Reasonable Comp Progression
I’m currently in SS ER getting overworked and underpaid relative to peers, so I’m exploring new opportunities both within and outside of public equities. I enjoy the nature of the work but dislike the long hours and “extra work” outside of normal hours associated with the career (CFA studying and exams, stock reports for applications and week long case studies for interviews, and the constant need to be always thinking about the market to be considered good). I joined SS ER with aspirations of buyside and pretty frictionless path to $350K-$400K with only needing 5-6 years on the job if you are able to transition to the buyside, which is a big if but I’m sure SS could reach $250K-$300K as well.
I’m considering Strategic Finance/Corp Fin/related roles because I think the work is interesting and I’m pretty sure I would be good at it based on previous internship experience. My big hesitation is the comp progression with this career. I don’t think I would be taking a big if any paycut to move at my current level, but I fear that it would take much longer to reach the ~$300K TC and the opportunity cost of giving up a much faster path to that comp level is pretty big.
I’ve seen the TC for different levels for Corp Dev and I’m guessing it’s similar for strategic finance roles but I am not familiar with the titles matching up to years of experience.
I guess I’m asking how does comp progress from the associate level (~3 years of work experience, none on the job) to someone with 5-6 years of experience on the job? It wouldn’t come close to $300K TC, right? Also, I’m guessing that there are only really small bumps each year until promotion years rather than smoother, gradual increases?
Based on the most helpful WSO content, here's what you need to know about comp progression in Strategic Finance/Corporate Development roles:
Compensation Progression:
Reaching $300K TC:
Pay Increases:
Comparison to SS ER:
In summary, while Strategic Finance/Corp Dev roles may not match the rapid comp progression of SS ER, they offer a more predictable and balanced career path. If your primary goal is to hit $300K TC quickly, staying in SS ER or transitioning to the buyside might be a better fit. However, if you're prioritizing work-life balance and long-term stability, Strategic Finance/Corp Dev could be a solid choice.
Sources: Corporate Finance Q&A with accountingbyday, BJM85, STorIB, and djfiii, Compensation Structure at the mid-management level in Corporate Development / Strategy / Finance, The Other Road: Corporate Development Associate Fielding Questions, Salary progression for F500, Salary progression for F500
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