"Why hire associates on $250k, when you could hire me, a director, for $350k?"

8 May 2025

2 minute read

I am a 45-year-old year female investment banker and no one will hire me. I have decades of experience. I have run small teams. I have done deals. I have liaised with clients. Ageism is destroying my career.

I've been out of the market for a year and am continuously told that I am "overqualified." I am expensive, but not in banking terms. - I would happily accept a role paying $350k and would generate more than that in fees.

Instead, banks are hiring associates who cost them nearly as much. Ever since salaries for junior bankers rose a few years ago, the differential between pay for associates and pay for the mid-ranks has fallen. Associates at most banks are now earning $250k all in. That's a lot to spend in a down market.

These associates don't generate any income. They just work on deals that other people have generated, and that makes them very expensive in this market. In many cases, associates aren't taken anywhere near the clients.

As banks try to cut costs, it seems that they're trying to run teams comprised of managing directors and associates, and are skipping the directors. This makes no sense. It would be better to run teams comprised of directors and associates - except that doesn't happen because the MDs often decide who to let go.

It is a foolish state of affairs. And it means that I am stuck.

Karen Cargill is a pseudonym

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AUTHORKaren Cargill

Insider Comment

Sm
Smoot Hawley
11 May 2025
Chat GPT is the director now.
Reply
Gr
Grind
10 May 2025
It’s a challenging market. The value proposal is that associates will work harder and be more receptive to comments; and as a senior/more experienced person, you are better suited to seek a MD adjacent role (client or mgmt) rather than pitching yourself as a high functioning associate.
Reply
It
Ito Lemma
9 May 2025
Because people never want to hire their boss. The boss is prob in his/her late 30s and a 45y old poses a threat and a liability. That's why 30y old-something desk heads or early 40y old-something division heads don't hire people with 20-25y experience. It is to protect their own livelihood and position. It is entirely about control. Someone in their mid to late 40s will have a wealth of experience and may have better and deeper client relationships than the MD who's in their 30s. Overall, it is just a risk to the MD or desk head at the end of the day. They rather have a "yes" person than hiring someone who may undermine their decisions or the way they run their business unit. Lastly, there is a perception that people in their 40s won't work as hard as a younger person which is not true. I think Gen Z just complain, work less hrs, and are more difficult to deal with bc they are know-it-alls or always are entitled where as a Gen X just gets their work done and are better team players
1 reply
Te
Temidire
9 May 2025
I'm not entirely aware of the potential difficulties that this might entail, but perhaps you may set up your own boutique firm. You have decades of experience, with a client list full of people who trust you, and I'm sure you also have a network of professionals who wouldn't mind being in your employ. Again, just a student, so this is just a student's suggestion.
1 reply