How Much of a Pay Cut Would You Take?

CFA General
#1

Hi Guys, This question is more for those who are not in the area they are working towards just yet. Just wondering how much of a pay cut you would consider accepting to get a foot in the door? I have a few years experience, but there are a few Grad positions that are being advertised for ER, the only thing is that the pay is substantially lower than what I receive now. I think that it would be a good opportunity to get a foot in the door, and a great chance to learn the ropes - just curious as to how much of a pay cut everyone thinks is acceptable? Cheers

#2

Many people here have stated that they will go as far as working for free for the first 6 months.

#3

It seems like you should do some research on expected earnings progression for the positions that you are interested in. Presumably, you would only switch if you could expect to eventually make more money than you currently do.

#4

ER in a hospital trumps ER the excel monkey

#5

i’ll take a pay hike and go do something totally different if available. f**k pay cuts

#6

^ Ignore this guy, he has no idea what equity research is like as shown from his other posts. That or he’s just bitter he’s not in ER. Anyway, I wouldn’t say just look at the money. If ER is what you want you really want to do, and it will make you happy or excited going to work, I’d say that’s very valuable.

#7

^clown the notion that one should take a big pay cut, or sell their skills for free just to “get a foot in the door” is just lack of self respect. whats so great about ER if you’re not gonna be there for the pay? enlighten us, if you’re in ER, whats your sense of fulfilment since obviously monetary compensation is not important to you

#8

I wanted to do ER for a long time, still think it looks good. I think people are referring to initial pay cuts with expected progression resulting in positive NPV. Coming out of my masters I woul have done 6 months pro Bono to get a foot in the door in a heartbeat. Not now, but I’m pretty happy with my current gig. ER can be intellectually stimulating, with light travel, get to meet industry execs and you get to publish work which I think would be cool. Work life balance isn’t so bad either. Plus, good ER analysts get options to move into executive roles in the industries they cover, or IB or the buyside, so optionality is there. Also, once you are your own analyst you are kind of your own man. As long as your work is good you can do whatever. I know an analyst that spends about 2 uninterrupted months every year at the shore with his fam and makes probably 500-700. That’s not bad.

#9

Mobius Striptease Wrote: ------------------------------------------------------- > ^clown > the notion that one should take a big pay cut, or > sell their skills for free just to “get a foot in > the door” is just lack of self respect. whats so > great about ER if you’re not gonna be there for > the pay? enlighten us, if you’re in ER, whats your > sense of fulfilment since obviously monetary > compensation is not important to you Sorry Mobius, I was saying to ignore wake2000, the guy above you. You clicked the post button faster than I. In terms of pay though, If I loved ER and hated… say sales, I would be willing to take a minor hair cut on salary to do what I love.

#10

^sorry bro i overreacted a bit… small cut is always acceptable for a strategic move when there is growth potential, i just hate to see ppl with experience being strongarmed into low pay and selling off their talent to “brand name” firms or “brand name” positions. happens so often in the current market.

#11

So iteracom and greengrape are the same mule. I guess that’s good to know

#12

iteracom Wrote: ------------------------------------------------------- > ^ Ignore this guy, he has no idea what equity > research is like as shown from his other posts. > That or he’s just bitter he’s not in ER. > > Anyway, I wouldn’t say just look at the money. If > ER is what you want you really want to do, and it > will make you happy or excited going to work, I’d > say that’s very valuable. Agree, I’ve seen a few posts by wake2000 on the topic of ER and his information is garbage in garbage out. Take it from someone who works in ER.

#13

wake2000 Wrote: ------------------------------------------------------- > So iteracom and greengrape are the same mule. I > guess that’s good to know HAHAHAHAHAHAHAAAAAAHAAAAAAAHAHAHAHA!!

#14

Darn, I thought it was my user name logged in. It seems I posted from my gfs account while she was logged in. Yes she recently got in ER so I may be slighty biased in defending ER Oh well.

#15

iteracom Wrote: ------------------------------------------------------- > Darn, I thought it was my user name logged in. > It seems I posted from my gfs account while she > was logged in. Yes she recently got in ER so I may > be slighty biased in defending ER > > Oh well. So you’re banging greengrape, is that what just came out (haha - get it)?

#16

^ no? If you people must know, her favorite fruit snack are grapes. I’m sure you’re smart enough to figure out which variety.

#17

You’re not banging greengrape? You guys Mormon or something not that theres anything wrong with that. Much respect to green grape iteracom and Tim Tebow

#18

I made the jump from a sales role to research associate not too long ago. Price tag on my foot in the door was a 25% cut (from commission goal to pre-bonus salary). I’d say I’m happy with my decision.

#19

my company just reemed us with a 10-12% pay cut as christmas bonus

#20

iteracom Wrote: ------------------------------------------------------- > ^ no? If you people must know, her favorite fruit > snack are grapes. I’m sure you’re smart enough to > figure out which variety. Is this code for weed? Anyway you cut it - props to iteracom - greengrapes sounds hot. ETA: Props to mormons in general - holla Wake.