Who Earns More: Investment Bankers Or Doctors?

Investment banking is an extremely lucrative sector, with some senior bankers earning millions of dollars per year. However, it is a challenging and demanding career path, with bankers often working over 100 hours per week. While doctors may start off earning less, with a junior doctor in the UK earning a basic salary of £20,741, they can eventually earn a lot more, especially if they go into private practice. So, who earns more, investment bankers or doctors? It depends on the individual's level of seniority and specialisation, but it seems that both careers can be financially rewarding, with the potential to earn a lot of money.

Doctors have a higher average salary than bankers

The typical salary for equities sales, trading, and research jobs in a bulge-bracket investment bank is around $500,000. M&A professionals can earn much higher. However, the average starting base salary for an investment banker is between $75,000 and $96,000 per year.

In contrast, a doctor in the US in the most junior post (foundation year 1) would earn a basic salary of £20,741 or $25,000. This would increase to £25,882 or $31,000 in the second year (foundation year 2). A doctor in specialist training could earn from £29,000 or $35,000 to £44,000 or $53,000. In addition, a doctor in training would be paid a banding supplement determined by the amount of overtime worked. A typical doctor, five years after graduating from medical school, could be earning approximately £48,000 or $58,000.

Furthermore, the road to becoming an investment banker is shorter than that of a doctor. To become a doctor, one must work hard in sixth form, getting top grades and gaining work experience. It is also a demanding subject with a high dropout rate. On the other hand, investment bankers typically have degrees in economics, business, mathematics, or finance. While investment banking is challenging and demanding, it is not as difficult to get into as medicine.

In summary, doctors have a higher average salary than investment bankers. While investment banking offers high earnings, doctors earn more, especially in the long run. The path to becoming a doctor is longer and more demanding, but it leads to higher earnings and greater job security.

Doctors' salaries can reach up to $180,000

Doctors' salaries can vary depending on their specialty, location, and years of experience. While the average physician in the United States earns around $350,000 to $368,000 per year, salaries can range from $200,000 for adolescent medicine physicians to over $1 million for neurosurgeons.

According to a physician salary database, doctors working in specific specialties tend to earn higher salaries. For example, neurosurgeons have an average salary of $1,075,000, while orthopedic surgeons earn around $745,000, and plastic and reconstructive surgeons make approximately $717,000 per year. Other high-paying specialties include interventional radiology, gastroenterology, vascular surgery, and radiation oncology, with average salaries ranging from $593,000 to $635,000.

On the lower end of the spectrum, doctors in primary care and pediatric specialties tend to earn lower salaries. Adolescent medicine physicians have an average salary of $200,000, while pediatric endocrinologists make around $203,000 per year. Pediatric hospitalists and pediatric nephrologists earn slightly more, with average salaries of $225,000 and $227,000, respectively.

It's worth noting that these salary figures can vary based on several factors, including practice environment, state, gender, and hours worked. For example, doctors working in government-related positions or academic hospitals tend to earn lower salaries, while those in non-private equity-backed group private practices earn higher salaries. Additionally, male doctors earn higher salaries than female doctors, with a 31% difference in average salary between the two groups.

While doctors' salaries can reach up to and even exceed $1 million, it's important to consider the years of education, training, and experience required to attain these higher-paying positions.

Bankers' salaries can reach over a million dollars

While the majority of investment bankers will not see their salaries reach over a million dollars, it is certainly possible for some to attain this level of compensation. The highest-paid investment bankers are typically those working for large Wall Street firms such as Goldman Sachs, JP Morgan, and Morgan Stanley. These firms tend to offer the highest base salaries and bonuses across most levels.

At the director and managing director levels, there can be a difference of over a million dollars in compensation between top-tier and mid-market banks. Directors and managing directors at bulge-bracket investment banks can make over a million dollars, and sometimes even tens of millions of dollars, per year.

Managing directors at top banks have average total compensation packages ranging from $450,000 to $800,000, with bonuses making up 60-80% of that figure. Base salaries for managing directors can range from $200,000 to $300,000, while bonuses can be as high as $2 million or more for top performers.

It is worth noting that bonuses make up a significant portion of an investment banker's total compensation and are largely influenced by individual performance and bank profits. Bonuses are also tied to the number and size of deals completed, with bankers who close more and larger deals tending to earn higher bonuses.

In addition to base salaries and bonuses, other components of an investment banker's compensation package may include stub bonuses, signing bonuses, and employee benefits such as 401(k) plans, health insurance, and vacation days.

While it is possible for investment bankers to earn over a million dollars, it is important to consider the demanding nature of the job. Investment banking is a high-pressure and complex career that often requires long hours, with an average workweek of 80-100 hours.

Doctors have a higher starting salary than bankers

The road to becoming a doctor is more challenging and demanding than becoming an investment banker. Aspiring doctors need to work hard in sixth form to get top grades and gain relevant work experience. Getting into medical school is highly competitive, and the course of study is rigorous, with a high dropout rate. It typically takes 5-6 years to complete a medical degree, and new doctors often start their careers with a significant amount of debt.

In contrast, becoming an investment banker is more accessible. While a college degree in finance or economics is a typical starting point, investment banks also hire graduates from other subject areas. Summer internships during university can provide a foot in the door, and it is possible to earn a high salary straight out of university. However, investment banking is known for its long and stressful hours, with analysts and associates often working over 100 hours per week.

While investment banking can be lucrative, with directors and managing directors earning over a million dollars per year, it is important to consider the trade-offs. The intense work demands of investment banking can leave little time for a personal life, and the high-pressure environment may take a toll on one's emotional well-being. Ultimately, the decision between pursuing a career in medicine or investment banking depends on various factors, including one's academic background, work preferences, and financial goals.

Bankers work fewer years before earning a high salary

While investment banking is an extremely lucrative sector, bankers often work long hours. The typical salary for equities sales, trading, and research jobs in a bulge bracket investment bank is around $500,000, and M&A professionals can earn much higher. Directors, principals, partners, and managing directors at these banks can make over a million dollars, and sometimes even tens of millions, per year.

However, the long hours that investment bankers work often do not translate into high hourly wages. With most analysts and associates working over 100 hours per week, their hourly wages can range anywhere between $25-$35 per hour.

The long hours worked by investment bankers are due to the nature of the job. Investment banks sell a service, and so bankers are often on-call for most days and late nights. Last-minute work is also common, as live investment banking deals can bring in a number of different unpredictable, last-minute adjustments.

The number of hours worked per week by investment bankers varies between 60-80 hours, with some weeks pushing bankers to 100+ hours. The median number of hours worked is around 70 hours per week, with most weeks spent in the 60 to 80-hour range. It is uncommon for an analyst to hit the 100-hour mark, with this only happening occasionally when an analyst is working on multiple live deals or poorly aligned international projects.

The long hours also depend on the type of bank and sector. Elite boutique investment banks like Lazard, Evercore, and Centerview have smaller teams, so analysts are pushed to work on the higher end of the scale at 80-90 hours per week. In contrast, smaller regional boutique banks like SunTrust, Piper Jaffray, and Raymond James offer better work hours, with former analysts at these banks reporting work weeks closer to 50-70 hours per week.

The long hours also depend on the role. Analysts work 60-80+ hours per week, associates work 55-80 hours, vice presidents work 55-70 hours, and managing directors work 50-60 hours.

The long hours also depend on whether the banker is a first-year or second-year analyst. Some teams push a "'pay your dues' culture, where first-year analysts are given a heavier workload than second-year analysts. However, other firms operate in the opposite way, where second-year analysts are given more work as they are better trained and can be trusted with critical work.

Overall, bankers work long hours, but these hours vary depending on the individual, team, role, sector, and type of bank.

Frequently asked questions