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Equity Research Compensation 2016

Please do keep us updated. Hubris and Nemesis of kferdy, a cautionary tale.

Being vague is almost as much fun as that other thing

finding it difficult to envision him getting top end pay, or getting a job offer with no experience working with financial statements.

"Verdict: TRUE" - Fact Check

Ok..maybe I went a little overboard. My wife slapped me in the face last night for trolling you lot for information…sorry.

Here are some new numbers:

Associate: Y1 $110-130/ Y2 $120-140/ Y3 $150-180/

Analyst: Y1 $220-260/ Y2 $250-280/ Y3 $290-320

From year 6 and on those figures increase about 50k on the high end each year if you’re an incrediblly good analyst. For an average or decent analyst, the pay goes up about 30k on the high end. This means that most analysts will hit their first 7 figure pay-check sometime in their early 40’s if they’re incredible and will go on to make about 1-3 million if they’re very, very good. Once in a while in the right economy that bonus might even hit 5mil, but this doesn’t happen often in the lifetime of even the best analysts, unless they do something crazy and become the next Mozart of equity research. Most top equity research analysts will retire at ~55 with a net worth around $25-40mil if they’re really good and at the top for their entire lives. If they’re average analysts at top banks they’ll have racked up around $15-30mil. But even the worst analysts will live a better life than what I have currently and will still have saved up a significant amount.

These figures are top-of-the-line for the best people within the best groups within the best banks. They are slightly more, with less hours for buy-siders. 

I hope you’re happy forum. I hope you’re happy dear wife. 

But one thing I will say: Those of you who don’t even try out for these positions shouldn’t be so hard on yourselves. My friend, like I said, was also from the same background and networked his way into a top bank. He didn’t have anything crazy ridiculous thing on his resume. He had top grades, but we came from very low ranked schools even though we have a higher degree. He wasn’t even very bright. All I’m trying to say is that with passion and hard work, you can still make a good amount in this industry–maybe not enough to have multiple yachts and mansions around the world. But much more than the decent, hardworking American. And you don’t have to be a genius. 

Are you happy Forum? Are you happy you and my wife crushed my dreams of becoming a hundred millionaire rubbing shoulders with celebrities and working 10 hour weeks?

Well good. 

kferdy wrote:

Are you happy Forum? Are you happy you and my wife crushed my dreams of becoming a hundred millionaire rubbing shoulders with celebrities and working 10 hour weeks?

Well good. 

We’re gonna win so much, you may even get tired of winning. And you’ll say, 'Please, please. It’s too much winning. We can’t take it anymore. Mr. President, it’s too much.' And I’ll say, 'No, it isn’t!' We have to keep winning!

infinitybenzo wrote:

I don’t see Spieth, Woods, Ko going on a golf forum asking people “how much money would I make in endorsements if I won 2 majors in a single year before the age of 22?  Would I make more than the top 1% of tour players?  Because I know these numbers are almost unrealitic but I can do it with hard work.”

In their world it’s The Masters/British at St. Andrews or hacksaw…and John Daly is their Jordan Belfort.

…I would definitely read a message board where Woods makes fun of Spieth for going to Texas.

Forgot that Woods was not hacksaw. At golf or schooling.

'A flute with no holes, is not a flute. And a donut with no hole, is a danish'

Sad to see Woods go to the Hacksaw territory but no doubt he is one of if not the greatest golfer ever so far.  I was at the US Open at Pebble Beach when he won at -12 and the 2nd place was +3 in 2000.  That was really exciting to watch.  At 33 he had won 14 majors.  At 33, I believe he was on his way to his second peak then all the crazy stories popped up.  Anyways yeah he went to Stanford and according to his coach and teammate, Notah who is a golf analyst for golf channel said Tiger was a 3.5 student while breaking almost every NCAA records.  Matybe he should have went into finance after the scandal and make OP’s numbers in the finance world.

Eh but Woods might be done now.  In his 40s now and his body is breaking down.  Sad to see the great go down like this.  It is Spieth and Mcilroy era.

Another one of my golf rants/stories.

Be yourself. The world worships the original.

Hey guys, anyone know the comp for a first line centre on an average NHL team. I want to make $5-7mm a year so I think this is a good career path for me. I’ve only played hockey recreationally, but I’m going to take some power skating lessons and using this gain a spot on a farm team and work my way up.

Thanks!

All these kids that are entering a highly competitive industry and thinking that they’ll be top 0.05% of those working in the industry are completely delusional.

“I can no longer obey. I have tasted command, and I cannot give it up.”

Do you have two years experience on your high school JV team?  If so, you should be good to go.

I know a guy who is friends with Craig Ludwig, formerly of the NHL who won the Stanley Cup and played in over 1000 games.  If he could do it, you can too!

Sweep the Leg: "I’m tired."
KMeriwetherD: "Well, you were basically Legolas in the Battle of Water Cooler."

You guys can make fun of me all you want, but my friend was able to make it into the big leagues (sell-side, BB) and he had only a PharmD from an ok Pharmacy school and about 2 years of consulting–1 at a third=tier firm, another at a top-tier firm. It’s definitely possible. I’m not saying I’ll make these numbers, or that I’ll even be as lucky as him. But this stuff does happen very often and you shouldn’t dismiss it as fantasy.

kferdy wrote:

You guys can make fun of me all you want, but my friend was able to make it into the big leagues (sell-side, BB) and he had only a PharmD from an ok Pharmacy school and about 2 years of consulting–1 at a third=tier firm, another at a top-tier firm. It’s definitely possible. I’m not saying I’ll make these numbers, or that I’ll even be as lucky as him. But this stuff does happen very often and you shouldn’t dismiss it as fantasy.

happens very often? bullsht

Hope. It is the quintessential human delusion, simultaneously the source of your greatest strength, and greatest weakness.

Fooled by Randomness…

“I can no longer obey. I have tasted command, and I cannot give it up.”

OP’s original numbers are actually a little low, based on my personal experience. Getting to a 7 figure annual comp is more a matter of survival than skill. Stick around long enough, avoid getting laid off, and it’s bound to happen for you. I’m guessing the older people on this forum - bchad, s2000magician, etc. - are easily in 7 figure territory, maybe 8 in a good year.

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http://www.nypost.com/p/sports/more_sports/tiger_woods_alleged_mistress_...

THANK YOU. Take it from a guy who’s been there and back guys. I take back everything I said. The original numbers are true and low.

It’s true man…people just don’t want others to succeed.

Heyiheariheartmath, are you at the top now man? How long did it take to get there???

^ iheart makes high six figures just off his muni portfolio. Dude has $10mm+ banked. He’s at the top.

Anyway, lots of the other posters have also been there. And actually suggest numbers in line with CFA salary surveys rather than ihearts usual hyperbolic view of reality.

“I can no longer obey. I have tasted command, and I cannot give it up.”

OP, did you even look at those CFA surveys links?  Check them out.  “Analysts” should be able to take in new information and update their own estimates and in this case career trajectory.   So you want to be in the top 0.5% of the finance WORLD.  In what area or in whatever field were you ever even in the top 1% in the country?

Be yourself. The world worships the original.

Its clear kferdy is going to make a fantastic analyst. He reads 20 peoples opinions and dismisses them, and reads 1 that agrees with his original hypothesis and immediately determines that one is correct and everyone is out to “hold him down”

'A flute with no holes, is not a flute. And a donut with no hole, is a danish'

What bias is the OP least likely exhibiting of the following? (2 minutes)

A. Status quo

B. Loss-aversion

C. Overconfidence

Be yourself. The world worships the original.

D. moronism

"You want a quote? Haven’t I written enough already???"

RIP

igor555 wrote:

D. moronism

least likely igor. RTFQ

Hey Hamilton, have a holly jolly Christmas.

Yayyywork wrote:

Its clear kferdy is going to make a fantastic analyst. He reads 20 peoples opinions and dismisses them, and reads 1 that agrees with his original hypothesis and immediately determines that one is correct and everyone is out to “hold him down”

lol +1

Hope. It is the quintessential human delusion, simultaneously the source of your greatest strength, and greatest weakness.

^ confirmation bias and data mining?

IsThereAny wrote:

igor555 wrote:

D. moronism

least likely igor. RTFQ

"You want a quote? Haven’t I written enough already???"

RIP

You’re all like my wife–you don’t support my dreams! If I had a chance to divorce you guys, I would!

^never happened

"You want a quote? Haven’t I written enough already???"

RIP

It will. Just like my million dollar paycheck at age 35. Then she’ll come craling back.

I really can’t tell who’s trolling who anymore. 

but all the same to me 

Hope. It is the quintessential human delusion, simultaneously the source of your greatest strength, and greatest weakness.

in the future when these posts come up I will tell the poster that his/her numbers are wayyyy too low.  I mean look at Ken Griffin or Soros.  millions a year?  nah billions territory.

Be yourself. The world worships the original.