In Michael Lewis's book "Liar's Poker," the author examines the high compensation in investment banking, particularly for those with minimal experience. The primary reason for this trend is that the job's structure allows individuals to generate substantial profits through their connections and communication, often linked to their roles on the phone. This highlights the transactional nature of the work, where the ability to engage and persuade clients can lead to significant financial outcomes.

Moreover, the success in investment banking isn't solely dependent on technical skills or extensive knowledge but rather relies on personal attributes such as creativity, determination, and a bit of luck. These intangibles play a crucial role in navigating the fast-paced environment of finance, where quick decisions and charisma can drive profits, thus justifying the high salaries of less experienced employees.