Say if you make the right move as an associate and get promoted… what type of pay can you expect starting out? Let’s say in NYC, since they’ll be more data points. Is there a wide range depending on BB/MM/Boutique?
not a lot of bonus these days, I was offered around 135k base with 30-45k targetted bonus at a relatively large shop. Not great when you take into consideration of the work schedule versus buyside roles.
About tree fiddy.
Seriously though, good question. It’s something I too have been wondering. I’d like to go to ER, but I hear it’s just a dead/dying industry. Would I work 80 hours a week for $100K+ pay and a $30K-$40K bonus? You’re damn straight I would, but that’s because of where I live. Tennessee has a very low cost of living and that would allow me to live like a king. That salary would get me a really nice 5 bedroom house, with a pool, an outdoor kitchen, and several other nice things.
That’s NYC pay, my friend at goldman starting out only like 70k in Utah LOL but still saving more than guys in NY probably because of low COL.
that sucks for the amount of hours worked and living in NYC.
Look at glass door. Also Wallstreet oasis just released their compensation survey, but I think it was just buyside
Eh, why do so many people want to do ER then? That’s less than most “front office” jobs.
I suppose for most people it’s about the money. For me it’s more about doing what I enjoy and not so much about the money (although it does play a role). I also thought it always sounded cool when I was a teenager. I just enjoy doing research and analysis on companies, so why not do what you like and learn to better your investing skills at the same time?
At this point in the industry life cycle. I think it’s beyond the money and doing something you’re genuinely interested in, can do for a long time, and don’t have to drag yourself into work everyday.
Thanks for the thoughts… trying to figure out a plan so very helpful.
But I suspect it’s also less stressful than other front office jobs. I know of analysts who seem to only work 30 hours a week outside of earnings. And there is not nearly as much accountability for being wrong while still being involved in investing.
“And there is not nearly as much accountability for being wrong while still being involved in investing.”
You could say that there is more accountability for mistakes in front office jobs but I totally disagree about the “not nearly as much” statement, given the fact that when you put out an ER piece you have hundreds or even thousands of institutional investors and paying retail clients that are scrutinizing your work, and just a few errors will lead to a loss of credibility followed by swift termination, which is the same outcome a buy-side guy would face for making an avoidable mistake that negatively impacts performance.
outdoor kitchens overlooking the pool are sickkk… next level stuff is swim up to kitchen bar
I’ve never seen that happen. Even this guy is still around, but maybe the associate got fired.
Definitely less accountability on the sell-side. Most of the calls are bullish, just follow the crowd basically, downgrade when it’s already too late. I seen plenty of people with subpar track record on the sellside still at their jobs, this would never happen on the buyside if you are constantly messing up.
Exactly because you can add value in other, arguably easier ways like being tight with management teams.
Research tends to be considered a perk that comes with other services. Corporate access is also a big deal, as stated above. So, I am not sure how investors will respond when they are required to separate research fees from other costs.
I think the sell-side’s offering of corporate access has and will continue to be diminished. Part of the function of a sell-side analyst was a glorified exec assistant; setting up calls and meetings with top management.
However, most public firms now have a formal IR department, which makes the outreach efforts substantially easier for the buyside. The buyside will still be slow to change (first time officially working for a big shop I was shocked at how much they still relied on sell-side research services), but it is happening.
That’s interesting. However, from what I see in financial services, clients also tend to react towards product that is pushed to them, rather than proactively seek opportunities. So, they are more likely to participate in a corporate access event because JPM has already organized it and asks them to just sign up, rather than take the initiative to call up the company’s management themselves. If bank sponsored corporate access declines, clients will probably increase their outreach somewhat, but not to the extent that it fully makes up for the change.
Agreed. Buyside can be fairly reactive and not proactive. Still, it’s not a great outlook for the sell-side as their business will continue to shrink. I also forgot to mention the various 3rd party IR firms that, while much more promotional, are taking more and more of that corporate access function away.