Currently a credit analyst at an asset management firm making 64K + ~20% bonus. I also have my CAIA designation so I am expecting a pretty substantial raise after passing level 3 or I am obviously looking for a new job. Anyone else in a similar situation or expecting a raise in general after passing. If so, how much?
Unless your boss/employer openly spoke about getting that raise/promotion by getting a CFA charter, I would not expect much. If you know someone from your firm who has recently obtained a charter you might as well ask them. But some companies tend to focus on downplaying the charter to keep costs down so you might as well consider getting a new job. The next one should pay off a lot more.
The majority of investment professionals have the charter and it is highly regarded. No one has recently passed internally. creates the feeling of being held hostage by the results.
That’s exactly my case. My company was really supportive and pushed me to go for the charter. Now when I’m nearing the end and they are supposed to pay me more, they have suddenly changed their mind of the importance if the charter…now they say that it’s not even a big thing and not important to them. So, yes, it’s going to be highway time in few weeks (if i pass)
I think it’s same everywhere.
Yeah, this is a known issue but nevertheless should not really discourage anyone. They “support” you because they want to make an impression of friendly environment and to send a positive message to others. These people tend not to think too much in advance and after all, only a relatively small percentage of people gets to pass the exam.
It is OK though because when next opportunity arises you and other charterholders are likely to be properly compensated when the time comes. I chose the word likely in previous sentence because it is not guaranteed that the awesome opportunity is just around the corner but I strongly believe that in the medium term there will be improvements.
Seems like bad biz to let someone leave and then have to replace them with another CFA and similar skills at a higher price. I think places push their luck assuming employees will stay put.
The amount you are paid doesn’t depend on charters, certificates and etc but solely on business value you deliver to the company. My senior manager making tons of money told me that he failed CFA L1 two times and left the program.
Don’t expect a raise just because you passed. That’s the wrong way of looking into things. Know your worth. The CFA doesn’t prove your worth. At review time, go in there and ask for what you want. Do your research and don’t be afraid to reach a little, especially if you think or know you’re underpaid, given you EXCEL at your job. Confidence is key, and if you’re young with no kids/mortgage then having nothing to lose is your best weapon (received a 46% raise and 28% raise after getting nothing one year). Companies aren’t dumb and if they know you bring value and its easier to pay you then to bring in someone else at higher pay. And if they reject your request, that’s fine too. Look somewhere else, albeit you’re in a good place financially that you can afford to take a risk and jump from your job.
I don’t excel at my job though 
What you do exactly, surfing on analyst forum?
This is very true. It also depends on both corporate culture (i.e. existence of nepotism and other circumstances). Just because you bring more value than others does not mean someone will promote you or give you a raise. But CFA charter strenghtens your argument or simply opens another door.
employers know it makes sense to wait for results before looking for a new job. why look to switch when you can wait to see if you passed and be more marketable when searching for the next job. which brings me back to the original question. now that its conveniently time to revisit my salary that i took issue with at last review (January), do I expect a raise that brings salary to something appropriate (which is well above $64k) given my experience and now the fact that I can more easily monetize it. I expect better compensation even if I fail, but if I pass can I make the previously failed argument that I deserve an very significant raise?
Have they communicated a raise already? If not I wouldn’t expect anything because more than not we don’t always get what we deserve. What it comes down to is if 1) the company likes you 2) the company finds you valuable 3) In some cases,the company temporarily finds you irreplaceable( because everyone is expendable in the end). How much relevant experience do you have, i.e in finance? Do your research and have a range in mind, and be ready to back that up with things you have contributed to your work, i.e make the team more efficient, goals you achieved, etc. As a potential charterholder, I understand how you may feel but although my company has supported my CFA efforts, my raises have been given from the things I do at work, using the knowledge I gained through the CFA process, and not directly tied to whether I pass level 1, 2, or 3. I wish it was but that’s not the case here and many other places.
Good luck!
I get rejected by financial advisors all day long who don’t want anything to do with my firms asset allocation guidance. I represent some of Wall Streets brightest quantitative analysts in a program where I hand pick different money managers to build unique investment models across a wide range of investment methodologies that I have a high conviction in having a positive impact on their clients long term financial wellness.
Best part is, it’s an entirely free service. The only spot I collect revenue is when I integrate one of my firms proprietary strategies into the model, which I seldom do. I can only use our strategies in a model where it makes sense. BUT NOOOO FUCK ME RIGHT?!?! I’m only here trying to help these sumbiche’s. and they all claim they can capture superior returns on their own without me.
shit aint right.
Hell yeah I expect a raise - worked my a$$ off for this shiiiiii* and also I’m expecting a raise of ~30k which has been communicated so I’m gonna have a rough day if I fail lvl 3
It also depends on what your other team members bring to the table. If you were gone tomorrow, can they step in to take over your role perfectly right away? How much pain can you deal to your boss? It’s all relative. If you are with a team of unmotivated ppl who just want to run down the clock every day then yeah, maybe your boss would give you a bigger raise. But then again, even if you get a raise, do you want to be surrounded by a bunch of unmotivated ppl on a daily basis…