Title says it all. I’ve been working in SS ER now for a bit under five years. While many in the associate class that I started with have transitioned over to the buyside, most I know who left early on are now all either in corp dev or in LO AM, with one even returning to the sell side (in a lateral move so now about a year or so behind where he would’ve been in career progression had he never left). Though I’ve had the opportunity to leave to quality LO shops and have been recruited for some pods as well, am I stupid in thinking that SS ER is the dream? Yes we have earnings four times each year but that’s part of working in public equities. Outside of earnings I would anywhere from 30-50 hours per week, have an awesome work life balance for high finance, enjoy the different day to day tasks ranging from client calls to modeling, and have a direct path to taking over my own list and a 500K+ base salary and potential for low 6 figures all-in within the next five years (I’ll be roughly early 30s). I understand the buyside pull- I’d love to be making 250k instead of 150k. But the upside is almost the same unless I move to a top LO shop while the hours are worse and I have an awesome gig at the moment on the SS. SS research often gets overlooked but I feel as if it’s one of the best kept secrets on the street. Would love to hear from other current and former SS associates or even outsider prospective views on SS ER.
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Well firstly I'd say your experience in SS ER is a bit unique for several reasons:
Most sell side analysts are working more than 30-50 hours a week outside earnings. Pretty much every junior I know in BB SS ER is clocking 55-60 weekly. More during earnings (although I'd say my hours during earnings aren't *that* much more egregious). Some people might be getting away with 50. I can confidently say no one is doing 30 hours, that barely even covers market time.
SS ER analysts are generally earning more than 150k at 5YOE.
500k+ base sounds high, even if you're implying a junior MD seat. Total comp is of course doable.
Is ER the best kept secret? No. I think people know it exists but the job has very real drawbacks. Most people who are in ER long term are in it for love of the game, not because it's the "best" all round job.
So basically what I'm saying is I think *you* have a great, unique setup. But you can't necessarily extrapolate that.
I really appreciate the insight. To be clear the 150k vs 250k was referencing the junior associates who left around year 2 or 3 which seems to be the norm for those who don’t stay in for a career.
Fair enough. Tbh that section of your post, around money, is it incredibly confusing to read.
Would not agree on hours outside of earnings but yes on everything else - great job w great exposure, and at least anecdotally much more longevity vs other finance careers
I tend to agree with this. Im at an MM and know multiple teams that work 45-55 hour weeks regularly (mine included). However, I think we all have more established senior analysts that are cruising now. A few associates under younger MDs are never sniffing a sub 55 hour week. Earnings really isnt that bad with hours probably around ~65-70.
Pay is good. Hours are great. Little to no weekend work. Interesting work. Exposure to c-suite. Solid exit opps. I’m not complaining.
What sector do you cover and how does comp scale from associate to Md?
This is an awesome write up and I’m super interested in breaking into ER. I come from a military background so I have limited (read- no) financial experience, but I’ll be attending an M7 in the fall. Think there is an opportunity for me in ER?
yes, absolutely. M7 is more than enough and know plenty of research folks with military background (FWIW, I think a few banks maybe UBS have military veterans associate propgrams)
Awesome! Any recommendations on how to set myself apart and utilize the time I have between now and beginning in the fall? I’m thinking CFA L1.
How receptive is ER typically for IB and S&T laterals? How much of a risk do you think automation is compared to other areas of finance?
Very receptive from what I’ve seen. But lateral positions for ER are a crap shoot
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