Who Earns More: A Chartered Accountant vs. An Investment Banker?

The earnings of a chartered accountant (CA) versus an investment banker can vary significantly based on several factors, including geographic location, level of experience, the size of the firm, and the specific role.

Entry-Level Salaries

At the entry level, both professions begin with different but notable differences in base salaries:

Chartered Accountant (CA): Newly qualified CAs might earn between $50,000 to $70,000 annually. Investment Banker: Starting salaries for investment banking analysts often range from $80,000 to $120,000 with significant bonuses that can double their total compensation.

Mid-Level Salaries

With a few years of experience, both roles can offer substantial income:

Chartered Accountant (CA): Salaries can range from $70,000 to $100,000. Investment Banker: Associates can earn between $120,000 to $200,000, including bonuses.

Senior-Level Salaries

In senior positions, the earnings can differ significantly, especially in large firms or specialized industries:

Chartered Accountant (CA): Experienced CAs in senior positions can earn from $100,000 to $150,000 or more. Investment Banker: Senior investment bankers can earn from $200,000 to $500,000 or more, particularly when bonuses are factored in.

Conclusion

Overall, investment bankers typically earn more than chartered accountants, especially at the entry and mid-levels, due to the high-pressure and high-stakes nature of their work. However, CAs can achieve competitive salaries as they advance in their careers.

Your earnings will also depend on the quality of knowledge you possess. It’s not solely a profession that decides your earning potential; it’s your skills and knowledge in a profession that can significantly impact your salary.

Many times, a CA himself can be an Investment Banker. However, if you’re comparing an auditor with an investment banker, the general trend is that after 5 years of career progress, a successful investment banker would earn much more than an auditor.

The simple reason is that the perks of an investment banker usually include commission on closing deals, which might be much higher than the salary of an auditor.

Note: The above is a general scenario. Exceptions are always there!

-Himanshu Jain