AM Compensation
Just wondering what sort of compensation someone at say VP level with CFA and 3 -5 years experience would be making at a mid sized Asset Management firm running US Equity portfolios. Mid sized AUM in the range of $10 - $30mm?
What would base and bonus look like?
Does it get significantly greater when you reach the levels of PIMCO of Wellington?
Do you mean 10-30B? There is no VP level per se but you would probably just come in as a Research Analyst...depending on the fund and your background I'd guess 100-125k base with a 75-125% bonus depending on your own and your fund's performance. This is such a general question though that you are getting an equally general answer. It does not necessarily get greater at the biggest shops. In fact, the Investment boutiques that run more esoteric strategies than "US Large Cap" and are probably in that 10-30b range often pay out a much higher % of revenues to employees.
$10 - $30mm...do you mean billion? Very few HFs are that small, let alone a traditional AM. Running a firm off a 0.25% management fee would be impossible at that level- you would be making 25k -75k per year for the entire firm.
I am not sure what pay would be like at that level, but it doesn't correlate all that well with prestige. For instance, PIMCO pays below average below the PM level, while Wellington pays on par with Fido/T. Rowe (but pays more to partners...private ownership).
I do not have hard compensation numbers, but my impression is that you would receive compensation roughly in line with a similar amount of experience in IB, maybe slightly lower. 4 years in with a CFA? 300k all in seems about right at a large asset manager.
The answer, as always, is "it depends." If you're at Fidelity doing mindless Large Cap Blend work, it's probably not as much as it would be working at Yacktman, which is plenty smaller, doing similar yet more concentrated work. Also, the smaller the fund the more you get paid out based on performance, and obviously headcount is an important factor. Chances are, coming in as a research analyst at a big fund you won't be getting nearly as much credit for any research you're doing as you would at a smaller place where you have more ownership over your ideas. With 2 years of experience behind you, I'd guess something like 125k base is about right, though I think Cheese86 is a little high on the bonus for most larger funds... maybe more like 50%. This could also be more like 150% though if you kill it and/or are at a smaller place with more responsibility.
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