It depends entirely on your situation, your managers, and your company.
I was in a position where I thought passing the 3rd test raised my value a lot. I also knew the company I was working for sucked, and that me having the CFA wouldn’t increase their revenue. So I started interviewing and got an offer for about 30k more in a city where 30k goes pretty far. There are a few analysts at my old company pursuing CFA, and still nobody in management there cares even slightly.
Is there work at your current firm that requires the type of skills that the CFA teaches? If so, I don’t think its unreasonable to ask for a raise. Otherwise, if you feel you are worth more, you probably have to look elsewhere.
Yeah, not to rehash, but I think it all depends on your current position. If you’re already in an analysis role where the CFA would help increase the perceived weight of your analysis then asking for a raise probably wouldn’t be unexpected by management, assuming you’re not just one of 200 people with the CFA where you work.
I still have a long way to go with the CFA, but my intention is to use it (even after passing Level I) to improve my marketability and hopefully turn it into a new position completely different from what I’m doing now (Equity Research Compliance Officer). For someone not currently in an analysis position, my goal with the CFA is to be taken more seriously as a jpb candidate.
im kind of in a similiar situation where the CFA charter isn’t valued at all at my work space so it has always been kind of a void of what to do next etc etc
I find it super hard to believe an employer will boost your salary by 30k just because you got the CFA charter. If you’re saying someone quit at a small regional location, and with the CFA then landed a job at a big city, then I can believe it.
From my experience, this would be a bit laughable to ask for a raise based on passing the CFA. Most competitive companies compensate based on performance. Additionally, they may already be footing the bill for the test and test prep classes.
Passing level 3 is one of your (hopefully) several major accomplishments for the year. That is a decent way to position it with your bosses. But as others have said, it is probably worth considering exploring your options at other firms if you are hoping for a big raise. If your current company really thinks you are great, they should understand you might be more marketable now. But if they don’t really understand/value the CFA, then you could end up with jack squat.
My employer paid for the program as well, and a few months after I passed Level 3 I sat down with my boss to explain my situation. I mentioned that the charter makes me more marketable and that I wanted to stay with the company, but I would start to look elsewhere if it meant I could do better for myself and better support my family.
I was rewarded with an immediate 10% pay bump. I know it isn’t huge, but it was a nice way of them showing me that they value both me and the charter; also, it may make any future job transition easier (should I happen to come across a better opportunity, it won’t be unexpected to them).
He must be a good performer. You can pull it off if you’re good at what you do. In that case, the employer is really giving you a raise based on performance rather than obtaining the charter.
Becoming a charterholder will add value to you so why wouldn’t an employer give you a raise. If you’re a good performer and the company values the CFA then it’s a no brainer.
“Well this person is doing great and just passed exams that are pretty difficult. The person approached in a respectful way but f*ck em I’m not giving them anything”
Sorry, but if I were denied that just gives me the open lane with a clear conscious to go somewhere else
Most companies I’ve heard of that “value” the CFA generally have some sort of raise predetermined if you obtain the Charter. If you get it and, say, work for a textile company, you’re unlikely to receive a bump in pay.
45k is what someone makes coming right out of school from a second tier school in a local market that is probably in the bottom quartile of pay across the board within the US, not someone with 5 years of decent quality experience financial services experience.
It is true that based on all salary surveys I have seen: Bachelor’s w/o vs Bachelor’s w charter can be as high as double in terms of total comp after 5 years experience.
However, I think the reason for it is because, CFA charterholders are considered for higher paying roles average (in investment management anyway/Buy side). There boutiques out there where literally all of management has those three little letters after their name and the associates/analysts usually are well on their well but not yet.
I would wait until your normally scheduled reviews. Before then, take a look at your local CFA society compensation survey and if you are under the average you have a point to talk about.
You won’t get paid by having the CFA. You’ll get paid if an employer can’t afford to lose you.
So… conversation like
Boss: Here’s you’re 3% COLA adjustment for the year
You: I really appreciate it, the opportunity to work here has been great. I was looking at some compensation numbers from the local CFA chapter and I’m being paid about 20% below the average. It’s okay, but I would like to eventually reach and exceed that number. What more could I do here to increase my value to you and the company?
If you do that, you don’t sound like you’re threatening to leave, but you set some expectations and state that you are willing to work for more money. Maybe?