Beyond the seven-figure salary.
Reported by Charmain Kok in the Business Times today:
Investment bankers work long and irregular hours in a highly stressful environment.
When one thinks of investment banking, the first things that come to mind are the tales of seven-figure salaries and images of the high life that comes with wining and dining high-profile clients. It is no wonder then, that the industry has become the top career choice for many of the brightest fresh graduates around the world. But before jumping onto the bandwagon, here is a brief guide to what the job entails.
What do investment bankers do?
In short, investment bankers help companies to raise capital by issuing and selling securities in the capital markets. They also advise clients on mergers and acquisitions, placements, restructuring and listing on stock exchanges.
According to Jennifer Goh, a consultant in the front office banking division at recruitment consultancy Robert Walters Singapore, there are client coverage bankers as well as execution bankers. 'Client coverage bankers tend to be known as the bankers who wine and dine the clients, establish contacts and bring the deals through the doors; while execution carries out the deal to completion,' Ms Goh explained, adding: 'The Singapore market is fairly small, therefore most of the bankers here have a dual client and execution role.'
Fact or fiction?
Sometimes, it's hard to differentiate between truth and folklore from the investment banking world. Here are some things to take note of:
Exposure to high profile clients
Due to the nature of their jobs, investment bankers get to meet a lot of high-profile, dynamic and influential individuals. 'You get to rub shoulders with some of the who's who in the industry and senior management, as well as wine and dine with clients on the banks' accounts,' shared Ms Goh. However, be prepared to get a taste of this only when you become vice-president, which usually happens around the seventh year in investment banking. 'Otherwise, you will be stuck staring at your screen, crunching numbers,' she added.
Attractive remuneration, long working hours and health hazards
As most probably know, the salary compensation for investment bankers is potentially enormous. According to Ms Goh, fresh graduates can expect to receive around $90,000-$110,000 per year, excluding additional allowances and bonuses.
However, working hours for investment bankers are known to be long and irregular, with 100-hour work-weeks being very common. The constant long working hours and highly stressful environment might take a toll on one's health and personal or social life.
'The demands and nature of this industry will inevitably keep an investment banker's lifestyle very much skewed towards work,' warned Ms Goh. So be prepared to be very devoted, committed and passionate about one's job in investment banking.
Involvement in high-profile transactions
One of the best upsides of a career in this field is the chance to be involved with high-profile transactions, which make the news headlines.
For UBS investment banking analyst Calvin Li Xiangrun, who was a fresh graduate from Singapore Management University only a year ago, one of the main reasons for entering the industry was the wide exposure to different types of transactions and the vast learning opportunities available.
'Some of the key attractions to me was the wide variety of assignments across various industries. In UBS Singapore, we got numerous opportunities to execute transactions across Malaysia, Indonesia, Singapore, ranging from IPOs and debt offerings to mergers and acquisitions,' he said.
'I enjoy the ability to take on early responsibilities and getting to work closely with companies, even as a junior banker,' added Mr Li. 'In the execution of IPOs, you get to meet with the management and work closely with them under the mentorship of the senior bankers. Interacting with management, learning about the industry and the company was really insightful and an eye-opening experience for me.'
What do you need to get in?
Gary Lai, manager of Robert Walters' front office banking division in Singapore, admits that in hiring fresh graduates, investment banks place a strong emphasis on academic track record and the schools that students graduate from. However, aside from grades, an outstanding involvement in extra-curricular activities that exemplifies leadership qualities is just as important.
Prior knowledge in finance or accounting is not required, as investment banks often hire employees with educational backgrounds as diverse as philosophy and engineering. Furthermore, banks often have structured training programmes which will ensure that its bankers have the necessary knowledge and technical skills to perform their jobs.
Aside from hard knowledge, communication and people skills are vital for investment bankers, as Mr Lai explained: 'Investment banking is after all, a sales role. Therefore, communication, presentation, selling and relationship management skills are critical. A fresh graduate who comes with these skills and is analytically and numerically inclined but does not come with a first class honours may come up tops against someone who only possess a first class honours.'
To Mr Li, traits like being highly motivated, a strong team player, having strong analytical skills and good time management skills are critical to being a good investment banker. Due to the high pressure environment and long working hours, time management and the ability to multi-task is key as well.
'This job is more suited for someone who is fresh out of school, self-driven, loves the fast-paced life and has little commitments,' commented Mr Lai.
For all investment banking hopefuls, Mr Lai's advice is to research, work on the resume and re-evaluate if one is really cut out for the job. 'Everyone wants to get into investment banking for the money and prestige, but these alone are not enough to carry anyone through years of late nights and burnt weekends. We would advise candidates to self-evaluate if they indeed have the qualities and aptitude to be an investment banker in the first place.'
Stumble it!
Investment bankers work long and irregular hours in a highly stressful environment.
When one thinks of investment banking, the first things that come to mind are the tales of seven-figure salaries and images of the high life that comes with wining and dining high-profile clients. It is no wonder then, that the industry has become the top career choice for many of the brightest fresh graduates around the world. But before jumping onto the bandwagon, here is a brief guide to what the job entails.
What do investment bankers do?
In short, investment bankers help companies to raise capital by issuing and selling securities in the capital markets. They also advise clients on mergers and acquisitions, placements, restructuring and listing on stock exchanges.
According to Jennifer Goh, a consultant in the front office banking division at recruitment consultancy Robert Walters Singapore, there are client coverage bankers as well as execution bankers. 'Client coverage bankers tend to be known as the bankers who wine and dine the clients, establish contacts and bring the deals through the doors; while execution carries out the deal to completion,' Ms Goh explained, adding: 'The Singapore market is fairly small, therefore most of the bankers here have a dual client and execution role.'
Fact or fiction?
Sometimes, it's hard to differentiate between truth and folklore from the investment banking world. Here are some things to take note of:
Exposure to high profile clients
Due to the nature of their jobs, investment bankers get to meet a lot of high-profile, dynamic and influential individuals. 'You get to rub shoulders with some of the who's who in the industry and senior management, as well as wine and dine with clients on the banks' accounts,' shared Ms Goh. However, be prepared to get a taste of this only when you become vice-president, which usually happens around the seventh year in investment banking. 'Otherwise, you will be stuck staring at your screen, crunching numbers,' she added.
Attractive remuneration, long working hours and health hazards
As most probably know, the salary compensation for investment bankers is potentially enormous. According to Ms Goh, fresh graduates can expect to receive around $90,000-$110,000 per year, excluding additional allowances and bonuses.
However, working hours for investment bankers are known to be long and irregular, with 100-hour work-weeks being very common. The constant long working hours and highly stressful environment might take a toll on one's health and personal or social life.
'The demands and nature of this industry will inevitably keep an investment banker's lifestyle very much skewed towards work,' warned Ms Goh. So be prepared to be very devoted, committed and passionate about one's job in investment banking.
Involvement in high-profile transactions
One of the best upsides of a career in this field is the chance to be involved with high-profile transactions, which make the news headlines.
For UBS investment banking analyst Calvin Li Xiangrun, who was a fresh graduate from Singapore Management University only a year ago, one of the main reasons for entering the industry was the wide exposure to different types of transactions and the vast learning opportunities available.
'Some of the key attractions to me was the wide variety of assignments across various industries. In UBS Singapore, we got numerous opportunities to execute transactions across Malaysia, Indonesia, Singapore, ranging from IPOs and debt offerings to mergers and acquisitions,' he said.
'I enjoy the ability to take on early responsibilities and getting to work closely with companies, even as a junior banker,' added Mr Li. 'In the execution of IPOs, you get to meet with the management and work closely with them under the mentorship of the senior bankers. Interacting with management, learning about the industry and the company was really insightful and an eye-opening experience for me.'
What do you need to get in?
Gary Lai, manager of Robert Walters' front office banking division in Singapore, admits that in hiring fresh graduates, investment banks place a strong emphasis on academic track record and the schools that students graduate from. However, aside from grades, an outstanding involvement in extra-curricular activities that exemplifies leadership qualities is just as important.
Prior knowledge in finance or accounting is not required, as investment banks often hire employees with educational backgrounds as diverse as philosophy and engineering. Furthermore, banks often have structured training programmes which will ensure that its bankers have the necessary knowledge and technical skills to perform their jobs.
Aside from hard knowledge, communication and people skills are vital for investment bankers, as Mr Lai explained: 'Investment banking is after all, a sales role. Therefore, communication, presentation, selling and relationship management skills are critical. A fresh graduate who comes with these skills and is analytically and numerically inclined but does not come with a first class honours may come up tops against someone who only possess a first class honours.'
To Mr Li, traits like being highly motivated, a strong team player, having strong analytical skills and good time management skills are critical to being a good investment banker. Due to the high pressure environment and long working hours, time management and the ability to multi-task is key as well.
'This job is more suited for someone who is fresh out of school, self-driven, loves the fast-paced life and has little commitments,' commented Mr Lai.
For all investment banking hopefuls, Mr Lai's advice is to research, work on the resume and re-evaluate if one is really cut out for the job. 'Everyone wants to get into investment banking for the money and prestige, but these alone are not enough to carry anyone through years of late nights and burnt weekends. We would advise candidates to self-evaluate if they indeed have the qualities and aptitude to be an investment banker in the first place.'
Stumble it!