Comp progression in biotech ER on SS?

Based on the most helpful WSO content, here's what you need to know about comp progression in biotech equity research (sell-side):

1. Current Comp and VP Expectations:

   • At 2 years in with a PhD background and ~$250k total comp at a BB, you're already in a strong position.
   • Upon making VP, you can expect a bump in base salary and bonus. For example, MBA associates in ER typically make $125k-$130k base with a $30k-$40k bonus in their first year, and the next significant increase often comes at the VP level. VPs in ER can see total comp in the range of $300k-$400k depending on the firm and performance.

2. 3-5 Year Horizon:

   • Progression in sell-side ER can be slower compared to other fields like IB. While comp increases are often driven by promotions and base salary adjustments, bonuses may not scale as dramatically.
   • A senior VP or Director in ER could see total comp in the $400k-$500k range, but this depends heavily on the firm's structure, your ability to generate revenue, and market conditions.

3. Lifestyle and Stability:

   • Sell-side ER offers a more predictable lifestyle compared to the buy-side. Hours are generally around 60 per week, with spikes during earnings season, which is more manageable for someone with family commitments.
   • Job stability is typically higher on the sell-side, especially at a BB, compared to the buy-side where performance and market conditions can lead to more volatility in employment.

4. Buy-Side Considerations:

   • Moving to a hedge fund (HF) can offer higher comp potential, especially if you perform well as an investor. However, early years on the buy-side may involve a pay cut or less stability.
   • For example, junior analysts at long/short hedge funds with 2-3 years of sell-side experience can earn $70k-$100k base with discretionary bonuses, but comp scales significantly with P&L responsibility and performance.
   • The risk of unemployment and the pressure to deliver results are higher on the buy-side, which may not align with your preference for stability.

Recommendation:
If you enjoy your current role and value stability, staying on the sell-side for the next few years as you transition to VP and beyond could be a safer choice. However, if you're passionate about investing and willing to take on the risk, the buy-side could be worth exploring. You might consider networking with buy-side professionals or even testing the waters with a smaller fund to gauge your fit before making a full transition.

Sources: Transitioning from tech to a serious finance job (yes, you read that right), https://www.wallstreetoasis.com/forum/equity-research/career-ladder-equity-research-vs-investment-banking-a-definitive-guide-part-3?customgpt=1, https://www.wallstreetoasis.com/forum/hedge-fund/quant-hedge-fund-career-progression?customgpt=1, Breaking into buy-side equity research - my experience, Choosing Between Buy Side vs Sell Side in Equity Research?