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Wall $treet lures grads
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March 14, 1997: 8:31 p.m. ET
Investment bank programs are intense, but can mean big bucks
From Correspondent Donald Van de Mark
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NEW YORK (CNNfn) -- Each year, thousands of recent college graduates make the trip from the hallowed halls of universities to the corporate offices of Wall Street, flooding into the two-year investment banking analyst programs.
Designed to give college students a first taste of the business world, the analyst programs provide some of the hottest jobs in America. Competition for the positions is intense, with tens of thousands of students applying each year.
The oldest program was started in the early 1970s by Morgan Stanley.
"It grew out of a desire of the business schools, principally Harvard and Stanford, to get real-time work experience for people prior to the time they got to graduate school," said Rob Jones, a managing director at the venerable investment bank.
Today, more than 50 investment banks have analyst programs, recruiting more than 3,000 college seniors a year. For the students, it is a chance to taste Wall Street. For the firms, it is a chance to tap the very best of the best among business students.
"It is an opportunity to experience the business world right out of college and to take on a level of responsibility that I think very few 21-year-olds have," said Eleni Henkel, a Morgan Stanley principal.
Add to that great opportunity, a great salary. A typical analyst starts out at $35,000 a year. With a bonus and fringe benefits, the total cash compensation soars to $55,000, the highest salary offered by any industry for recent grads.
Eileen Kohan, career services director at Columbia University, said the motivating factor for many students is a hefty paycheck and bonus. That is not to suggest they are greedy. Rather, the typical college graduate now leaves campus with a massive personal debt from student loans. (130K WAV) or (130K AIFF)
But big pay has its price: long hours and intense work.
Just listen to Andrew Scott, a senior graduating from Columbia. "Everybody that you interview with looks at you and asks you, 'Do you know what you are getting yourself into? Do you know what the hours are like?' Yes, I've heard and I'm told. Do I have any idea what it is like to work a hundred hours a week? No, of course not," he said.
Even so, professionals warn their prospective colleagues that money and prestige requires personal sacrifice. "The job is very intense," said Nicole Sheehy, an analyst at Morgan Stanley. "It takes up most of your time and it is difficult pursue outside hobbies. You have to really, really want to do it."
So, is 100 hours a week in an office worth it? Most say yes, adding that the analyst programs are stepping stones to greener pastures.
At Morgan Stanley, 20 of the partners were once analysts. And partners make millions.
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Morgan Stanley
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