Investment Banking Career Path: Vice Presidents (VPs) and Senior Vice President

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Investment Banking Career Path: Vice Presidents (VPs)

Understanding the Role of a Vice President (VP) in Investment Banking

The Vice President (VP) role in investment banking is pivotal for deal execution. Known as the ‘Quarterback’ of deals, VPs ensure smooth operation and coordination between Senior and Junior Bankers.




Alternate Title: Director

In some investment banks, the VP role may be referred to as 'Director.' Despite the title difference, the responsibilities remain consistent across institutions.

Key Responsibilities of a VP

  • Deal Execution: VPs lead the execution of deals, ensuring all aspects of a transaction are managed effectively.
  • Client Interaction: VPs have a significant client-facing role. They participate in pitch presentations and maintain client relationships throughout the deal process.
  • Team Coordination: Acting as the 'buffer' between Senior and Junior Bankers, VPs support Senior Bankers’ needs while ensuring Junior Bankers execute tasks cohesively.
  • Compensation for VPs

At top investment banks, VPs earn between $400,000 and $700,000 per year. This high compensation reflects the crucial role they play in deal-making and client management.

Path to Senior Vice President


After three to four years in the VP role, individuals typically advance to the position of Senior Vice President (SVP). This promotion marks a transition to a higher level of responsibility and client interaction.

Investment Banking Career Path: Senior Vice Presidents (SVPs)
The Role of a Senior Vice President (SVP) in Investment Banking

Senior Vice Presidents, sometimes called 'Executive Directors' at certain banks, are essentially Managing Directors (MDs) in training. They have proven their expertise in deal execution and are now focused on bringing in new business.

Key Responsibilities of an SVP

Deal Execution and Business Development: SVPs play a hybrid role. They support deal execution while also working to generate new business opportunities, often in underserved sectors.
Client Acquisition: A major part of the SVP’s role is proving their ability to attract and secure new clients. This is crucial for their potential promotion to MD.
Compensation for SVPs

SVPs at top-tier banks can earn between $700,000 and $1 million per year. This substantial compensation reflects their dual role in deal execution and business development.

Promotion to Managing Director

Promotion to Managing Director is not guaranteed for all SVPs. Those who succeed typically do so within 2-3 years, marking a significant milestone in their investment banking career.

Disclaimer
This overview provides a general understanding of the roles and responsibilities of Vice Presidents and Senior Vice Presidents in investment banking. Individual career paths and experiences may vary based on personal performance, specific bank practices, and market conditions. For personalized guidance and advice, consulting with industry professionals and career advisors is recommended.


Understanding these roles helps aspiring bankers prepare for the demands and opportunities that come with advancing their careers in the dynamic field of investment banking.

Investment Banking Career Path: Associates






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