So I have 2 job offers: one from a middle market Investment Bank with a good presence nationally, however they are a bit smaller in their recently acquired Houston office with 30 people. They pay 70K base with 5K signing. The thing with investment banking, your end of year bonus can range from 10-60K depending on the market and your firms performance. The position is Investment Banking Analyst. The money is phenomenal however, I have to work 80-100 hours a week. The other company is a supermajor, one of the fortune 10 companies in the world. They pay 62.5K base with 5K signing and only a 10% end of year bonus. It is an Accounting Financial Analyst position doing financial reporting. The work life balance is a lot better here with a 9/80 schedule but the pay is less and the job might not have as much growth opportunities. I know a lot about the oil industry but not so much about investment banking. I was wondering how big are the end of year bonuses and what can I reasonably expect? I know that after 2 years people often pursue private equity opportunities, I was wondering how my chances would be at getting into private equity, from a firm that is about the size of Simmons and Co. in Houston. What is the pay like at private equity and how many hours do people work there? How many hours do associates and vps make at these investment banking firms? Where would you go?
Investment banking is hell on wheels, and unless the middle market bank you're working for is actually a bulge bracket in disguise, and you're being modest, I don't think it's worth it for most if not all even considering career opportunities and etc. That said, a prestigious investment bank background can get you ridiculously far (it scales down a bit if you factor in middle market, but again that depends on what you define as such), and a job at the buy-side for a good PE firm is pretty much a ticket to the high life at reasonable work conditions. I have a friend who worked for a bulge bracket in NY, and he got first round for McKinsey and BCG despite (to my knowledge) zero demonstrable talent in cracking cases, as well as an easy crack at other bulge brackets, PE etc. I'm assuming you don't draw intrinsic interest in one field or the other, and that you draw intrinsic motivation from cash, and hustle. Looking at it from hours, I'd boil it down to a simple finance question---are your hours and present happiness now worth more than your hours and happiness in the future? If so, stick with oil. If not, venture into banking.
This is from some one that doesn't work in either industry but don't IB's pay grow fairly quickly also? I know it's different firm to firm, but if you'r $70K total comp job in Oil is only going to be $100K in 5 years, and your $100K total comp job in IB will be $400K in 5 years, then if you don't have family I'd take the IB job. Also, if you're salaried, 9 to 5 isn't really 9 to 5 anyways.
Do investment banking, exit ops will be better after 2 years, ESPECIALLY if you are looking at private equity. Yes the hours suck. You will be working late nights, weekends, and miss out on a social life. Just suck it up for 2 years and it'll be worth it careerwise. Private equity, venture capital, a bunch of ops for you in banking. That said, I don't know about the environment much for oil and gas. I know that work life balance is very good, and will continue to be good in the future. Even private equity guys work nearly as much as banking, especially at the best firms.
the investment bank and it isn't even close. bust your butt, do a good job and your career options will far surpass what you'd be looking at from a large oil company
You're kind of looking at two different ends of a spectrum. Banking sucks, but you will do and learn a lot more than you would at big oil. The one thing I would say is that private equity isn't necessarily the light at the end of the tunnel. Lot of variability in PE, but you could end up working hours similar to what you did in banking and be booted out in 2 years. Kind of a banking 2.0 in some ways. Pay is usually pretty good, though ($200+).
My gf works for an investment bank. She makes a whole lot from overtime hours. I don't get to talk to her much during the week. She also hates her job.
What's with the fresh meat nowadays muttering about "work/life balance" before being fed to the grinder?
Investment banking and it isn't even close. You're young. Work your butt off and pay your dues now. 2 years as a IB analyst will open 100X more doors for you than a Big Oil job.
You will make A LOT more money in investment banking, but just remember you will be working 80+ hour weeks for the next 5 years and 60+ hour weeks for the next 5 after that. All of my friends that are in investment banking don't really like it too much. That said the money is great and your long term options are great. I would go with the investment banking because you can always fall back and get that oil job if you hate the other.
Studies show that rich people are much more likely to regret having worked too much and "missed life" than middle class people regret having not worked enough wishing they made more money. There's something to be said for work-life balance, but it really depends on what is most important to you.
I agree with this. The Financial reporting position with the Oil Company will still be there when you decide the work-life balance with the IB isn't worth it(By then you'd at least have a big smile on your face everytime you look at your bank account :grin Then you can go get the lesser paying job with an Oil company.
Why not take the O&G job at 40 hrs per week, and spend another 20 hours per week studying investments and trading stocks for yourself? Sounds like you could make more money that way on less hours.
If you can handle the hours take the Ibanking. If you are thinking of going back to bschool for your mba, a few years in ibanking, coming from a top 10 undergrad bba will get you into a top tier graduate school. After that all the doors are open and you can go anywhere from pe to mgmt consulting with the MBB's.
