Amazing Viewpoint. Yes, I do understand the difference. thanks for your opinion…
Your grammar is beyond my comprehension.
A plumber or a male stripper?
Which is more appealing?
Is this like a CFO role?
I think you will still earn more in IB as an associate, but I don’t know if it is still enough to justify the culture difference.
no, this is very similar to that of M&A team at an IB except that as corporate developer you are the buy side. If you look at MSFT 10k, these guys make 2-10 acquisitions per year and some are multi billion dollars. MSFT, and all large companies have internal investment bankers.
I’m not convinced corp dev is a better gig than IB, brah. How is performance measured there? You originated and supported some acquisitions, maybe they were good or maybe there were bad. For a large deal integration can take years, measures of successful deal can be fuzzy, at the end of day you are a dispensable cost center whose comp is tied to parent company performance and operational metrics over which you have marginal influence.
When you grow in IB beyond an analyst monkey, you eat what you kill. Big deals, small deals, good deals, bad deals - your comp and performance metrics are tied to origination and closing. More directly relevant to your level of individual effort and ability.
The fact is nowadays, if you sign up with an IB from top MBA program it is considered last ditch effort aka failure. Most go to tech firms specifically as corp developers and corp strategy. Your performance is measured probably by the synergy it created and the rise in stock prices, earnings, margins etc just like any buy side. Pay is better, you actually have life, and it is very tough to get in. I got dinged for a position at microsoft few months ago. the pay was base of 130k which is like making 200k base in NYC and their bonus and stock options were comparable if not better than that of big bank IBs AND buyside firms in NY. Most importantly, you come to work at 9 and go home at 5pm.
Just like any buy side equity fund or PE fund, these teams are very small unlike sell side IB…so as the company earnings grow your department’s comp grows with it…I know that the pros clearly outweigh the cons here from what i have seen and heard…
Again, top perfomers from MBAs get these jobs at tech firms or go into mgmt consulting then next up is buy side firms. Usually in last place, IB.
9-5 and free shuttle to and from work and 6 in-campus restaurants…130k base in a city where you can rent a 2 bedroom for 1500 dollars with 30 min drive from MSFT campus…Almost too good to be true…well i didn’t get the job so…
brah, so much fake news in your post. SAD.
Yes, there has been some outlay of MBA grads to VC/Tech from top programs that traditionally go for IB. Primarily driven by millenials chasing unicorns and looking to “make a difference in the world” or “disrupt an ecosystem”. Certainly not driven by pay. Tech firms have tapped into this trend by offering collaborative open office spaces, stupid perks, flexible work environments and opportunities to innovate & disrupt by following your dream career. Whatever floats their boats, brah. No way on average cash pay is better than IB especially with the monster M&A bull market over the past several years.
In fact, IB recruitment at MBA programs is down cause more and more good analysts get promoted to associates and skip the MBA route altogether. It’s a two way street.
del
hmm interesting…As a person in finance in NYC, I would like to agree with you but that is just not the case…I’ve talked to MBA directors from top MBAs, recent alums, and career dept and they have said the same - that mgmt consulting and tech firm finance jobs and tech firm management jobs are beating out IB…Just what I’ve heard…Lot of these tech firms (excluding MSFT because it is based in Seattle) in SFO which have simialr living expenses as NYC have much higher base pay than comparable IB or finance jobs in NYC. Tech firms in SFO not only have higher base but more of the incentive is tied to stock options unlike IB or hedge fund jobs in NYC…Look I got a fat ass bonus last year that was way more than 100% of my base but my CASH bonus is taxed at 54%. I’d rather have majority of my pay in base and some in stock options because net I am better off that way…
Look, there is a reason why people from top MBAs prefer mgmt consulting and tech firms to traditional IB…Not just “BS perks” like you said…not everyone from the top schools are as naive and as simple as you think…they care about money…
Look at it this way, the MSFT corp strat job i got dinged…I was competing against other IB or buyside analysts. To them and to me, it is better to make 220k in Seattle than make 350 in NYC because net net pay will be similar ALSO you got lower cost of living which would make MSFT job more attractive AND you got as you call “stupid perks” such as free shuttle to and from work, 6 in-campus restaurants, 9-5 job, etc…
I was speaking recently to a friend who just graduated from HBS MBA. In high school, he wanted to be an ibanker. When he talked about opportunities after graduation, IB wasn’t even one he was considering. To me, it sounded like PE was the financial route people like him consider. Infinity’s posts seem pretty similar to what he was saying.