An investment banking investment strategist talks you through what you can expect to earn after you join as a graduate

How much will you earn if you join an investment bank out of university? Quite a lot, even in these straightened times. As we noted last year, some banks are paying their first year graduate hires £50k.

This, however, may be an underestimation. The Guardian has been talking to an investment strategist, who helpfully describes the earning curve in a large investment bank as follows:

"Graduates come in with the rank of analyst. They make £40-45K, plus as a bonus about 20% of that – in good years, of course. You are an analyst for two to three years, then become an associate – sometimes after you do an MBA in between. Now you are making £70-80K plus 50-100% bonus. Again two to three years later, you move on to vice-president, with an income of a £100-130K plus a bonus that is 50-150% of that. Three to four years later you become director, taking home £150-200K plus anywhere up to 300% of that in bonuses. Finally there's the managing director, when you manage people, that's between £200-400K plus potentially a million (also known as a "bar") or more in bonuses. After MD there's head of region and then the C-positions [CEO etcetera] whose compensation you read about in the press. All of these numbers have increased by 30-100% since the new bonus rules. Smaller banks pay lower salaries, as do fund managers, and if you get a 0% bonus you're either out or the market is awful.”