equity research department is considered a cost centre for the bank, so they don't get "big" bonuses, unlike their counterparts in corporate finance/M&A, which are the revenue centres for the bank.
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Cost Center? Not exactly.
Define big bonuses? Top analysts are making over $2 million, top associates at bulges are making $300k+
And that is primarily working between 7am and 6pm. Spent 6 years in equity research 3 at a BB and 3 at a smaller shop. I can count the number of times I was in the office past 9pm on one hand.
Not a bad way to make a living.
could be ture
Our top analyst cleared nearly $10 mm in his best year so there's certainly some money to be had. On average it's maybe not as much as banking but you'll still be able to pay your rent. Only issue in ER is there are way more MD's then analysts and analysts don't seem to move around quite so much.
Going by a strict definition of "ture," and given the possible things you described in your post, Im going to have to say I see no correlation between this and ture.
I'll second what skibum said. I rarely work more than 60 hours a week and very rarely work weekends. I get paid the same base as IB analysts with the same experience and my bonus will likely range from 50-100% of my salary. While an IB analyst/associate with equal experience will likely clear 20-50k more than me, I'll have worked 1-2000 fewer hours over the course of a year. There's no price to that. The only rational argument I can see for one choosing IB over ER, at least at the BB level, is for exit ops. They are materially better for IB because there is a clear roadmap to PE and to some extent, HF jobs. Exiting ER can be a tricky situation but top PE/HF jobs can also be had. None of this holds for boutique ER because salaries and exit ops are not at parity with BB's.
Its pretty variable pay but at least one ER associate at my bank gets paid pretty close to what an IB associate of equivalent experience makes (street). Then again they work pretty similar hours (only ever worked here so I assume this is an exception).
Pays great, hours are livable and ER is a necessity if you want to be in the sell side equity game.
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