MM Equity Research--Concerned
I'm posting because I have accepted an offer to intern on the ER team of a MM bank, but based on others' posts that I've seen, I'm not sure how I should be interpreting it. For context, I'm entering my junior year at a target school in the Midwest, where this firm is headquartered. Teams are lean (3 people max), so I would get tons of experience from the get-go. Total first-year comp would be 85-90k, which seems below market pay to me. I understand there are certain sacrifices in doing MM ER vs. BB, but this is a pretty significant drop-off. They offer to cover all CFA costs + MBA tuition incurred while working there, which is helpful, but I'm really unsure about my next steps forward.
Return offer rates from the internship to full-time are quite high, so I have jumped to considering how I would respond to a full-time offer despite my internship not beginning yet. Does anyone have thoughts on this? If you were in my place, does this sound like a reasonable offer? Thanks!
You just got an internship for next summer and cant start full time for another two years. So much can and will change and its not worth stressing over an offer you don’t have.
That being said, is $90k in a LCOL city below market? Seems pretty good to me, but Im only familiar with NYC. 3 people on a team is normal. Wouldnt call that a lean team. BB vs MM in ER is somewhat irrelevant. It depends on your analyst
Thank you! I know I'm being premature with this, and you're right that a lot can change, but I appreciate the reply. I am graduating early and would intend to start work upon graduation so I guess that made the start date look a bit more intimidating to me. The teams are typically two people--only a few have three. A few analysts at the firm have mentioned that their comp can be perceived as a bit low, so they planted that below-market seed in my mind I guess. Thanks again!
Congrats on the internship by the way
Tell me you’re working at Baird without telling me you’re working at Baird
Yes I’d try to find something better than Baird. When you hear the term “home grown analyst” it means they’re cheap, likely aren’t well regarded, and the bank doesn’t care about research outside of banking deals.
Most of the good analyst there leave. By analyst I mean heads of coverage.
When you say "find something better", do you mean for full-time? Are better-regarded firms willing to recruit someone for full-time with intern experience at a less well-regarded one?
Keep the internship obviously, but try to parlay it into something at a better bank FT. Idk how to do this. Worse case take th job and get all exams passed, then try to move
What target school is near Baird?
Notre dame / u Chicago / northwestern to name a few
$80-90k in Milwaukee/Chicago is like $150k in NYC, you are fine. Baird is one of the top research shops for small and mid cap stocks.They have good research, you will get good experience and learn what you need to learn. You will be able to parlay the experience into another sell-side shop in NYC or Chicago after a year or two if you want. I would relax. Your work-life balance will likely be better than a bulge bracket bank. LT it ultimately depends if you want to live in NYC or not. Pros and cons to both. A Baird or RayJay isn't as big of a step down from a lower tier bulge bracket as you think in ER. You still get great access to the companies you cover (smid caps) and still are relevant for every big investment shop you can think of. You aren't the axe on say Nike with 20 analysts covering it, but you can be for a company like Academy Sports for instance.
I do not work at Baird, worked at a bulge in ER - but I see there work from the buyside perspective/talk to their analysts regularly. A friend of mine works there but has gotten multiple offers to move to NYC and join a bulge in ER, prefers his situation balancing work/life balance and upward mobility. Personally, I think top middle market banks like Baird/RayJay are great spots to be for sell-side, you get paid relatively well for a better work life balance and lower COL, are a top expert on the small and mid cap stocks, and don't have to deal with the bullshit of II. I hated all the stupid II related stuff and politics around it at the bulge I was at. Middle market guys don't care, they just put out good research and the analysts seem much happier and less insane than bulge analysts.
It’s not a good shop
Care to elaborate?
Do you know your group!
.
Pay may be below market, but cost of living can be considerably cheaper in many cities. I started a year or two ago at a smaller firm, similar comp structure. 90K in Midwest can feel like 120K+ in NYC. Really depends what you want. I appreciate living in a less "busy" city compared to NY. But to each their own. Best of luck!
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