Is it better to only jump ship for a promotion or is a lateral with strong upside also worth it?
Assuming that you're fine with your current company.
I currently have an opportunity to move one of the top tier AMs with better prestige, much better learning opportunities and better pay. In all categories, it's a step up from my current firm. I'm currently a research associate and will be making a lateral move and would be joining a research associate there as well. The pay gets substantially better at the Analyst levels and above.
Should I wait for an Analyst level to open up (which may never happen) or should I take the RA position and the learning opportunities that come along with it and work for a promotion?
Based on the most helpful WSO content, here are some key considerations for your decision:
Pros of Taking the Lateral Move:
Better Prestige and Learning Opportunities:
Better Pay:
Future Promotion Potential:
Cons of Taking the Lateral Move:
Starting Over:
Uncertainty of Promotion:
Pros of Waiting for an Analyst Position:
Stability:
Current Company Fit:
Cons of Waiting for an Analyst Position:
Indefinite Wait:
Missed Opportunities:
Conclusion:
Given the context, it seems advantageous to take the lateral move to the top-tier AM firm. The better prestige, learning opportunities, and immediate pay increase outweigh the potential risks. Additionally, the new environment might offer a faster track to promotion, especially if you can leverage the enhanced learning opportunities effectively.
If you have any more specific concerns or need further details, feel free to ask!
Sources: Life decisions...buy-side equity analyst, https://www.wallstreetoasis.com/forum/equity-research/career-ladder-equity-research-vs-investment-banking-a-definitive-guide-part-3?customgpt=1, Snubbed for promotion - What would you do?, Better career path: associate at REIT or small PE shop?, A warning to those aiming for Sell Side Equity Research
Yes this is a no brainer for pay, prestige and learning opportunities assuming is the same research associate level i.e. not going back to "year 1” bc think you should never go materially backwards voluntarily early in career unless switching careers. As you say the analyst position may never open up and in theory you should be able to get better ones from the new firm (which compensates for potentially having to stay for 2 years and missing out on "open" analyst positions and/or if you have to burn bridges to jump before that). I find in AM careers it is good to play for the upside (i.e. better long term firm/better chance at analyst) rather than get hung up on "I made analyst in 4 years vs. 6" etc. (unlike say banking) bc AM lifetime earnings are backward loaded (duration of career earnings stream is long)- I.e. if you’re worried the move could make it so it takes longer to make analyst
The only caveat would be if you have a materially better shot at analyst at your current firm vs. the new one. You should have a decent sense for this as you wouldnt wan to trade say a 80% shot at analyst in the next 2 years for next to 0 for the next 5 years to use an extreme example. Hopefully this doesnt contradict the 4 vs. 6 year example I used above as i think one can override it when you have more sure info i.e. likely to make analyst vs. no chance (bird in hand still applies bc if you can get an analyst role for sure you can then trade up on that later so is still the higher upside option IMO).
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