The Truth Behind Investment Banking Working Hours & Salary

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      The Truth Behind Investment Banking Long Working Hours

      Last Update On 23rd January 2025
      Duration: 5 Mins Read

      Investment banking is often associated with long hours, high stress, and intense workloads. Many considering a career in investment banking are concerned about the investment banking work schedule. The investment banking career path can seem overwhelming, especially with the notorious investment banking hours. But how much of this is myth and how much is reality?

      This article looks at the reality of long working hours in investment banking, the effect on professionals, and the trade-offs between compensation, career growth, and personal life. A better understanding of investment banking work and why the hours are so long will put the aspiring candidate in a better position to prepare for the challenges that lie ahead.

      What is the Structure of Investment Banking Workdays?

      A day in the life of an investment banker is pretty fast and demanding. It usually starts around 9 AM, though the starting time varies, and more come in early if there is a critical deal going on. The work involves meetings, conference calls, financial modelling, research, and preparation for client presentations.

      Evenings often extend beyond the standard hours, with work continuing well into the night, especially during peak periods like mergers or IPO preparations. While some evenings may finish at 9 or 10 PM, it is not unusual to work until midnight or later.

      These investment banking hours may differ depending on the firm; however, for the most part, bankers have to work through the weekends owing to meeting certain deadlines or just addressing last-minute client needs, so it is unpredictable.

      What is the Myth vs. Reality of the 100-Hour Workweek?

      It would be regarded as a myth. Though long, the number of hours does vary from firm to firm. Yeah, bankers could manage to put in up to 100 hours when it was most busy, for certain periods in some banks. Hence, for these top ones that include, but are not limited to, Goldman Sachs, JPMorgan, and Morgan Stanley, bankers do really have to put in 100-plus in some very hectic periods; they might average anything within 60-80 a week with some heavy periods needing extras.

      Investment banking hours may be above and beyond the norm of a single workweek, but they usually don’t reach 100 hours all the time. The myth is often sensationalized in media portrayals, while the reality is such that bankers go through periods of varying work depending on the time of year, deal flow, and firm-specific demands.

      What is the Impact of Long Hours on Bankers?

      It is usually considered an emotionally and physically ruthless job, and these investment bank working hours have their own effects on every professional who is a part of the investment banking environment.

      Long hours in investment banking can be extremely detrimental and lead to burnout. Working for extended lengths consistently leads to stress, fatigue, and poor mental health. Bankers often experience sleep deprivation due to tight schedules that barely leave time to rest and maintain a life outside of work. This is the constant pressure that has accounted for many professionals burning out and quitting the field after a few years of working.

      Another effect of long hours is the stress on personal relationships. An inability to spend quality time with family and friends can be a serious downside of the job. Many investment bankers feel that personal life is sacrificed to work, leading to feelings of isolation or dissatisfaction. Indeed, the balance between work and personal life is so unbalanced in investment banking that some bankers develop anxiety or depression due to an inability to disconnect from work.

      The hours of long working also affected physical health. Sitting long, having food at the wrong times, and stress for big deals take a greater toll on the general health condition of an investment banker. Some firms have really worked on maintaining the atmosphere inside the firm to create a balance between office work and life; still, in reality, hours are very difficult to get along with.

      Why Do Investment Bankers Work Such Long Hours?

      The reasons lie in the nature of investment banking work itself.

      Client Needs:

      The clients require speed and efficiency; hence, investment bankers are usually required to stay up all night in order to give updates on the developments that are taking place.

      Deal Deadlines:

      Large deals come with tight deadlines, which a banker has to meet. Hence, the hours at work are really long to keep up and finish on time.

      Competitive Industry:

      Investment banking is tremendously competitive. Probably one major reason for such long hours in this industry is that employees feel compelled to do more than others and outperform their peers.

      High Stakes:

      Investment bankers handle large transactions, and the pressure to make sure everything is accurate and goes well makes for long days.

      These are all contributing factors for putting in long hours, but this is a demanding, rewarding career.

      How Does Investment Banking Compensation and Career Growth Align with Long Hours?

      Investment bankers are among the highest-paid professionals in the finance industry. This high remuneration often compensates for the investment banking hours, though it doesn’t negate the intense pressure of the job.

      Salaries in investment banking are very role-dependent and even more so experience-dependent. The base salary for an entry-level analyst at a top investment bank can range from $100,000 to $150,000 per year, with the potential for up to 100% or higher bonuses. Moving along the investment banking career path, salaries rise accordingly, and vice presidents and managing directors are paid in millions of dollars each year, contingent upon performance and bonuses.

      But let us not forget, all these monetary benefits come at a price. The professionals have long  working hours in investment banking, which often comes at the cost of personal time, health, and relationships. To the candidates who are considering this field, it’s time to weigh the investment banker salary against the work-life balance and personal well-being that it will cost.

       

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      What are Tips for Maintaining Work-Life Balance in Investment Banking?

      Although investment banking occupations are a hectic activity, actions that will alleviate them in maintaining good personal life or well-being would be required.

      1. Set Boundaries: Set clear boundaries for work-life and communicate when you need time off.
      2. Keep Healthy: Regular exercise and sleep can balance stress and even enhance productivity despite long hours.
      3. Use Downtime Wisely: During quieter periods, take advantage of the time to recharge and reconnect with family.
      4. Delegate: Time and delegation are needed to maintain the balance of workload.
      5. Seek Support: Businesses these days take very good care of their employees. Approaching HR or a manager can help lessen the burden of stress.

      With these strategies in place, it is possible to have balance even with the hours of investment banking.

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      Conclusion

      It is considered that the work environment of an investment bank faces very long hours, a high level of stress, and tremendous pressure. The hours of work and the reality of long workweeks involved in investment banking are some things a candidate should know when it is financially rewarding and offers career advancement opportunities through an investment banking certification.

      Success lies in understanding the nature of the work, managing expectations, and maintaining a work-life balance. Notwithstanding the demanding hours in investment banking, appropriate strategies would see one navigate the intensity of the job while pursuing a fulfilling career.

       

      FAQ on Investment Banking Working Hours

      Do investment bankers work 100 hours?

      Although it is not uncommon for investment bankers to work upwards of 100 hours a week when times are busy, the average workweek is more in the line of 60-80 hours, depending on deadlines and the flow of deals.

      How many hours do you work in an investment banking job?

      On average, an investment banker works around 60 to 80 hours per week, but this may increase in periods with high-intensity activities such as mergers or IPOs.

      Do investment bankers work 7 days?

      Yes, investment bankers may work on weekends, especially as the deadlines for crucial projects approach or when the transactions are time-sensitive.

      How many hours a week do you work at Goldman Sachs?

      Workweeks for Goldman Sachs vary between 60 and 100 hours, depending on the stage of the transactions and role.

      How stressful is investment banking?

      Investment banking is considered to be one of the most stressful jobs because long hours, high expectations, and tight deadlines take a toll on mental and physical health.

       

      Anant Bengani, brings expertise as a Chartered Accountant and a leading figure in finance and accounting education. He’s dedicated to empowering learners with the finest financial knowledge and skills.
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