Does anybody think the IB pay pumps will have an affect on AM salaries?
Title pretty much says it all. There was already quite a differential between AM and IB comp. With the IB bump in salaries that comp has only magnified. Is there any chatter about AM comp increasing as well?
Thanks.
From other threads, it seems like Blackrock's base is at 100k (based on interns' prorated comp). I'm at another large AM that's increased comp, too. Idk exact amounts, though, since intern comp isn't prorated from FT comp here. It's not unreasonable to expect pay hikes at the associate level. There's always going to be a pay differential when compared to IB, since you're simply not working as many long hours.
I always expect there to be a pay differential between IB and AM especially due to the hours. But they do essentially compete from the talent pools so was hoping that AM salaries would see a small bump as well to compete with IB.
BlackRock bumped pay for all employees by 8% over the summer, partially in response to the IB pay hikes.
In Financial Times, ex-T. Rowe Price CEO said in an article a couple days ago that his company probably wouldn't be doing that. But BlackRock and others have, so I don't know
Saw the article--that's frustrating to see about T Rowe. While I agree that pay hikes have diminishing marginal returns, the same can apply to office culture, too. If T Rowe's culture is already great yet they want to be more competitive for talent, pay hikes seem like the way to go. And from what I've seen elsewhere on this site, T Rowe already underpays juniors compared to other large LOs.
Yeah I totally agree here. Another thought I've had about this is that T. Rowe has a lot of trouble bringing talent in since the company is located in Baltimore. However, due to lack of opportunities at other financial firms in the Baltimore-Washington area, and due to low cost of living for the area, more senior people generally find that leaving the company is pretty hard, even if you want to move. The deal for seniors is just too good, and combined with a superb culture, nobody at the senior level wants to leave.
For juniors, that's not the case though. Juniors don't have access to the kinds of expensive things seniors do anyway (which are significantly discounted in Baltimore area), and are paid less. This generally leads to a lower NPV career path for people who want to start there at the junior level unfortunately. Combined with the difficulty of getting juniors to Baltimore, I think T. Rowe is going to have trouble in future recruiting seasons.
In conclusion: For Junior staff, you can't ask both a location and a comp sacrifice (especially when taking COL into consideration).
Edit: I'm aware also that LCOL areas usually come with lower comp, but considering that most of T. Rowe's competitors are not based in NY or SF, I think that keeping up with them makes sense.
Has Cap group or Fido raised comp?
bump, also interested
I wish but management at my firm is stingy af. seeing a lot of turnover and poaching though, so maybe after more people leave
Can I ask about the general size/AUM range that your firm falls in?
Around $50BN credit fund; think CLO manager
Same at my fund, independent AM, we’ve had an insane amount of turnover since covid (baring in mind literally nobody left before that). I’m hoping soo much people leave that they feel inclined to raise comp for everyone as I really don’t want to leave but may have to for comp reasons.
Yeah the level of fomo is unreal. My shop is understaffed as hell, and I'm working past like 2AM. I literally left banking because I thought AM would be way chiller and now it looks like I took a massive paycut to work the same hours lol. Nobody really appreciates it because they just expect me to work, and the opportunity cost of not getting paid the same to work less or getting paid more to work the same amount is just insanely high.
We compete for pools of talent coming from IB and are starting to see comps adjusting. To be fair it’s not just IB…genesis was likely in part driven by Apollo’s mutiny in June 2021.
I work at a large diversified AM and base salaries got bumped by 15k across analyst level positions (AN1 to 100k, AN2 to 105k, AN3 to 110k). Bonuses also seeing a similar level bump but still overall low
Thanks for the data point! I’m assuming the analyst title is for those out of undergrad at your firm?
Yep
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