people. It is considered a systemically important financial institution by the Financial Stability Board.
Correspondingly; Power, Prestige, and Dominance- An Investment banking job in Such organisations begets all this and more.! The employees of this firm get the direct chance to work at the cutting edge of the industry and are paid handsomely to do so… It pays huge numbers to not only the top positioners but also pays well even at the bottom of the pyramid, with summer interns making 50% more than the median household income in India.
But the question that still arises is - How much exactly are Goldman people paid?
Hence, without any further wait, let’s dive in directly to look into the elaborated salary structure in GS.
Goldman Sachs Salary Offered - Across Departments
Employees at Goldman Sachs earn an average of ₹24.1lakhs, mostly ranging from ₹19.0lakhs to ₹51.7lakhs, depending on the department or organizational function that they work in. Whereas, The median salary is approximately ₹21.0lakhs per year. Based on our analysis, the Highest Paying Department At Goldman Sachs is corporate management, with yearly earnings averaging INR 33,66,183 LPA.
The research & development organizational function also pays relatively high compared to other departments, where employees earn INR 26,22,154 LPA. Departments that don't pay as well at Goldman Sachs include the administrative and finance organizational functions, with employees earning INR 15,25,377 and INR 19,37,861 respectively.
Get a chance to join a global business immersion in Singapore, learn from top industry experts & work on 2 live industry projects!
Check Out AltUni's Certificate Program In Investment Banking In Association With Credence Consultants, InvestMitra, & LoEstro Advisors!
Goldman Sachs Salary Offered - Across Designations and Positions
Not everyone who works at an investment bank is an investment banker. Within an investment bank, there is a clear line between the Corporate Management Division and other areas of the bank such as Equity Research, Sales and trading, Commercial banking, Asset management, Retail banking, and other areas.
The Corporate Management Department steers the direction of Goldman Sachs’s operations. It has responsibility for working with corporations, institutions, and governments to carry out capital raising (underwriting in equity, debt, and hybrid markets) as well as for executing mergers and acquisitions and various types of advisory mandates.
The typical structural hierarchy within the Corporate Management Department at Goldman Sachs Bank is as follows:
IB Analyst / Business Analyst
The job of Investment Banking Analyst is provided to those who have recently completed their Grad / Post Grad degree. The primary responsibilities of these analysts are to perform research and analysis tasks for various investment banking projects. A fresher with this designation may expect to make around 14-16 lacs per annum on average, while more experienced applicants can expect to earn around 19-22 lacs.
Investment Banking Associate
This is a step up from working as an Analyst. Candidates who recently complete their MBA or CFA and holds 3-5 years of experience are considered for Associate roles. They’re also employed to bridge the gap between senior and novice analysts. The responsibilities include getting the work done from Analysts, finalising their work and providing a helping hand to senior bankers (VP and Above). This salary for Associates ranges between Rs 22-27 lacs on average.
Vice President
The role of a Vice President is to finalize Pitchbooks, and IMs created by Analysts and Associates and use them in various client meetings. On one hand, VP coordinates with associates to finalize the pitch, and on the other hand, keeps a connection with clients to understand their requirements. This way they fulfil clients’ requirements and provide highly customized solutions to their business challenges. The salary ranges between Rs 35-50 lacs on average.
Managing Director
The position of MD is of the highest rank in an Investment Banking role. Not all Investment Banking candidates reach up to this designation. It requires a great deal of skill and experience to reach this position. MDs are directly responsible for the company’s profitability, keep a track of markets, and how deals are happening. They use their experience to originate new ideas, generate more deals and get them executed. They may be involved in deal execution sometimes.
The Highest paying job at Goldman Sachs is of MD; which is a salary of 1.5-2 cr p.a or more depending upon the type of experience.
About AltUni's Certificate Program In Investment Banking:
In this extensive & well-rounded program, you'll master the advanced concepts, tools & techniques used by successful investment banking professionals. You'll also have the chance to opt for the AltUni International Business Immersion in Singapore - interact with professionals from around the world, meet CXOs, & get to know how business is done abroad. Learn from industry experts, & gain an in-depth understanding of the domain via 2 Live Projects, Assignments, Case Studies & more!
Goldman Sachs Salary Offered - Across Location
The role of an Investment Banker is essential to run the money flow in Finance, Banking, or other sectors that is related to Investment. However, as you know responsibilities of an Investment Banker walk on their shoulders. The salary package of an Investment Banker has also differed from place to location within and abroad.
Here is a summary of pay in India, the USA, the UK, and Singapore to give you an overview of how much they can differ across the world. Bonuses are discretionary and largely depend on the bank, deal flow and performance, and individual performance, so we will compare total salaries here. All figures represent averages in USD.
Check out below what an average salary is being offered to Investment bankers location-wise:
Cost of living can vary dramatically depending on the part of the country you're in. This is mainly because the cost of living is different for every city. Some cities are more expensive to live in than others. On the other hand, some cities have a higher demand for investment bankers, which also causes the average pay to vary significantly.
Our data shows that Goldman Sachs employees in New York, NY get paid the most. Being where the grand Wall Street and its institutions are located, the overwhelming deal flow at New York investment banks warrants higher salaries than in other regions in the world.
However, MDs in London earn a significantly higher base salary. Bonuses are a different discussion altogether as they greatly vary depending on the year, firm, individual performance, etc.
Getting into the Singapore market is no easy feat, especially coming from another country without experience in Singapore. But it's not impossible. Salaries in Singapore are decently good, especially for those starting their careers with bulge bracket banks. So the result is quite satisfying even though the market is tough to enter. Along with a great basic salary, you also get a hefty bonus.
The pay gap between NY and Singapore is narrow at the bottom levels but significantly widens going up the ladder.
The most beneficial city for India’s investment bankers is Mumbai, as it offers an average of 84% more than the national average pay. Other cities that offer above-average income to investment bankers are Pune (4% higher than the average) and New Delhi (4% higher than the average).
GS employees with an MBA or PhD start with a base salary of ~$30,000 USD. Compare this to the starting base salary in the U.S. of $170,000, which gives out a big difference. Bonuses for Goldman Sachs employees in India are also generally much lower than in the U.S., Uk and Singapore.
These differences are reflective of regional trends within the industry – purchasing power is much fiercer in the U.S., hence the higher compensation packages. However, even in India, the GS salary is near the top of the market for Professional Services work.
The discrepancy is also balanced by the difference in cost of living, which is 68% lower in India than in the U.S.
Recommended For You: AltUni's Certificate Program In Investment Banking. Check Details Here!
Final Thoughts
To sum up, Despite the growth of ‘cool’ tech and clean energy jobs, a career in investment banking arguably remains the most prestigious of all. It is clearly established that a career in investment banking from top IB firms like Goldman Sachs is surely very rewarding. They are paid for their services because banks are involved in high-value transactions with high fees. It is expected that these individuals be hardworking, intelligent, and talented for such an important job, and as a result, they are well paid.
| So, Is a career in investment Banking from top firms like Goldman Sachs your calling?
Being an investment banker is surely a promising career in the present times. But, One needs to work hard for the same and acquire skills and knowledge that are a must for entering this competitive industry. This field is typically only chosen by individuals with high energy, and excellent analytical and communication skills. And If this is your calling, or if you are someone who has decided to make a career as an investment banker, It is important to plan your financial journey in such a manner that you can take on the role of analyst and grow further from there. To know more about how AltUni can help you kickstart your investment banking journey, check out AltUni's Certificate Program In Investment Banking!
|
Read Next: Which Top Banks Do IIM ABC, ISB, XLRI, FMS Alumni End Up At?
Chat
Comments