Advise me on sell-side equity research associate offers: what am I worth and what, if any, leverage do I have?

Water Cooler Careers
#1

Hey internet, if you’re able, I could use some help setting expectations for sell-side research offers. I realize there are other topics on pay but I searched “compensation” and went through ten pages of results looking for data on this, unsuccessfully.

I’ve been chatting with a large bank about an equity research associate position for a month now. The process has involved several phone calls with the analyst, a modeling test, and getting grilled at their HQ for a day (went pretty well). There is one more person to interview with but my estimation of my odds of getting hired has risen to ~50% plus.

I’m wondering what to expect, and what to ask for, should they pick me. My background: Age 25, passed CFA Level III, three years of front office experience, strong academic record. The firms I’ve worked for are not traditional though and I have minimal excel modeling experience (although the analyst was satisfied with my work on his test). My compensation currently is a bit hard to describe, but let’s say that for 2014 I pulled down an $80k salary and $55k bonus, for $135k all-in. That happened in a cheaper city, working 55 hours a week. The firm I’m interviewing with knows this.

I want this new job. The analyst is highly regarded, I like him, I could learn a lot, and for various reasons I’m not content where I’m at. That said, it would be more hours, I would be giving up my current year-end bonus, I’d have to relocate (possibly to another cheap city but possibly New York) and I have no idea what they’d pay me. I’m worried that they will ask me to commit fiscal seppuku and I will be forced to turn them down.

What might be fair for someone with my credentials? Is it reasonable to ask for anything at signing? What is the usual salary vs bonus breakdown? Is it reasonable to expect any consideration for the December bonus I’m giving up at my present situation?

Appreciate your thoughts!

#2

what sector?

#3

you from bmore?

#4

I think you need to focus on your longer-term career goals. If you take this new job, are you going to acquire the skill set and experience you need to make the next big step to the job you really want? You may have to suffer some short-term financial pain for long-term gain.

Unfortunately I can’t provide any advice on your comp expectations but from my own personal experience I went through a similar situation. I took a job way below paygrade just to get in and get the experience I needed. Opportunities came up, I made my move and things have worked out great. Both in terms of the job and comp (esp. comp).

Hopefully some other posters can give you some commentary on how to deal with bringing up and addressing the comp issue with the prospective company. If I were you, I’d PM numi and seek advise.

#5

If they want you, they will pay you. Hold your ground initially to feel them out, but also remember if this is a great career move then pay should come second. Especially if you have (hopefully) saved a lot after making good money in a cheap city.

#6

NYC 110k base

#7

are you a Japanese?

#8

Equity research compensation is fairly straight forward for an associate with no experience. Check Glassdoor and you’ll get info on it

#9

If you get the offer, you should definitely tell them that one of your key concerns is leaving the bonus on the table for year-end, for which you expect to be paid well given your top performance. See what they say about that. They may or may not decide to “buy out” your bonus - if they want you badly enough and think you’re way above your competition, then they will.

I offer more detailed advice on this sort of stuff, for which you can contact me privately at numi.advisory (@gmaiI) if you wish. I also recommend you read the links in my signature for some other useful information.