A Word from Travillian

Welcome to the inaugural edition of the Travillian FIG & Fintech Investment Banking Newsletter — a curated look at compensation trends, senior-level talent movement, and the professionals driving the industry forward.

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Travillian’s Investment Banking practice specializes in placing Group Heads and front-line professionals within, primarily within the Financial Institutions and Fintech verticals. We have made over 400 placements at Global, Middle-Market, and Boutique Investment Banks across the country — with almost 100% coverage of the universe of industry-specific investment banking professionals. We go to market with a differentiated story that captures each client’s unique value proposition, and our high-touch, consultative approach means we introduce candidates who are the ideal fit — not just a resume match.

How Wall Street Is Paying Its People in 2026

An In-Depth Look at Investment Banking Compensation Fueled by 2025 Performance

The Compensation Backdrop

Investment banking pay remains heavily performance-linked, with bonuses tied to revenues from M&A, equity underwriting, debt markets, and trading desks. Analysis of U.S. banking pay shows bonuses tied to 2025 results rose 5–15% on average, with debt underwriting up 25–35%, supported by recovering deal volumes and market volatility that boosted advisory and underwriting businesses. Firms across the bulge bracket landscape signaled larger discretionary compensation budgets than in recent years, while base salaries continued to rise only modestly.

Entry & Early Career Pay — Analysts and Associates

Junior bankers remain well-compensated relative to broader financial services, with firm type now driving meaningful divergence at every level. First-year Analysts at bulge bracket firms earn base salaries of $100,000–$125,000, with total compensation of roughly $190,000–$200,000; by the third year, that figure climbs toward $285,000 as bonuses scale. At elite boutiques, Analyst 1 total comp starts around $220,000 and reaches approximately $280,000 by year three — a premium reflecting both deal intensity and firm economics. Middle market Analysts are closely competitive, with first-year total comp near $190,000 and third-year approaching $230,000. Associates follow the same upward trajectory: bulge bracket Associates earn total compensation of approximately $315,000–$415,000, while elite boutique Associates can reach $385,000–$520,000 at the senior Associate level. Wide variance based on performance tier and firm type persists at every rung.

Mid-Level Pay — Vice Presidents and Directors

Compensation becomes significantly more heterogeneous beyond the first few years, and the spread between firm types widens considerably. Vice Presidents at bulge bracket banks earn total compensation in the range of $545,000–$580,000, while middle market VPs land in a comparable band of $525,000–$610,000. Elite boutique VPs command a clear premium: senior VPs can reach $820,000 or more in total compensation, with bonuses alone ranging from $415,000 to $800,000 at the VP3 level. Directors follow a similar pattern — bulge bracket Directors average roughly $725,000 in total comp, while elite boutique Directors average close to $970,000, with bonus ranges of $575,000–$700,000. Middle market Directors fall in between at approximately $690,000 in total compensation. Business mix matters: bankers in tech/healthcare M&A or high-yield debt origination typically earn larger variable pay than those in more cyclical areas.

Senior Leaders — Managing Directors and Above

At the top, compensation concentrates among rainmakers who originate business, manage key client relationships, and drive major revenue. Managing Directors at bulge bracket banks average roughly $1.325 million in total compensation — a $400,000 base paired with an average $925,000 bonus, with bonus ranges of $550,000–$2,650,000. Elite boutique MDs earn substantially more: an average base of $440,000 combined with an average bonus of $1,805,000 places total compensation near $2.25 million, with bonus ranges of $1,460,000–$3,100,000. Middle market MDs are structured differently, with bonuses averaging approximately 28.5% of a $320,000 base. Boutique (non-elite) MDs earn a $250,000 base with bonuses in the 25%–35% of base range. Senior packages at larger institutions increasingly blend cash bonuses with deferred compensation, equity awards, and retention-linked stock units that vest over multiple years.

Key Themes for the 2026 Cycle

Bonuses rebounded after recent softness, with senior bankers benefiting most from improved conditions. Junior to mid-level bankers saw moderate total-comp increases driven primarily by bonuses, while base salaries remain largely stable across all firm types. Senior pay continues to steepen sharply — the gap between bulge bracket and elite boutique MD total compensation now exceeds $900,000 on average, underscoring how dramatically firm type and origination track record influence outcomes at the top. Variability across firms remains pronounced: elite boutiques pay a clear premium at nearly every level relative to bulge bracket and middle market peers, most dramatically at the VP level and above.

Looking Ahead to 2027

Continuation of rising bonus pools depends on sustained deal activity, credit markets, and macro volatility. The balance of base pay, cash bonuses, and deferred compensation will be critical for retention — especially as private equity and hedge funds compete aggressively for talent amid post-bonus mobility spikes. Regulatory changes around executive pay and deferred compensation could also reshape senior package design in the coming years.

2025 Investment Banking Compensation Summary

The tables below reflect base salary and bonus compensation data collected across firm types. All figures are in USD and rounded to the nearest $5,000.

† For Boutique and Middle Market Managing Directors, bonus is reported as a percentage of base salary as provided by individual firms.

Boutique Investment Banks

Middle Market Investment Banks

Elite Boutique Investment Banks

Bulge Bracket Investment Banks

Travillian Market Observations

Big Boys Driving Senior-Level Hiring

Global/bulge-bracket banks (e.g., JPM, MS, BofA, Citi, Wells Fargo) and elite boutiques (e.g., Evercore, Centerview, Moelis, PJT, Lazard) have indeed been more aggressive on targeted senior-level lateral hiring—particularly proven rainmakers, MDs, and experienced VPs/Directors with origination track records and complex/public M&A experience. Middle-market and smaller boutiques, by contrast, have prioritized operational efficiency, AI-driven workflow optimization, and maximizing existing team productivity over broad headcount expansion.

Reasons:

• Large M&A deals drive hiring. In 2025, U.S. megadeals (valued at over $5 billion) reached a record annual value of $1.5 trillion, the highest on record, with 97 such deals announced. That Trend has continued into 2026. (Source: https://mergers.whitecase.com/highlights/us-megadeals-reach-record-high-as-big-businesses-splash-the-cash) 
• Compared to the Middle Market firms, bulge-bracket banks have historically over-hired during booms and over-fired (or aggressively cut costs) during busts due to their size, public/shareholder pressures, and higher fixed overhead.  
• Smaller boutiques and middle-market firms typically operate with thinner balance sheets and less diversified revenue than bulge brackets, which benefit from trading, lending, and deposit bases. After the slow 2023–2024 M&A years with limited fee pools and tighter cash flow, many smaller platforms adopted a more conservative approach rather than hiring bankers that require large guarantees or revenue shares. 

What’s Motivating Execution Bankers to Change Firms

They say, “timing in life in everything.” This statement rings very true for Analysts, Associate and Vice Presidents open to switching firms this bonus season. Two years ago, their inboxes and emails were void of recruiter outreach…but this year, these same folks, in many cases, can say “who, what, where, when, and why.” The reasons are always the same, but what are the current nuances behind these drivers in 2026. Here’s our ranking in the order of prevalence.

1. Compensation:  In 2025, and so far in 2026, “money can buy happiness.” Driven by depressed compensation numbers in 2023-24, execution bankers are hyper focused on the big pay day. In particular, Elite boutiques were able to wield the “big stick” by offering outsized compensation packages to attract bankers. Soft on pay global i-banks and lower middle market firms, in particular, were susceptible to this type of poaching.  
2. Advancement: Increased deal flow opened advancement opportunities at many investment banks, and execution bankers took note…no longer just happy to be employed. 
3. Lack of Deal Flow: Normally a strong contender for that 2^nd spot if not for the fact that most investment bankers currently have a full plate of live transactions.  In this environment, if you’re execution team isn’t busy working on sexy M&A transactions or impactful capital raises, they’re almost certainly out shopping their resume.  
4. Brand Upgrade: While we sometimes cringe when candidates suggest “Brand” as their #1 evaluation point for a new opportunity (because, in many cases, their reasoning is flawed), it is a driver with merit. The active deal market and corresponding competitive market for talent has opened the window of opportunity for junior and mid-level bankers that desire to work on bigger deals and possess the fancy business card. The “Brand Upgrade” is essentially the movement of bankers from the boutique (non-elite) and middle markets firms to the global and elite boutique investment banks…and it’s super prevalent these days.  
5. Improved Culture/Work-Life Balance: While dominant drivers during and just after Covid, culture and work-life balance has taken a back seat as a job change motivator. “Show me the money” …and I’ll work hard is back in fashion.   

Non-Traditional Hiring Shift

Driven by a tight labor market, banks anticipated a strong 2026 M&A market and proactively hired from Big 4 Transaction Services and Equity Research, expanding beyond traditional lateral and MBA pipelines. Non-traditional profiles now represent ~25–35% of junior and mid-level hires, increasing competition and limiting traditional entry points. Firms are increasingly targeting A-tier non-traditional talent, accepting a short ramp-up period in exchange for stronger, long-term upside versus hiring a lower-tier lateral. Smart!

FIG & Fintech Investment Banking Hires — 2025/2026

The following table tracks senior-level calling officer moves within the Financial Institutions and Fintech Investment Banking space from January 2025 through April 2026. This intelligence is a core part of Travillian’s market monitoring service — providing real-time tracking of hiring activity among leading firms. 

Source: Travillian proprietary market intelligence. Data reflects publicly announced or confirmed moves at Managing Director, Director, and equivalent-level professionals. 

Contact Info

Our Investment Banking Search practice is led by senior professionals with deep networks across the FIG, Fintech, and Real Estate investment banking ecosystem. We combine market intelligence, relationship depth, and a consultative approach to deliver the right talent to the right organizations. 

David Yancoskie	Managing Partner & Head of Investment Banking Search  (610) 724-0645 | dyancoskie@travilliangroup.com
Adam Yancoskie	Principal, Investment Banking Search  (610) 724-9336 | ayancoskie@travilliangroup.com
Giancarlo Gomes	Search Consultant, Investment Banking Search  (201) 406-0159 | ggomes@travilliangroup.com
Michael Federico	Search Consultant, Investment Banking Search  (610) 930-8292 | mfederico@travilliangroup.com

To learn more about Travillian’s Investment Banking Search practice or to discuss a search engagement, please contact us at travilliangroup.com or reach out directly to any member of the team above. 

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