Unironically - ER is a paradise
I left banking after a year and got into equity research (same bank) and god what a move. The work itself is more enjoyable (though miserable, bc I know no one will bother looking at it). I gave in to the tendentious denigration of ER on this site, and it was a mistake. The work isn't dull at all (I'm London based).
The hours are just something else. There's so much I can fit into the day. Free time is priceless. It's been 2 months, I managed to read 5 books, all investing classics. Keeping this pace I'm hoping to develop a decent investment acumen to move to the buy-side smoothly and add value. This was my biggest concern in continuing in banking, there was just no time for me to grow intellectually. I would've been wallowing in inertia had I not left.
Also I was getting fat. The consistency of timing has made it possible to work out at 5AM daily and make plans for healthy dinners everyday. And having all weekends for myself is such a blessing. The work doesn't stop when you leave the office, if you're passionate about what you're doing. But life can still go on. Less frat bros, more interesting humble colleagues.
I don't mind my bonus getting cut in half. I'm optimistic that doors to the buy-side will remain open if I put in the effort.
Best kept secret on the Street, glad you've been enjoying the gig.
Lots of armchair judgement is thrown on this site about ER - mainly due to the fact that there are 50 IB guys for every 1 ER guy - who do you think will have the louder voice?
Of course IB is paid a premium to pretty much all other non-quant jobs but it comes a significant cost to your mental and physical well-being. For most functioning humans, ER is well worth the pay cut: better work/life balance and more interesting/cerebral work.
Most will learn this after their groupthink IB stint when they realize they're not willing to sacrifice their kidneys to make 25% more than their ER/S&T peers. If you're interested in the public markets (which I'd imagine most finance-background people would be?), ER is a solid place to be. More balance and longer stability, all while keeping options for a hedge fund or asset management firm still open.
Can't speak for VP levels but for analysts its like 20% less than IB post-tax --> $100k for BB TMT ER vs $120k for BB mid-bucket IB post-tax.
ER comp will definitely vary more depending on the bank, sector, and analyst (ii ranked or not)
For what it's worth, I made 135K all-in my first year out of Uni in research... the notion you don't get paid isn't true. I'd expect a 60K bonus at least on top on my 115K base this year. I think it's a great gig.
Don't forget that these armchair voices are mainly prospects or analysts as opposed to experienced older professionals.
The ONLY issue with ER is that it is completely analyst driven. If you've got a dictator for an analyst, the lifestyle is absolutely miserable. But I'm hoping as some of the boomers retire out of ER, the new wave of analysts will have a better personality and bring forward the best parts of the job.
Lol. Ok, now you make it sound like a corporate job.
Against IB, everything is an easy comparison.
Agreed. BUT, it's important to have a lil burn out here and there so you don't slack
burnout builds character
True, as long as multi manager hedge funds are in business, ER will have to serve them with quarterly channel checks unfortunately.
There is always a catch to every job - nobody likes everything about their job - and the quarterly hyper-focus is surely that with ER. However, quarterly earnings work is still more favorable than whatever deal you'd be forced to churn out if your were in IB. Plus, not all of ER's client base is short term - there are several LO AM firms that consult with ER teams and the like.
Spent 4 years in ER before moving to PE so that avenue is still open despite what all the college students on this site may say as well.