You’ve made it! Managing directors (MDs) are the upper echelons of the banking hierarchy.
They typically make the most money, have the biggest offices, and command the most respect. MDs are the people who deal directly with clients and originate (bring in) business.
As with any pyramid structure, very few people who started out as analysts will make it this far. At one large US bank, only 6-8% of directors are promoted to managing director each year. At Goldman Sachs, there are little more than 1,000 managing directors for 20,000 employees.
To make MD, Richard Davies, executive director of HR at Morgan Stanley says: “It’s about individual performance, revenue generated, and client service. If you progress smoothly, you can become an MD by the time you’re in your early 30s.”
Exception to the rule
Although this hierarchical structure exists across most divisions in banks, it’s less noticeable in the sales and trading division. Sales people and traders work on their own to make money, so if you’re an exceptionally talented VP on the trading desk, there is every chance you could earn more than an MD…
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