Investment Banking Analyst Salary & Bonus Guide (2026)

What Do Investment Banking Analysts Actually Make?

Compensation is one of the biggest draws of investment banking — and one of the most misunderstood. The headlines about six-figure salaries for 22-year-olds are real, but the details matter. Here is what you can actually expect to earn as an IB analyst in 2026.

Base Salary by Year

Since the pay wars of 2021-2022, base salaries for first-year analysts at bulge bracket banks have settled at a new standard:

| Level | Base Salary (Bulge Bracket) | |-------|---------------------------| | Analyst 1 (first year) | $110,000-$120,000 | | Analyst 2 (second year) | $120,000-$135,000 | | Analyst 3 (third year, if applicable) | $135,000 |

These numbers are standard across Goldman Sachs, Morgan Stanley, J.P. Morgan, Bank of America, and Citigroup. Elite boutiques (Evercore, Centerview Partners, PJT Partners, Moelis) typically match or slightly exceed bulge bracket base salaries.

Bonus Ranges

Bonuses are where the real variation happens. They depend on firm performance, group performance, and your individual ranking (which you usually will not know explicitly).

First-Year Analyst Bonuses (2026 Estimates)

| Bank Tier | Bonus Range | Total Comp Range | |-----------|------------|-----------------| | Elite Boutique (Evercore, Centerview, PJT) | $90,000 - $150,000 | $220,000 - $250,000+ | | Bulge Bracket (GS, MS, JPM) | $70,000 - $110,000 | $180,000 - $220,000 | | Strong Middle Market (Houlihan Lokey, William Blair) | $50,000 - $80,000 | $150,000 - $195,000 | | Regional / Smaller Boutique | $30,000 - $60,000 | $130,000 - $170,000 |

Bonuses are typically paid in January-February for the prior year. First-year analysts receive a stub bonus that is pro-rated (since you start in June/July but bonuses cover the calendar year).

Factors That Affect Your Bonus

Your bonus is not random. Here is what drives it:

• Deal volume: Busy groups that generate high revenue tend to pay larger bonus pools
• Individual performance: Attention to detail, attitude, reliability, and the quality of your work product
• Bank profitability: In down years (like 2023), bonuses across the street can drop 20-40%
• Group ranking: Top-bucket analysts can earn 30-50% more in bonus than bottom-bucket analysts at the same bank

Hot Groups in 2026

Groups with strong deal flow tend to pay at the top of the range:

• Restructuring (Houlihan Lokey, PJT, Lazard): Countercyclical, consistently busy
• Technology M&A (Qatalyst, Goldman TMT, Morgan Stanley Tech): Strong tech deal market
• Healthcare (Centerview, Evercore): Stable deal flow from pharma M&A
• Sponsors / Financial Sponsors Group: Busy when PE activity picks up

How Compensation Progresses

Investment banking compensation scales rapidly as you move up:

| Level | Years | Total Compensation Range | |-------|-------|------------------------| | Analyst | 0-3 | $180,000 - $300,000 | | Associate | 3-6 | $275,000 - $400,000 | | Vice President | 6-10 | $450,000 - $700,000 | | Director / SVP | 10-13 | $500,000 - $1,000,000 | | Managing Director | 13+ | $1,000,000 - $5,000,000+ |

The jump from Analyst to Associate is significant, but the real wealth creation happens at the VP level and above, where bonus compensation increasingly dominates.

Is It Worth It?

At $180K+ in your first year out of college, IB analyst pay is objectively excellent. But context matters:

• You are working 80-100 hours per week in many groups
• On an hourly basis, the pay is closer to $40-50/hour
• The real value of IB is the exit opportunities — PE, hedge funds, corporate development, and venture capital roles that pay even more over time

Get the Offer First

Compensation conversations are meaningless if you do not land the offer. IB Flash helps you prepare for the interviews that stand between you and that first-year analyst paycheck. Explore our Comp Guide for the latest data and start drilling with our Question Bank.