Job Responsibilities
As a summer analyst you hit the ground running just like you
would if you were a first-year analyst. The best summer analysts
are enthusiastic about learning new things. The level of
responsibility that you gain throughout the summer depends on
your ability to show that you are eager to learn.
Obviously the first couple of weeks on the job your superiors are
going to be giving you less interesting work. They are testing
your work ethic and attention to detail. As soon as you show
them that you can do the little things right, you'll gain more
and more responsibility (more interesting work).
I started out my first week doing company overviews (profiles).
You're going to make mistakes when you first start doing new
things, but it is unexceptable in banking to keep making the same
mistakes over and over again. Make sure you double check every
word and number before you hand it off to a superior (as a summer
analyst, everyone is superior to you). Remember, they treat you
as if you are a normal first year analyst until you prove that
you can't get the job done so pay attention to detail!
Next, they'll start you on pitchbooks. They'll let you team up
with another analyst or associate and help them put together a
pitchbook. If you don't know how to do something, ASK! Don't
waste time BSing...ask a question, LISTEN to the answer and get
your work done. There's not always going to be someone around to
answer your question. In that case, use common sense and take an
educated guess, but be sure that you can logically explain your
reasoning to a superior when they take a look at your work.
As the summer goes on, you should start to receive less guidance
from your superiors. They'll let you work on some comparable
company analysis and deal comps. It won't be easy at first, but
it's not rocket science either. Ask inteligent questions and
learn from your mistakes. As you start to understand and some of
the things you are doing make more sense, be extra careful about
making careless errors.
Top three characteristics of a good Summer Analyst:
1. Be eager to learn. Always ask if you can help someone with
something. Don't leave the office until you've asked all the
analysts and associates if you can help with anything.
2.Learn from your mistakes. Don't make the same mistakes over
and over again. Double check your work. People want to know
that when they are given something it is correct so pay attention
to detail.
3. Attitude. Don't complain about other analysts or associates.
Know your roll...you're just an undergraduate, you don't know
more about an industry/product/company than your superiors. Even
if you do, make them think that they're teaching you something
new. There are a lot of egos in banking. Don't be the guy/gal
that everyone hates to work with because you think you know
everything.
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Job Requirements
To get hired, you need to have above a 3.0 GPA. It doesn't
matter how many extra curricular activities you're in or how much
community service you've done if you don't have at least a 3.0.
Some companies like to see at least 3.4-3.5, but I know people
who have gotten interviews with 3.0-3.1. I've never heard of
anyone getting an investment banking interview with below a 3.0
so keep your grades up.
Extra curricular activities are a lot of help (athletics, clubs,
frats, etc.). In my opinion, I think a bank is more likely to
hire someone with a 3.2 and a lot of extra curriculars than some
dork who does nothing but hang out at the library all day and
gets a 4.0. The bottom line is...your resume has to say "this is
a person who would be interesting to talk to". All the GPA tells
them is that you are capable of learning new things.
Once you get the interview, make sure you sell yourself. The
interview should be more of a conversation than a question and
answer session. Make sure you are enthusiastic about why you
want to do banking. If they aren't convinced then they'll give
the job to someone that really does want to do it.
Most analysts stay in banking for 2-3 years, go get a job at a
Private Equity, Venture Capital, Consulting, or Asset Management
firm for a year, go back to business school, then really decide
what they want to do with their life. Some go back to banking,
some decide to be teachers, some go into PE, etc. Most analysts
get burnt out by long hours their first two years on the job, but
some get promoted straight to associate.
If you accept an offer as an associate with out going back to
business school, it's going to be real tough to ever quit doing
banking because there aren't many jobs out there that you can
make $200,000+ as a 26 year old without an MBA. A lot of people
recommend that you go back to business school to gain a little
bit better perspective on things.
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Uppers
You get to work with incredibly intelligent people who are very interesting,
motivated and competitive. At the same time, you get a very broad exposure to
finance and business practices in general. No two days will ever be the same
because there is always something new going on.
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Downers
The long hours are tough. Sometimes you'll get a Director or VP
who doesn't know exactly what he wants so he'll tell you to do
everything! Sometimes you get the feeling that some of the
senior bankers were teased throughout their childhood and
adolescence and now that they have some power, it is their duty
to make your life hell. Or maybe, they think that since their
senior bankers treated them like crap when they were analysts, it
is ok for them to treat you like crap too. No matter what job
you get, there's always gonna be someone like this, but nowhere
else are you forced to endure it for 80+ hours a week.
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Lifestyle
Analysts can expect to work 80+ hours a week. There are some slow times around
holidays and during the summer, but 80+ is typically standard for analysts. Some
banks are corporate casual (Deutsche, Morgan Stanley, Merrill) others are formal
(Lehman, CSFB, UBS, BofA), not sure about Citi, and JP morgan. Most banks have
pretty good diversity, especially at the analyst and associate level, but up at
the top it's still mostly all white and all male. Analysts don't really travel
that much. If you're fortunate to get staffed on a lot of deals, your travel time
can increase. Typically, I would say that most first year analysts travel no
more than once a month. Second year analysts on deals may travel 2 or 3 times a
month. MD's, Directors, and VP's are probably gone at least 2-3 days a week so
traveling increases as your seniority increases. There are always holiday
parties and summer softball or golf outings, but you only go if you can fit it in
around your work
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Compensation
Compensation for first year analysts is 55K base, 5-10 to sign,
and 25-45 year end bonus.
Second year, 60-65 base, 60 year end bonus
third year, 65-70 base, 65-70 year end bonus
1st year associate promote (w/o MBA), 25K to sign, 85K salary, 80-
110k year end bonus (sometimes prorated)
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Advice to Jobseekers
Check your ego at the door...don't think you're hot stuff just
because you got a job. Have the attitude that everyone in your
office knows more than you. Ask questions and take advantage of
working with so many bright people. Don't be intimidated by your
superiors and don't take it personally if they treat you like
crap. Work your tail off to become the best analyst you can
possibly be.
Going forward, I think the job outlook for Investment banking is
strong. The economy is picking up and deals are getting done!
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