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Investment banking and investment

Graduate salaries in investment banking and investment management

An overview of the salary you can expect to receive as a graduate working in investment banking or investment management.
Graduate jobs in investment banking tend to be the most lucrative of the three main banking divisions.

Investment banks and investment management firms have long been tight-lipped when it comes to advertising graduate salaries. This is usually because they don’t want their competitors to know what they have to offer and trump them for the best and brightest graduates by offering a little more.

Of all the research on employer websites and job adverts that TARGETjobs Finance has carried out, Close Brothers has been the ONLY organisation within these sectors to reveal what it pays graduates (it’s a starting salary of £27,000, if you’re wondering). Most employers simply state: ‘competitive’, and so you’ll find out when you’re hired.

We’ve used another reliable source, the Association of Graduate Recruiters (AGR), to find out what salaries graduates in these areas of work can expect when they join an employer and thereafter. The AGR is a professional body that represents hundreds of organisations that recruit graduates in the UK. It obtains information from its members about all things graduate recruitment related, including salaries.

Graduate salaries in investment banking

Graduate jobs in investment banking tend to be the most lucrative of the three main banking divisions (investment, retail and corporate), with average graduate salaries of £45,000. The latest AGR Graduate Recruitment Survey of its members, which include the largest investment banks, revealed that they expected to pay an average graduate starting salary of £43,500 in 2013 to 2014. And some would say these figures are conservative.

Potential earnings in investment banking

Pay rises are awarded during the three-year graduate programme and continue thereafter, with salaries potentially hitting £100,000+ after only six years with a business.

Graduate salaries in investment management

Many graduates start out on £31,000 to £35,000 a year. However, salaries can fall on either side of this figure, with some employers offering upwards of £25,000 and others offering £40,000+. The latest AGR Graduate Recruitment Survey of its members, which include the largest investment management firms, revealed that they expected to pay an average graduate starting salary of £43,000 in 2013 to 2014.

Potential earnings in investment management

As your career progresses after the graduate programme, so does your salary. Between five and eight years in the industry can see you take home £55,000 to £90,000. When you reach senior positions, such as associate or management, you could be earning well over £100,000. These figures don’t include the hefty bonuses available, which can be up to 200% of your salary at management level.

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