A bit of a self-serving question here. But I’ve been in ER for 2.5yrs now (1.5 at BB and 1 at MM), and have an additional 3 years in my relevant industry.
I've been a Senior associate for the entire past year and cover 3 stocks ~ $10bn mkt cap. Just wondering if this is enough for me to make a case for VP this year. I have good client relationships as well, if that’s a question to come up.
Otherwise what’s a good rule of thumb for stock coverage of a VP candidate?
Based on the most helpful WSO content, the number of stocks you cover is just one aspect of being promoted to VP in Equity Research. Here are some key points to consider:
Stock Coverage: Covering 3 stocks with a market cap of around $10 billion each is a solid start. However, the number of stocks isn't the only factor; the depth and quality of your coverage matter significantly.
Client Relationships: Having good client relationships is crucial. Strong relationships can demonstrate your ability to generate revenue and add value to the firm, which is a key consideration for promotion.
Experience and Tenure: With 2.5 years in Equity Research and an additional 3 years in your relevant industry, you have a substantial amount of experience. Being a Senior Associate for the past year also shows progression and readiness for more responsibility.
Mentorship and Training: According to a VP in Equity Research, seniors who take the time to train and mentor are highly valued. If you have been involved in mentoring junior analysts or associates, this could strengthen your case for promotion.
Networking and Stock Picking: Demonstrating an interest in stock picking and networking within the industry can also be beneficial. If you have been actively involved in these areas, it can further support your promotion case.
In summary, while covering 3 stocks is a good start, your client relationships, experience, mentorship activities, and networking efforts will all play a significant role in making a strong case for your promotion to VP.
Sources: Ask a VP in Equity Research anything - 2018 Edition, Ask a VP in Equity Research anything, Ask a VP in Equity Research anything - 2018 Edition, What makes a good short?, Ask a VP in Equity Research anything
I had been under the impression it was unusual for a non VP to be covering any stocks, but clearly it is different at different banks.
I think what makes it tough is only being a senior associate for a year, and only having 5-6 years of overall work experience. I feel like you would be an obvious VP promote next year but this year feels like a stretch for those reasons despite seemingly doing a VP job.
It is worth having the conversation with your DOR/whoever in terms of what it will take, but I would keep my expectations very tempered for this year.
What it takes is backing from your senior analyst and sales. I made VP only covering 1 stock, more on the strength of the work I was doing on my lead analyst's large caps and my client time and sales relationships. (My coverage grew to four over the next ~12 months.)
Sure, that is kind of the inverse of what OP was asking about though. There are plenty of VPs who don’t cover stocks if they are great associates and well liked by senior analyst/sales/etc. I don’t think there are a lot of non-VPs who cover stocks, like the OP.
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