Corporate executive officers have long been known to receive excessive amounts of monetary compensation in their positions of power, but where else are salary figures rampantly out of control? John Rolfe and Peter Troobe’s insightful novel, Monkey Business, provides an inside’s look to the business practices and lives of employees within investment banks. These firms are known for the massive amounts of money they pay their employees. First year analysts, the entry-level investment banking position, commonly receive upwards of 120,000 dollars in full compensation packages. It is common knowledge that people feel Wall Street is overpaid, but Monkey Business proves why such monetary payment is appropriate.
Investment banks specialize in connecting companies in search for capital with numerous wealthy investors all across the world. They do this through analyzing the cash flows, projects, and operations of a company, which culminates into the development of a pitch book. These “pitch books” are the bread and butter of investment banks. Analysts will make hundreds of elaborate and lengthy pitch books on the evaluation of companies to give to associates and upper management only to have a handful actually presented to investors. Because many things in the investment world are time sensitive, this consistently leads to “all-nighters” at the office in addition to the already grueling 100 to 120-hour workweeks that flow into the weekend.
Once the investment bank decides that they have a company worth pitching to investors, they have a group employees go on the “road show.” This includes traveling to two cities a day that can be hundreds of miles apart. The road show can last for a couple weeks, but is essential for distributing the investment opportunity that the firm is promoting to wealthy individuals or companies. Once again, however, the low-level bank employees are forced on these treacherous travel schedules that span vastly different time zones with little extravagance or rest.
The results produced from extensive travels allow for investment banks to generate large revenues when providing initial public offerings or aiding in seasoned equity offerings. In return, employees are handsomely rewarded for their diligence. However, their costs include possessing social lives outside of work, the possibility to raise a family, and simple freedoms and luxuries that the typical employee enjoys. This is a result of being constantly at risk of receiving a call, no matter the time or day, that requires for them to come to the office to complete work on a project.
Considering this form of activity is consistent even in upper levels of management, it should not be surprising that investment banks offer such high salaries. While people may complain, they remain an essential middleman in providing financial support companies, something that affects all public firms and markets. Monkey Business notes that for investment banks to create interest in such grueling workloads, they must provide lucrative compensation packages for people to feel as though the ends justify means. So while critics may feel as though these extravagant salaries are unwarranted, it allows for investment banks to remain operational with willing employees that keep the gears of the economy functioning smoothly.
