Elite banking VPs in their late 20s may find themselves earning $740k
If you're an associate somewhere like Bank of America, your bonus may not be the best this year. But if you're a vice president (VP) at somewhere like PJT, your reward may feel ample indeed.
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Meridith Dennes, a former banker turned recruiter of bankers in New York City, says vice presidents have been allocated exceptional bonuses for 2025. She says elite first year VPs have had bonuses hiked 34% to earn median total compensation (bonus plus salary) of $500k (£365k), Elite third year VPs at bulge bracket banks are now on median total compensation of $740k (£541k), says Dennes.
VPs are typically in their late 20s.
Not every is an elite VP, though. Mediocre VPs are less well rewarded. If you're not a VP at a big US bank or top boutique, but you work for the middle market, your pay will be less. Nor will you be a desired employee. "We're seeing more large, complex transactions - $5 billion-plus deals, AI-related acquisitions, transformational mergers," says Dennes. "Banks need VPs who've already operated at that scale." Midmarket VPs are therefore out of favour, however hard they grind.
Tom Ragland, CEO of recruitment firm Harrison Rush Group, confirms that VPs are banks' most sought after people in 2026. "Banks are paying up for execution support at the VP level. Associates have not had the opportunity to work on many deals," he observes. Banks need people who are ready to run; deals are expected to roar back this year.
It's not just about avoiding the midmarket. The VPs who are at a premium now are a particular breed. Good is longer measured simply in deal count. "It's deal quality and contribution level," says Dennes. The preference is for VPs who have been "meaningfully involved" in deals and who have interacted directly with C-suite executives.
VPs who have this kind of experience can switch between boutiques and big banks to maximize pay. Dennes says elite boutiques pay 20-25% more than banks in total compensation to their VP 1s and 2s. However, banks pay more than boutiques to their VP 3s.
The new pathway to earnings maximisation may therefore be to start with a bank, leave for a boutique, and then return where you came from. This looks different to last year, when a salary and bonus survey from Instagram account Litquidity found that VP3 pay was highest ($750k) in elite boutiques and $75k less in banks.
On the odd occasion, though, VP3s may still earn more in boutiques. Ragland says the highest pay he's seen at that level this year was $800k and that it wasn't in a bank.
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