Why Investment Bankers Work 70-100 Hour Weeks

Investment bankers work 70-100 hours per week primarily because of client demands, a deeply ingrained culture of overwork, and the need to outcompete peers in a field where the work itself is not highly differentiated. These long hours are most intense for junior bankers (analysts and associates) and during active deal phases, but they persist across the industry due to structural and cultural factors that are unlikely to change soon.

What Investment Bankers Actually Do

Investment bankers act as intermediaries between companies and investors, providing two main services: capital raising (issuing debt or equity) and advisory services (such as mergers and acquisitions). The day-to-day work of junior bankers is often less glamorous than the high-stakes image suggests. A significant portion of their time is spent on menial, repetitive tasks: building pitch books in PowerPoint, formatting fonts and colors, updating financial models in Excel, and conducting research. The math involved is rarely complex; as one former banker notes, "the actual math required for investment banking is laughably simple, and you almost never go beyond basic arithmetics." (Kaveh)

Despite the simplicity of individual tasks, the volume of work is immense. Analysts and associates are responsible for producing client-ready materials under tight deadlines, often juggling multiple projects simultaneously. The work is not intellectually difficult, but it is time-consuming and detail-oriented, leaving little room for error.

The Real Reasons for the Long Hours

The traditional explanation for investment banking hours points to client demands and the complexity of deals. While these factors play a role, they do not fully explain why bankers consistently work 70-100 hours a week. The deeper reasons are cultural and structural.

1. Lack of Differentiation

Because the work itself is not highly complex or unique, one of the main ways junior bankers can stand out is by working more hours than their peers. In a competitive environment where everyone is smart and capable, sheer endurance becomes a differentiator. This creates a self-reinforcing cycle: if one analyst stays until midnight, others feel pressured to stay until 1 a.m. to demonstrate greater commitment. (Kaveh)

2. Fixed Costs vs. Variable Revenue

The compensation structure in investment banking creates a conflict of interest that drives overwork. Junior bankers (analysts and associates) are paid a fixed salary plus a discretionary bonus that can be a large portion of total compensation. Senior bankers (directors and managing directors), however, earn bonuses tied directly to the revenue they generate from deals. This means senior bankers have a strong incentive to pitch as many deals as possible, even if the probability of closing is low. The junior bankers bear the cost of this over-pitching, as they are the ones who must produce the pitch books and models for every potential deal. (Kaveh)

3. Culture of Overwork

Investment banking has a long-standing culture that equates long hours with dedication and commitment. Senior bankers, who themselves worked brutal hours as juniors, often expect the same from the next generation. This "hazing" mentality is reinforced by the fact that banking jobs are highly desirable; there is always a line of eager candidates willing to work 100-hour weeks for the prestige and pay. As a result, banks have little incentive to change. (Mergers & Inquisitions)

Client demands do contribute to the hours, but they are not the sole driver. Clients pay millions of dollars in fees and expect immediate responsiveness, but banks could manage these expectations if they chose to. The reality is that the culture of overwork is seen as a feature, not a bug: it filters for a certain type of person who is willing to sacrifice everything for the job. (Mergers & Inquisitions)

How Bad Are the Hours Really?

The average investment banking analyst works 80-100 hours per week, with one or two all-nighters a week. This translates to being in the office from around 9 a.m. to midnight on weekdays, plus weekend work. Associates and more senior bankers work somewhat fewer hours, typically 50-70 per week, but they are still far from a 9-to-5 schedule. (Kaveh)

However, not all hours are equally intense. There are busy periods, such as during a live deal, when 100+ hour weeks are common, and slower periods when hours may drop to 60-70. The variability depends on the group, the deal flow, and the time of year. (Investment Banking Council)

The physical and mental toll of these hours is severe. Bankers often suffer from sleep deprivation, poor diet, lack of exercise, and high stress. The industry has seen tragic cases of young bankers dying from overwork, such as a Bank of America intern who died from an epileptic seizure after working long hours. (Kaveh)

Will the Hours Ever Improve?

Despite periodic promises of reform, investment banking hours have remained stubbornly high. After the 2008 financial crisis, many predicted that reduced deal activity would lead to shorter hours; instead, banks simply pitched more to win business. "Protected weekends" policies have been implemented at some firms, but they often just shift work to weekdays. The COVID-19 pandemic and remote work made hours worse, as the boundaries between work and personal life blurred. (Mergers & Inquisitions)

Legal challenges, such as lawsuits by former analysts, have not led to systemic change. AI and automation tools may increase efficiency, but they are more likely to lead to higher expectations and fewer bankers doing more work, rather than shorter hours. (Mergers & Inquisitions)

For meaningful change to occur, the fundamental economics and culture of the industry would need to shift. This could happen if the supply of willing candidates dried up, or if clients began to demand more sustainable practices. Until then, the long hours are likely to remain a defining feature of investment banking.

Is It Worth It?

For many, the financial rewards and career opportunities justify the grueling hours. Investment banking offers high compensation, valuable skills, and a springboard to other lucrative careers in private equity, hedge funds, or corporate development. The intense experience also builds resilience and a strong work ethic. (Prosple)

However, the cost to physical and mental health, personal relationships, and overall well-being is significant. Many bankers burn out after a few years and leave the industry. The decision to pursue investment banking should be made with a clear understanding of the trade-offs involved.