Investment Banker Severance Pay: 2026 Guide
Investment Bankers typically receive 3-8 weeks per year of service. Calculate your estimated package below.
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Typical Investment Banker Severance Range
Investment bankers, particularly at VP level and above, typically receive substantial severance packages reflecting their high compensation and relationship-driven roles. Garden leave is common in investment banking, and deferred compensation vesting is a critical negotiation point. Total packages at senior levels can reach 6-12+ months of base salary plus bonus considerations.
Based on $175,000 average salary, 5 years of service
How Investment Banker Compares to Finance & Banking Average
Top Companies Hiring Investment Bankers
Severance packages at major employers for investment banker roles:
| Company | Severance Formula | Rating |
|---|---|---|
| Goldman Sachs | Typically 1-2 months per year of service; MDs get more | Generous |
| JPMorgan Chase | 2 weeks per year of service (minimum 4 weeks, maximum 26 weeks) | Standard |
| Morgan Stanley | 2 weeks per year (similar to JPMorgan structure) | Standard |
| Bank of America | 2 weeks per year of service + transition support | Standard |
| Citigroup | Based on tenure and level; typically 2-6 months | Standard |
Investment Banker Severance After Tax by State
Top states for investment banker roles. Same package, different take-home.
| State | State Tax | Total Tax | After-Tax (on $67,308) |
|---|---|---|---|
| New York | 10.9% | 32.9% | $45,163 |
| Connecticut | 7.0% | 29.0% | $47,795 |
| New Jersey | 10.8% | 32.8% | $45,264 |
| Illinois | 5.0% | 27.0% | $49,168 |
| California | 12.3% | 34.3% | $44,221 |
| Texas | 0.0% | 22.0% | $52,500 |
Negotiating Investment Banker Severance
Role-specific strategies for investment banker severance negotiation:
- ✓Garden leave is your strongest card — push for paid leave rather than immediate termination
- ✓Negotiate for accelerated deferred compensation vesting
- ✓Ask for client relationship portability (critical for your next role)
- ✓Push for prorated bonus based on deal pipeline contributions
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Investment Banker Severance FAQ
How much severance does a investment banker typically get?▼
Investment Bankers typically receive 3-8 weeks of pay per year of service. With an average salary of $175,000, a investment banker with 5 years of service would typically receive $67,308 (before tax).
Can a investment banker negotiate their severance?▼
Absolutely. Investment Banker severance packages are almost always negotiable. An employment lawyer experienced in finance & banking can typically negotiate 2-5x the initial offer. Focus on role-specific benefits like garden leave is your strongest card — push for paid leave rather than immediate termination.
What should a investment banker prioritize in severance?▼
Beyond cash, investment bankers should prioritize: extended health coverage (COBRA costs $600-2,000/month), equity/stock acceleration, outplacement services, and a positive written reference. For finance & banking roles specifically, also focus on professional certification maintenance and industry-specific benefits.
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