Investment bankers typically deal with corporate clients, advising them with regard to raising money to fund growth, and this most commonly comes in the form of an initial public offering (IPO).
In an IPO, investment bankers put together a prospectus, which is a formal document that provides details about the company to potential investors. This document details the company’s potential as well as risks involved.
Other than IPOs, Investment bankers may also help companies deal with mergers and acquisitions, as well as other private equity deals. This may involve facilitating those deals by means of loan structuring, and this requires some knowledge and experience with corporate finance.
Read Also: Guide To Private Banking In Singapore: Here’s How Much You Need To Earn Or Have To Open An Account
Academic Qualifications
A bachelor’s degree is the minimum qualification required to become an investment banker. While a range of degrees may be acceptable for this role, it helps to have a degree that that sharpens your ability to work with numbers. In general, math, finance, economics, business administration, data science or a related field would be beneficial.
Given the competitive nature of investment banking, a degree from a prestigious foreign university is generally preferred, alongside a good Grade Point Average (GPA).
Read Also: NUS, NTU, SMU, SUTD, SIT & SUSS: Complete Guide For Local University Courses Fees And How Much Starting Salary You Will Earn As A Fresh Graduate
Investment Banking Analysts
Investment bankers typically start off as Analysts, who spend most of their time creating financial models and creating pitch deck presentations or marketing collaterals. These models and presentations may be supervised by an associate who is typically more experienced and has worked in investment banking for a few years.
The starting salary for analysts ranges from between $84,000 – $130,000 a year.
Read Also: Salary Guide: How Much Does An Accountant In Singapore Earn?
Career Progression
After a few years working as an analyst, an investment banker can be promoted to an associate, who may be put in charge of supervising analysts, and managing relationships with clients. Their job falls more on communication and supervision, where they understand instructions from the Vice Presidents, and Directors, and communicate these to the Analysts. Thereafter, they are responsible for following up. They may also have some client interaction, where clients may approach an associate with questions.
Estimates for the average base pay for an investment banking associate ranges from $120,000 to $256,000 annually.
Investment banking associates may not necessarily be drawn from the pool of investment banking analysts. In general, someone who has had 3 – 6 years of work experience in corporate finance may be hired as an investment banking associate.
The next level for investment bankers is Vice President. The average base pay is estimated to range between $158,000 – $370,000. In general, job listings state a minimum of 7 years of work experience in corporate finance in order to apply to be a vice president in investment banking.
Read Also: Are You Earning As Much As Your Peers: How Much Is The Average Salary In Singapore For Every Age Group?
Executive Director/Managing Director
Executive Directors’ (ED) and Managing Directors’ (MD) salaries are highly variable; their annual salary can go into the millions. Most of their job involves developing and maintaining relationships with corporate clients, and their bonuses are usually based on the clients they are able to bring in. SVPs and MDs are rarely recruited from outside – they are usually promoted from within.
Read Also: Salary Guide: How Much Can A Data Scientist Earn In Singapore?
High Stress Environment
Working hours as an investment banker can be as high as 60-80 hours per week in Singapore, depending on the bank you are working at. It is also a stressful job that requires accuracy and attention to detail. While this job is no doubt very highly paid, with some new hires earning as high as $80,000-$100,000 a year, this job is also not for the faint of heart.
Read Also: Salary Guide: How Much Does A Lawyer In Singapore Earn?
The post Salary Guide: How Much Does An Investment Banker In Singapore Earn appeared first on DollarsAndSense.sg.