The first condition for determining salary: the investment banking business itself makes money. Most of the investment bank's income is underwriting fees, and customers pay brokers according to a certain proportion of the raised funds. Why are customers willing to pay underwriting fees? First of all, customers are willing to pay for more profits. Second, customers must go through brokers. Since the channel system, brokers have enjoyed the license bonus, that is, the investment banking business such as IPO must be sponsored and underwritten by brokers, which is the basis for the existence of investment banking business. However, there are dozens of domestic securities firms, which limits the scope of competitors, and license barriers ensure the high profits of investment banking business.
The second condition for determining salary: the importance of employees to the development of investment banking business makes the company willing to pay high salary. Some financial institutions, such as state-owned banks, are also lying down to make money, or even make more money, but they are not necessarily willing to pay high salaries to their employees. Why are investment banks different? Because in addition to the barriers of brokerage licenses, investment banks have to rely on people. Starting from the sponsorship system, Bao Dai began to enjoy a certain right to speak, and a project must be signed by two Bao Dai. At that time, there will be more companies that want to go public, and fewer insurance companies can sign contracts. Scarcity determines the high salary of Baodai.
Golden decade of investment banks has passed.
Judging from the pattern of brokers, the number of brokers is increasing, but there are few listed companies. Accurately speaking, there are very few companies that meet the listing conditions. In the past, companies begged brokers to go public, but now it is the competition of multiple brokers in one company. When the industry growth slows down and the relationship between supply and demand changes, there are two changes in the industry. First, the profit level has declined; Second, the market concentration has increased.
Judging from the number of warranty generations, the number of warranty generations has been increasing, but the number of projects has not increased significantly every year. According to preliminary calculations, there are more than 3,000 registered sponsors of the association, which is not counted as double signing. If a project has two sponsors, you can sign 1, 500 projects. At present, only 100 projects are reviewed every year. At present, there is a surplus of insurance generation.
The decline in the wages of Baodai is also a trend.
In addition to the relationship between supply and demand, there are several major factors in the future: the first policy impact. After all, it is an industry that depends on the weather. One day, the change of policy will have a great impact on the whole industry pattern, and may even be a fundamental change. Of course, this change takes time. Second, the impact of marketization. Although enjoying the policy dividend, the essence of investment banks is still the service industry. Therefore, whether it is an investment bank or an investment bank employee, an important guarantee for obtaining high income is to continue to provide valuable financial services to customers.
Investment banks have different distribution mechanisms.
Besides salary, their biggest income is business commission. It means that a certain percentage of the income from a single business is paid to the business team, while investment banks often go it alone, and a single business can be completed by at most two people, so the commission is very high.
Investment banks are non-bank financial institutions engaged in securities issuance, underwriting, trading, enterprise restructuring, mergers and acquisitions, investment analysis, venture capital and project financing, and are the main financial intermediaries in the capital market.
There are many high risks, and then you will naturally get high returns. Taking venture capital as an example, the risk is high, but relatively speaking, the income is also high.
Investment is the most profitable!
This is real mental work. In order to reduce risks and pursue profits, they will actively innovate new investment models, guide new growth points, and boldly imagine and experiment every possible industry within a certain range.
For investment banks, the above-average salary can be analyzed from the following points:
1, high risk and high return. For investment banks, the main business activity is investment, but investment is accompanied by risks. Under the condition that the reporting ratio is proportional to the risk, high salary is normal;
2. The high income brought by the company's high profits must be faster than other industries for investment banks. For this kind of quick money, it is normal to pay more.
3, high education and high income, for investment banks, especially foreign investment banks, can be said to be elites, usually with a master's degree or above in finance or finance-related majors. For this group of investment bankers, going to other industries is also a high-paying family;
As the forefront of capital operation, investment bank can be said to be the foundation of capital operation and the foundation of capital to entity. High-tech is only a part of what we can see. It can be said that we know nothing about the professionalism and hard work of investment banks, such as reading various bank reports every day, studying fundamentals and analyzing data. It can be said that it is very hard. When there is a project, credibility analysis and risk control cases are even more essential.
Investment banks mainly play capital games to help enterprises finance, with few participants and high returns, so managers get high returns.
This is determined by the nature of investment banks.
For example, I am now working in an investment bank, serving mostly individual clients and few corporate clients.
Recommend suitable products to customers, and customers will be satisfied and get performance. Customers buy millions, so their performance is also high.
It's close to money.