AuthorTopic: salaries comparison
nordberg42
@2014-07-05 14:23:01
Hi everyone,

I was just doing my research on careers in Finance. I-banking is the field I was considering to take, as it pays you good and other things but the thing is that it is a very stressfull field in finance on the other hand I came across Money Management, this feild in finance IMO is better then I-Banking as it pays better and you have to work less as compared to I-Banking....

What do you guys think....Which feild is better (After taking everything in consideration)???

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Money Management: Salaries (Listed Below)
Salaries in money management are likely to be mainly a result of performance. Starting analyst positions for undergraduates at leading mutual funds, pension funds and bank trust departments have salaries in the neighborhood of $30,000 to $50,000.

In the world of equity portfolio managers, there is high dispersion of pay. A job at a state pension fund or a bank trust department will pay in the $60,000 to $150,000 range. Once you are out into a private fund or a money management outfit, salaries can rise quickly if you have a record of strong performance. These days, we hear numbers on the order of $500,000 rather routinely and numbers north of a million on occasion for equity managers.

Matters can be equally lucrative on the fixed income side. There are pockets of scarcity such as managers of mortgage- backed securities and asset-backs. In this area, a common number might be $700,000. Many money management organizations are relatively small (perhaps 5 principals and 20 others). In these organizations one typically finds that the principals do extremely well since they are equityholders in the enterprise. Numbers north of $10 million are not unheard of. That said, starting and running a successful money management outfit is a life's work that requires all the skills discussed above in ample strength.

Salaries in Investment Banking (with bonus)

Job Level -- Bulge Bracket -- Regional Player -- Prerequisite(degree/yrs experience)

First Year Analyst --$60K to 110K -- $30K -70K -- Bachelor's
Third Year Analyst -- $80K to 200K -- $70K - 150K -- Bachelor's
First Year Associate -- $125K to 235K -- $70K - 150K -- MBA
Third Year Associate -- $150 to 450K -- $120 - 250K - MBA
Assistant Vice President -$200K to 600K---$75K - 120K -- 2-4 years
Vice President -- $250K to 800K -- $100K - 400K -- 3-6 years
Associate Director -- $250K to 1MM -- $150K - 500K -- 3-8 years
Director / Principal -- $300K to 1.2MM -- $200K -600K -- 5-10 years
Managing Director / Partner to -- $400K - 20MM -$200K and up -- 7-10 years
Department head -- $750K to 70MM -- $300K and up -- 10+ years
larry
@2014-07-08 08:43:18
Both fields are stressful, i can only speak from an ibanking standpoint having worked in corp fin for a bb as an analyst and now working in leveraged fin as an associate. I think ibanking is an excellent choice right out of college if you can get in. It looks great on applications to bschool and law school and it gives you a lot of opportunity to work with a variety of senior people. It also will consume your life for 2-3 years but at the end if u hate it you'll at least have strong technical skills (ie Excel, PowerPoint, Bloomberg, Factset, etc) that u can apply in other career pursuits.

The thing with banking is that u dont want to go in eyeing the compensation right off the bat or you'll burn out. The thing is the MDs that really are great bankers love their job, it's amazing, my MD is loaded with energy for deals, he never stops thinking about the next deal, pitch, execution, and frankly it's tough to keep up with those types. And the same thing probably applies to money mgmt as well with the various securities jocks, whether its stock, bonds, ec.

The thing is you have to have that passion or you'll languish at some low-mid level position in these areas or just leave the field. What I mean by that is that its not enough to just work the 70-90 hours on models, books, etc you should be following the field you're in religiously. I'm in leveraged finance and although the hours are rough I love the work and area I'm in and that's been a big part in why I follow and seek out as much info on private equity as possible (leveraged finance groups at banks put up the cash and structure the deals for PE firms). Anyways, there are more qualified people to speak on asset mgmt but I can offer insight on banking.
podman
@2017-09-19 16:06:59
I think that with asset management the salaries are a bit more steady. The bonus component, though important with respect to the overall comp package, is not the defacto name of the game. With I-Banking I would guess that substantially all of the comp is bonus oriented (for the VP and MD's anyway). But don't worry about that. Few of us, if any, will have to worry about that.

With asset management, its more about AUM and fee generation. With I'Banking, I believe its the fees you glem from a deal that you advise on.

I am not an I-Banker so I really do not have a good perspective on how they are comped.

I am an Asset Manager so I can speak as to how I am comped.

Make sense?

The other thing you have to consider is that Asset Managers can have difficult jobs. In fact, the people who run the Equity Pools: mainly European and Asian (but to a similiar extent) the CDN and US Pools work fairly hard. It is not unusual for a Global Pooled Fund Manager to log in 80 hours per week and the successful ones earn WELL OVER $100,000. This is not a may-be, I am TELLING you this.

So the two roles are somewhat different, but you should necessarily view Ibanking as the meat grinder type of high stress job that has high turnover and big paydays.

Similarily, you shouldn't view all asset manager jobs as cushy plush office gigs with trading admins and associates doing all your work.

Hope this kind of helps,

The other thing you might want to do is narrow down the VERY broad universe of I-banking units into stuff that you are REALLY interested in. And when I mean REALLY I MEAN really. You should approach I-banking as solely a money maker. You'll be toast in 18 months (Know of three people - first name basis who fell prey to just that). You should at least have some vaguely academic interest in the area you want join. Otherwise the job becomes....just another paper pusher.

I know way more about Asset Management so if you have any questions about that, just feel free to post them.

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