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Investment Banking Managing Director Salary

Base and bonus salaries for the almighty Investment Banking Managing Directors

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Managing Directors are at the top of the investment banking food chain.  They are responsible for relationship building with clients and revenue generation for the firm. The investment banking managing director salary (all-in comp) ranges from just under $1 million to several million dollars. This compensation is comprised of both a base and bonus component:

  • Base salary: $350,000-$600,000 at most bulge bracket and boutique investment banks.
  • Bonus: can range from 100% – 200% of base for all in comp anywhere between just under $1 million to $2 million. Meanwhile, seasoned MDs can make significantly more based on revenue they’ve generated for the firm.

An MD earning significantly less than $1 million at a competitive group in a solid investment bank is considered to be doing poorly.

Why the huge bonus range? Unlike the more junior staff (analysts, associates) and the mid level staff (VPs and Directors), the large bulk of Managing Director compensation comes in the form of a bonus which is largely depended on how much business the MD has brought in. To reflect the importance of performance at the MD ranks, Goldman announced a few years ago that it would no longer guarantee its Managing Directors a minimum salary of $500,000.

Also, not every MD gets this kind of money

While larger, (“elite”) middle market firms are usually under but still in the ballpark of bulge bracket managing director salary ranges, compensation can be significantly lower at smaller regional middle market firms.

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