A first-year investment banking analyst in New York City earns a base salary of roughly $110,000, plus a performance bonus of $60,000 to $110,000, for total compensation of about $180,000 to $220,000. Pay climbs each year: second-years clear $210,000 and third-years can reach $270,000 or more, with elite boutiques paying a premium over the bulge brackets.
Key takeaways
- Base pay is standardized. Bulge-bracket first-year analysts earn a ~$110,000 base, up from $100,000 in 2021 and $85,000 pre-pandemic (Wall Street Prep).
- Bonus is the swing factor. First-year bonuses run 50% to 100% of base, and top-bucket versus bottom-bucket placement moves total comp by 40% to 70% at the same title.
- Total comp scales fast. First year ~$180K–$220K, second year ~$210K–$265K, third year ~$250K–$300K+ at the top (Mergers & Inquisitions).
- Elite boutiques pay more. Firms like Evercore and PJT Partners run a 20% to 40% premium over bulge brackets and often pay bonuses fully in cash.
- NYC carries a premium. Analysts in New York earn 10% to 15% more than comparable roles in secondary markets.
What an investment banking analyst actually earns
The base salary is only the floor. Analysts are paid a base plus a discretionary year-end bonus tied to individual ranking, group performance, and the firm's overall results. The bonus is where the real money sits, and it is why two analysts at the same desk with the same base can end the year $80,000 apart.
Base salaries by analyst tier in NYC:
| Tier | Base salary (NYC) | Notes |
|---|---|---|
| Analyst 1 | ~$110,000 | Bulge-bracket standard; ~$100K–$120K across the street |
| Analyst 2 | ~$115,000–$125,000 | Automatic step-up after first full year |
| Analyst 3 | ~$125,000–$150,000 | Increasingly rare as banks compress to two-year cycles |
Base figures reflect the post-2021 pay resets. Goldman Sachs led the last wave, lifting entry-level base from $85,000 to $110,000, and most major banks matched (Wall Street Prep).
Total compensation by bank type
Bonus size, not base, is what separates a good year from a great one. First-year bonuses typically land at 50% to 100% of base; senior analysts can see bonuses that exceed their base entirely. Total compensation also splits sharply by the type of firm.
| Bank type | Analyst 1 total | Analyst 2 total | Structure |
|---|---|---|---|
| Bulge bracket (Goldman Sachs, JPMorgan, Morgan Stanley) | $180K–$220K | $210K–$265K | Base + cash bonus; some deferred stock at senior levels |
| Elite boutique (Evercore, Lazard, PJT, Centerview, Moelis) | $185K–$220K | $250K–$300K+ | 20%–40% premium; bonuses often 100% cash |
| Middle market | ~15%–25% below bulge bracket | ~15%–25% below bulge bracket | Lower deal fees, smaller bonus pools |
Elite boutiques win on take-home for two reasons: larger bonus pools per head and cash-heavy payouts rather than deferred equity. Middle-market firms trail because their deal fees and bonus pools are smaller, though the hours are often lighter and the exit paths still strong.
Why NYC analysts are paid this much
New York is the center of US deal flow, and the banks headquartered there compete for the same few thousand graduates each year. Three forces drive the numbers:
- Scarcity. Top banks receive thousands of applications for a handful of analyst seats, so pay is a filter and a retention tool.
- Deal economics. M&A and leveraged finance groups generate the highest fees, so analysts in those groups typically sit at the top of the bonus range.
- Cost of living and competition. The 10% to 15% NYC premium over other financial hubs reflects both the cost of living and the pressure to keep talent from leaving for private equity.
What the base salary leaves out
Headline comp understates the package. Most banks add a signing bonus of $10,000 to $50,000 for incoming analysts, relocation support, comprehensive medical and dental coverage, and a 401(k) with employer matching. The trade-off is real: 70 to 90 hour weeks are common, and the two-year analyst program is designed as a springboard into private equity, hedge funds, or an associate promotion rather than a permanent post.
For a firm-specific breakdown, see our Goldman Sachs analyst pay guide. To weigh banking against other high-income tracks and map the path from a big paycheck to financial independence, browse our career and compensation guides.
Sources
- Mergers & Inquisitions, Investment Banker Salary and Bonus Report (2026 update): https://mergersandinquisitions.com/investment-banker-salary/
- Wall Street Prep, Investment Banking Analyst Salary Guide: https://www.wallstreetprep.com/knowledge/investment-banking-analyst-salary-guide/
- Wall Street Oasis, 2026 IB Analyst Bonus Megathread (2025 consolidated pay): https://www.wallstreetoasis.com/forum/investment-banking/official-2026-ib-analyst-bonus-megathread-with-2025-consolidated-pay-and
- Selby Jennings, USA Investment Banking Compensation Guide 2025: https://www.selbyjennings.com/en-us/industry-insights/compensation-guides/usa-investment-banking-compensation-guide
Frequently asked questions
How much does a first-year investment banking analyst make in NYC?
A first-year analyst in New York City earns a base salary of roughly $110,000 plus a performance bonus of $60,000 to $110,000, for total compensation of about $180,000 to $220,000. The base reflects post-2021 pay resets, up from $100,000 in 2021 and $85,000 pre-pandemic, after Goldman Sachs led the last wave and most major banks matched.
Why can two analysts at the same bank earn so differently?
The bonus is the swing factor. Analysts are paid a base plus a discretionary year-end bonus tied to individual ranking, group performance, and firm results, so two analysts at the same desk with the same base can end the year $80,000 apart. First-year bonuses typically run 50% to 100% of base.
Do elite boutiques pay more than bulge-bracket banks?
Yes, firms like Evercore, Lazard, PJT, and Centerview run a 20% to 40% premium over bulge brackets and often pay bonuses fully in cash. They win on take-home for two reasons: larger bonus pools per head and cash-heavy payouts rather than deferred equity. Middle-market firms trail bulge brackets by roughly 15% to 25%.
What benefits does an analyst get beyond base and bonus?
Beyond base and bonus, most banks add a signing bonus of $10,000 to $50,000 for incoming analysts, relocation support, comprehensive medical and dental coverage, and a 401(k) with employer matching. The trade-off is real, since 70 to 90 hour weeks are common and the two-year program is designed as a springboard into private equity, hedge funds, or an associate promotion.
Why are NYC banking analysts paid a premium over other cities?
New York analysts earn 10% to 15% more than comparable roles in secondary markets because the city is the center of US deal flow and banks compete for the same few thousand graduates each year. Scarcity makes pay a filter and retention tool, M&A and leveraged finance groups generate the highest fees, and firms fight to keep talent from leaving for private equity.