Pay cut ever worth it for PM opportunity?
When thinking about these two analyst options how much of a discount/pay cut would you take to move from current to prospective role given it could be a pay cut of say 10%
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current role- downward comp trajectory, zero chance of PM, shrinking AUM for strategy
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prospective role- ability to increase comp as not using “top bucket” analyst comp for assumptions, strong chance of PM in near future, stable/larger AUM for strategy
assume everything is the same (culture etc, WLB) and assume for other reasons contained to these options
Bump any views?
So we are in an industry that is a melting ice cube as a whole. You are at an ice cube that is sitting out in the sun in a cooler and you can move your ice cube into a refrigerator with potential to go into the freezer. Sounds like a no brainer to me if you are looking longer-term
Thanks- appreciate the sanity check and agree it is pretty obvious when you put it like that. 10% cut hurts but is immaterial over a 5 year period when I weigh the much higher chance of zero in scenario 1
100% move. 10% immaterial esp after tax
Thank you. How would you think about it if you were leaving say ~50% of annual take home in deferred and they were only willing to say cover 10% as a a sign on? Similar logic that 50% gets cut down with taxes and then given the different outlooks would likely have to discount the 50% by more to “risk adjust it?”
Any thoughts on this part?
I think it's pretty much the same - unless it's equity awards and/or something that could 100x or something crazy - I would not trade the short term payout for the long term opportunity you described. If you want to be a PM, think there's meaningful upside compensation wise over the next 10 years - it's a no brainer to make the move, and eat the money as an 'investment' in yourself.
Thanks- this is what my gut told me but I appreciate the sanity check
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