Lateral opportunity with a pay cut, seeking advice
HI all,
Long time lurker, second time poster here.
Brief background, graduated from target USA undergrad (west coast) and landed in HK due to COVID. Have been hustling hard to land FO and eventually made it in a regional S&T shop (non-Mandarin speaker btw, so IBD options were not viable...).
Fast forward 4 years in HK, was approached from top USA BB AM arm for an investment analyst role in a sector which I am greatly interested in.
Here's the catch, I'll have to re-start from ground zero from analyst again. Plus there will be a 6 month contract period without a guarantee to convert FT and there will be a 20% paycut from my current salary.
In Summary:
- regional S&T shop (Sell Side) -> Top USA BB (Buyside) (GS/JPM/MS) --- Both in HK
- AM investing role (due to possessing specific language skills)
- 20% Paycut, which I'm hesitant with.
Would like to hear thoughts/advice from people who were in a similar boat. Any feedback is welcome.
Ahoy there, matey! Sounds like you're navigating some choppy financial waters, so let's chart a course through this.
Based on the most helpful WSO content, here are a few nuggets of wisdom for your situation:
Career Trajectory vs. Immediate Compensation: It's not uncommon to take a short-term pay cut for a long-term career gain. If the buy-side role aligns with your long-term interests and you believe it offers better growth potential, it might be worth the temporary financial setback.
Contract to Full-Time Conversion: A six-month contract without a full-time guarantee does add risk to the equation. You'll want to weigh this risk against the potential reward of breaking into a top USA BB on the buy-side. It's also worth considering the stability of your current role.
Sector Interest and Skills: If the new role is in a sector you're passionate about and leverages your unique language skills, it could be a strategic move that sets you apart in the long run.
Firm Prestige and Network: Moving from a regional shop to a top-tier firm like GS, JPM, or MS could significantly enhance your resume and open doors in the future. The prestige and network of a top firm can be invaluable.
Personal Financial Cushion: Can you comfortably absorb a 20% pay cut? Assess your personal finances to ensure you can handle the decrease without undue stress.
Negotiation: Have you tried negotiating the terms of the contract? Sometimes there's wiggle room, especially if you bring unique skills to the table.
Remember, the grass isn't always greener on the other side, but if you've got the right seeds (skills and passion), you might just find yourself in a lush financial garden down the line. Keep your spyglass polished and your treasure map handy, and you'll make the right choice for your career voyage!
Sources: Would you take a step down in title & pay for dream job?, When to jump - Advice on switching jobs, careers, and fields, https://www.wallstreetoasis.com/forum/real-estate/when-is-a-move-not-a-lateral-move?customgpt=1, It’s Time to Leave My Firm (A1)... How Do I Lateral?, When to jump - Advice on switching jobs, careers, and fields
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