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Every Level of a Goldman Sachs Banker
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Aspiring investment bankers, finance students, and professionals curious about the career path and realities of working at a top-tier firm like Goldman Sachs.
TL;DR
This video breaks down the seven levels of a Goldman Sachs banker, detailing the progression from summer analyst to executive director. It highlights the demanding work, compensation, and unspoken costs associated with each role, emphasizing the intense competition and the gradual shift from execution to origination.
Key Takeaways
- Goldman Sachs' extremely low acceptance rate highlights the intense competition and the high bar set for entry into investment banking roles.
- The compensation structure at Goldman Sachs, especially at junior levels, results in a very low effective hourly wage when considering the extensive working hours.
- The career progression within Goldman Sachs is characterized by increasing responsibility, from assembling pitchbooks to managing teams and originating deals.
- Uncertainty, particularly regarding return offers and performance rankings, is a deliberate mechanism used by the firm to drive performance and engagement.
- The 'Sunday feeling' of dread about the upcoming work week persists across multiple levels, indicating the demanding nature of the job.
- Moving up the ladder involves a shift from execution to origination, requiring the development of strong client relationships and the ability to generate new business.
- The distinction between executing deals and originating them is a critical barrier to advancement, particularly for Vice Presidents aiming for Managing Director roles.
- Goldman Sachs' Executive Director level serves as a final filter, assessing an individual's ability to originate business at scale before promotion to Managing Director.
In This Video
- 00:00Goldman Sachs Hiring Machine
Goldman Sachs receives 300,000 applications, hiring only 2,500. This low acceptance rate highlights the firm's competitive nature.
- 00:38Level One: Summer Analyst
The summer analyst role is highly competitive, with less than 1% acceptance. Compensation is $21,000 gross for 10 weeks.
- 02:27Level Two: Analyst
As an analyst, base salary is $110,000, with total compensation between $150-190k. Work involves pitchbooks and models.
- 04:16Level Three: Associate
Associates earn $175,000 base, with total compensation around $275-320k. They manage analysts and review work.
- 06:20Level Four: Vice President
VPs earn $250,000 base, with total compensation reaching $450-600k. They run entire deals and manage teams.
- 08:18Level Five: Executive Director
This unique Goldman role is the final filter before MD. Compensation ranges from $750k to $1.1M.
Questions & Answers
What is the rejection rate for Goldman Sachs applicants?
Goldman Sachs received 300,000 applications and hired 2,500 people, indicating a very low acceptance rate, with fewer than 1% accepted into the summer analyst program.
What is the compensation for a summer analyst at Goldman Sachs?
Summer analysts receive $110,000 annualized, which equates to about $21,000 gross for the 10-week period, or approximately $12,500 after taxes.
What are the typical work hours for an investment banking analyst?
Investment banking analysts typically work between 80 and 90 hours per week, often leading to very late nights and early mornings.
How does Goldman Sachs communicate promotions to associates?
Promotions are often communicated indirectly, sometimes through overheard conversations or subtle hints, rather than direct announcements.
What is the role of a Vice President at Goldman Sachs?
Vice Presidents are responsible for running entire deals, managing teams of associates and analysts, and retaining client relationships between mandates.
What is the Executive Director level at Goldman Sachs?
The Executive Director role, unique to Goldman Sachs, is the final filter before Managing Director, focusing on originating business at scale.
Key Terms
- HireVue — A video interviewing platform used by companies like Goldman Sachs as an initial screening tool for applicants.
- Pitchbook — A presentation document used in investment banking to argue why a company should hire the bank for a transaction.
- Stub Year Cycle — An accounting period for first-year analysts where compensation is calculated from their start date to the end of the calendar year.
- Bulge Bracket Banks — Refers to the largest and most prestigious global investment banks, known for their significant market share and deal volume.