Travillian's Talent Talk
FIG & Fintech Investment Banking

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 Professionals — 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

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.

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.
• Compared to 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 is everything." This statement rings very true for Analysts, Associates and Vice Presidents open to switching firms this bonus season. Two years ago, their inboxes were void of recruiter outreach…but this year, these same folks can say "who, what, where, when, and why." Here's our ranking of motivations in order of prevalence:

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!

Senior-Level Movement Tracker

Calling-officer-level movement across the FIG & Fintech investment banking landscape, January 2025 through April 2026. This intelligence is a core part of Travillian's market monitoring service.

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