INQUIRY Career Profile / Prospect for Success Paper #2 Submitted to Dr. Daryl L. Kerr VA Department of Management Belk College of Business UNC Charlotte Submitted by Nikita Mikhailov J BUSN 1101-090 November 23, 2015) wt spi) Paper #2 DS 1-2 sme @ 4 a In their role as facilitators of growth, investment bankers are among the most powerful and essential players in the moder economy. Using their vast networks of connections they can gather funds to fuel development and progress and provide financial guidance to private industries to make sure that ideas have the ;conomie backing to become reality. My goal is to become an it estmet banker because | thrive in high stakes, competitive, and dynamic situations and believe that it would best allow me to utilize analytical and interper sonal skills every day. ‘The fundamental responsibility of an investment banker is to fulfill the financial needs of a business and to ensure that it tums a profit, In carrying out this role, however, duties are divided according to one’s position within a ch: of command. My immediate goal is to become an entry level analyst, Analysts conduct independent research on client companies and on their industries in order to generate financial models. Using Excel, this information is translated into a digestible write up “the pitch book” desig 1ed to help a client understand what the bank might be able to help them achieve (Investment Banking). As an investment banker gains experience, moving from analyst to ) - associate, to vice president and finally managing director, they typically become more inv: yg 7 [7 interpersonal interaction with clients and begin to exercise more supervisory functions, overseeing teams of analysts and associates in their duties. This growth in responsibility is often accompanied by a substantial increase in both domestic and international travel and working hours. Investment banking at every level is defined by high stress, long work hours, tight deadlines, and pressure to produce results. This high-stress, results-oriented environment is known to take a . wow physical and psychological toll on workers, Entry level analysts work an average of 100 hotir@a = week. The dense schedule of an associate at Goldman Sachs reveals that his schedule was = characterized by early mornings, late nights, constant phone calls, and eating on the go (Vault, 2004, p.167). Investment bankers are sleep deprived and under constant pressure. As a result, the career has/ TRESTNG - Wrgesr very high rates of attrition and suicide. Conversely, for some individuals, the high pressure, precision-oriented caree a welcome challenge, allowing for dynamic and stimulating workdays. The key qualification for an nvestment banker is to be able to think analytically. Typically sechelor's degree in business and, later, a master’s degree in business J“ administration, The most common specializations are in finance and accounting, but bachelor’s this is achieved through a bs degrees in mathematics are also not uncommon, In order to achieve the position of associate oF above, an MBA is required. Banking firms reward those who are able to carty over academic ta (© practical applications with higher pay and more opportunities for advancement. Investment banking, moreover, ighly values on the job training in conjunction with academic training. Many MBA programs, for example, prefer to admit students who have already have several years experience in the business world. ‘There is significant room for career advancement investment banking, Nearly all analysts Vv 7 . ; are promoted to vice president within three years, although promotions are highly dependent on external economic factors, individual performance, and success of the firm itself. Beyond these basic levels of seniority, there is much room for bankers to obtain positions in management, Remuneration for investment bankers is relatively high compared to other fields. In major cities the top “bulge typically comprises a base salary and performance-based bonuses. A first year analyst at Goldman Sachs, for example, will early roughly $50,000 in salary and $30,000 in bonuses. Associates frequently make in excess of $100,000 per annum, while ‘managing directors routinely earn compensation in the millions, depending on performance. vv Career outlooks in investment banking have changed significantly since the recession of 2008. The financial crisis caused serious restructuring, increased regulation, and political changes. Many banks in the United States experienced massive layoTs, a shift from investment to commercial banking, and the collapse of major firms, a Brothers, Increased regulation ofproprietary trading has led to cutback: profits for employees, Recent economic reports 96 suggesting that we are now beginning to overcome the effects of the recession, however, and investment banks have been u: g restructuring as an opportunity to improve. Banks are restructuring their organization and allocation of resources and tasks internally, While financial returns for individual employees have been tempered since 2008, meaning that some talent has sought ‘opportunities elsewhere, this stigma against investment banking means that finding positions is less competitive, and firms are aggressively secking out skilled employees. As such, Syme be entering a period of opportunity for prospective bankers. This fing nto the state of investment banking in 2015 has illuminated both potential pitfalls and opportunities. While banking is stressful, competi e, and intensive, on one hand, it is / also dynamic, stimulating, and rewards hard work and skill. Despite the risks, I am still enthusiastic GLYT about this career path. | intend to make the most of my undergraduate work to improve m: A in mathematics, obtain an internship at Bank of America, and learn from the network of UNCC alumni in order to reach this goal, all the while being sensitive to the need for adaptation according to new informat nn and new economic conditions. Investment banking is undergoing major reform at the moment, and I want to be an agent of change.Refe Sf “Choudhey, M.. & Landuyt, G. (2010), ‘The future of finance: A new model for ba investment, Hoboken, NJ: Wiley, king and Coppola, F. Is investment banking dead?, Retrieved from hupz/Avww forbes.cony/sites/fiameescoppokv/2014/05/0%/is-invesingnt-banking-dead? Klatk, C, 2015, June 26), Recent college graduates r from hupsiicollege usatoday.conv/2015/06) banking-finanee/ jceting carcers in banking, finance, Retrieved scling-careers= Kurt, D. (2014, November 11), What's the role of an investment bank?. Retrieved from hupdivww.investopedia.con jesinvesting/ LLL LLA/whats-role-investment-bank.asp Investment Banking. Careers-in-Business. Retrieved from http://www care s-in-business.com Money Week (Producer). (2011), What investment banks actually do. London, England, Retrieved from htip://moncyweek.com/videos/beginners-guide-to-investment-banks-10316/ Morrison, A. D., & Wilhelm, W, J. (2007). Investment of banking: Past, present, and future. Journal of Applied Corporate Finance, 141), 42-54, doi:10.1 111/).1745-6622.2007.00124.x TABB group brings out ‘one touch, one world: The future of investment banking’. (2013). Professional Services Close ~ Up. Retrieved from hup:/search.proquest.com/doeview!1427393 151 ragcountid=14605 Vault (Firm). (2004). The Vault MBA career bible. New York, NY: Vault Inc + Yale University (Producer). (2010, April 14). Lecture 19 -Investment Banks [Video file]. New Haven, CT. Retrieved from hitpi//oye. i 252-1 Ilecture-19 yt