I knew people like that. First of all, the first few years are a grinding machine and it pays shit (relatively speaking). You spend literally all your waking hours at the bank, w-e included and even when you have some time off, the bank restrict what type of activities you are allowed to do. Every year, the bank unceremoniously fired the bulk of your team. Anything is fair game to get the upper hand. There is no such thing as a friend. Even if you are in a team, there is no such thing as team work or team mate.
If you survive 4 years, then you get into the really well paid positions with 300K bonus a year being common. I have seen 2 scenario unfold: either the 4 previous completely ruin your value system, so you are either a complete asshole or addicted to a life of excess that keeps you in the system. A few will get promoted to hire levels yet and enter a weird world of mostly networking.
In rare circumstances, generally the one lucky to have a good and sane social circle before going into the grinder, you retire at 30 with several millions in your bank account.
At my bank, and we had a particularly bad group but it was successful (and this is mid level not a top tier), 2 kids out of 30 finished the two year "program". No one ever tells you the employment contract is for 2 years out of undergrad, and maybe you get "invited" for a third year, and maybe you get "promoted" from analyst to associate to compete with all the post MBAs who want to beat you out.
And honestly the wash out was a mix of things: quit, got fired, suffered too much took a random job, suffered too much held out and got an amazing job....etc.
I believe the ratio is better at other banks and also better in current times.
I had drinks with my old boss a few months ago and I warned him he would kill a kid one of these days. His answer was "oh culture is fixed, we give one Saturday off a month now. Morale is much better".
Granted this is a tiny skewed example. But your message is spot on.
I think this is an extreme view that isn’t entirely represented. I’ve had friends that worked pretty much 7am-7pm tying to get to that huge bonus, yes, but the majority of the team didn’t get fired. They did, however mostly all transition to other roles that are not as well known for lavish bonuses, but they do do very well. There are many support roles, client dealing roles, project management type roles, that are less ruthless than a front office buy side role. And less well compensated too, I’m sure. But that is where the majority end up at these banks.
You're talking about banking. I think the context of the original question is actually the buy side, because that's the comment you're replying to.
I have not seen any of the typical sell side grind common to investment banking among hedge funds. New grads hired to reputable hedge funds typically work comparable hours to their friends who work at Google/Facebook. They might earn 20 - 100% more though.
The story varies enormously by kind of institution and by specialism.
Being an associate in mergers and acquisitions at an investment bank is famously gruelling - long hours, terrible work culture - and as far as i can tell pretty menial, low-skill stuff most of the time.
Being a quant at a hedge fund can be pretty fun.
My general impression is:
1. Smaller companies are better, on all axes, than bigger ones
2. Trader/associate/etc > developer in all of hours, stress, and pay
3. Front office > back office in all of hours, stress, and pay
If you survive 4 years, then you get into the really well paid positions with 300K bonus a year being common. I have seen 2 scenario unfold: either the 4 previous completely ruin your value system, so you are either a complete asshole or addicted to a life of excess that keeps you in the system. A few will get promoted to hire levels yet and enter a weird world of mostly networking.
In rare circumstances, generally the one lucky to have a good and sane social circle before going into the grinder, you retire at 30 with several millions in your bank account.