^You tell me. BS is the one paying.
So basically they don’t. Point made.
It’s rolled in to services right now and aggressively contracting for a reason. The SS collapse is outpacing any perceived decline in the BS by a multiplier. I can’t tell you how many conversations I’ve had over the past year with BS analysts across the industry viewing it as a boondoggle that’s just not adding value. One major reason is that the largest BS shops have grown to the point that they have in depth multi layer coverage in house that eliminates the need for SS access.
Just to clarify, he hasn’t hired and fired all those people. Instead we know (with long lead time) that my fellow associate is leaving and are struggling to replace him because no one makes it through interviews.
I don’t think it’s entirely my boss’s fault no one survives - we have had CFAs missing basic questions (“why might one company deserve a higher EV/ebitda multiple than a peer in the industry?”)
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I’m sure if I stuck around long enough without messing up I could take his role. He doesn’t want to work into twilight years. That said I’m not sure what compensation will look like then (and since I don’t have the leverage my boss does, I wouldn’t start out at 7 digits even in yesterday’s market). I think they probably pay newly-promoted analysts ~$300k, right now. I get the sense that associates who have a few stocks of their own make ~$225k (a first year out of law school can do that well, which gives me pause). Obviously someone at a hedge fund can do as well or better.
I should add that while I’m not at a bulge bracket, the market cap of the firm is still tens of billions - i hear anecdotally that it is real slog at the smaller shops. We interviewed a dude at who had his own coverage and was paid less than I am. We all know several small brokerages closed this year because no one wanted to buy them at any price. We also interviewed a dude at a bulge bracket who wanted out because his firm had a hiring freeze that resulted in him being the sole associate for an analyst with 25 stocks under coverage (slavery).
I honestly don’t understand what your question/apprehension is. You’re not going to make the big bucks in ER unless you are a senior and have your own coverage. You’re still a cost center. Do you have designs of being a senior? The whole point of being an associate is being on track to being a senior analyst. If you’re not going to, move on.
Buyside yes. Sellside no.
^This practice (corporate access) will likely see an end in the US in the future as it will very soon for the UK:
https://www.irmagazine.com/articles/sell-side/21432/corporate-access-reforms-checking-sell-side/