Associates who stuck around for > 5 years working for the same analyst. Why?
I’m aware ER doesn’t have a consistent and transparent promotion trajectory. In a few years, one can develop enough sector knowledge. However, promotions are slow as they sometimes also depend on your analyst’s career moves. Many associates move to IR or buy-side after a few years. What makes you stick around for several years if you’re not given autonomy and personal identity in terms of coverage, client relationships, or corporate access? What is the incentive for growth?
If you're attached to a top ranked analyst and your boss gives you client exposure, you can have your own franchise without having specific stock ownership.
I've seen EDs/senior VPs with situations like this. As long as management appreciates it and the clients know it and you get paid accordingly, who cares really.
Better to be an well known associate under an analyst covering apple than an analyst on some small cap.
You make a fair point. Also, have you seen those seats in BBs or boutiques?
IMO, analysts naturally don’t want their associates to be having a piece of their pie. Structurally, those interests are meant to clash.
Yes I have seen those situations at a BB - literally at my shop (although in Europe this situation is more uncommon, associates get coverage quite early).
I mean realistically an analyst cannot service all the possible clients they could have.
Also the analyst cannot realistically do all the work on a stock, come up with all the ideas on big stocks.
Someone has to own that missing piece. That person can make a name for themselves in the gap. Obviously your analyst needs to support you in this though but I'm just saying the incentives don't have to clash. Also in terms of being competitive for votes (extel or broker votes), there's individual votes and team votes. Hard to be a top ranked team if only one person is getting ranked. An associate can't be ranked if they're not getting any client time.
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