Originally Posted by Unregistered

5th year PE investments. IB guys who didn’t jump over also make the same range (400+/500k) but they have a much higher base but lower bonus.

Reason is competition in the industry driving salaries up and operating leverage in being able to pay large amounts. Same manpower needed to invest or transact $500m versus $5b but the slice of profits are now 10x and split by the same number of people.

Other industries where this kind of pay happens is in SWE. Same dynamic. High competition, and 1 good coder’s work can generate 10x the output if he gets access to the computing power and is efficient.

If productivity grows, field is fierce, pay goes up.