How much to pay new Associate?
Hey guys, I am just wondering what your thoughts were on this. How much should I start the entry pay at my firm for a new associate?
I want this person to help me build the in house research portion of my firm. Should have somewhere between 5-8 years experience from another reputable firm in the past. Previous titles could be associate or higher depending on that firm's structure.
I don't want to be too low, but I also don't want to be too high and make sure the person's contributions improve my trading and generate results. Otherwise, why not just pocket the cash myself!
Context? How much can you afford? I'm assuming this is post MBA. How will you recruit? Who are you competing with? Also, with 5 - 8 years of experience and an MBA, you're probably looking more at the VPish level than associate (2 analyst, bschool, 3 associate for example) so that needs to play into this as well.
Which city is this in and how strong of a candidate are you looking for?
I can't discuss comp directly, but this info would be helpful for a lot of other folks.
20 Dollhairs
What are you looking for MBA/ CFA, 5 years working in ER at a BB? If so you'll probably have to pay 150+50k or so.
I want a candidate with a CFA / PHD or both who has done ER for atleast 5 years at a BB or other investment management firm. I would say 150k plus 50k bonus would be at the high range of my comp that I had in mind.
I am thinking more 70k base and 30k bonus for the first year. Certainly higher later on if the candidate actually contributes to increasing the performance of my firm.
I'm based outta San Francisco
A BB ER associate probably made 70 base and 30k bonus in his first year as an associate. You'll have to do better if you want that kind of candidate.
Yeah at 70+ 30 absolutely no chance, that's roughly what I made as a first year in ER. Remember associate in ER is the low man on the totem pole. After 5 years you've usually moved up to analyst or gone to B School. Only possible way you could give out 70 + 30 is if you gave them a nice cut of the profits, but even then not really. People move to the buyside for the easier hours and bigger paycheck. No way they are taking a step down which a 70 + 30 structure would 100% be.
Yeah, 70+30 seems really low. I think you could get someone with the type of profile you're looking for for 90+40, assuming they've been laid off and are desperately looking for a job.
Ok glad I asked. Thanks for the heads up!
FWIW, I think $70 + 30 isn't even on the map for what you are asking for. I have 6 years in, CFA, 3 years at a top HF. Wouldn't consider anything less than $350K all in at the low end, and that would be if it were a sick job with a good PM that gave me a lot of latitude and learning experiences.
The problem you have is that no one willing to take $100K is going to be able to help you do what you want, and no one who can do what you want will work for that little. You could probably find someone respectable at $200K given the economic environment.
Also, nobody good is an associate after 8 years, or even likely after 5.
Not trying to be a dick, just my $0.02.
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