What are the typical starting salaries for Equity Research Associates on the West Coast?
What kind of base salary and bonus can you expect for Equity Research Associate positions on the West Coast? Are salaries higher if you get into ER post-MBA?
Associate roles, which are entry level on the buy side, typically have a salary of 65-75k to start plus a bonus of 0-50%. You get small increases in salary but the real delta in years 2-3 is the bonus. Most firms also have a profit share arrangement which adds another 10-15% to your total comp. So all in comp is around 85-125k.
Post MBA salaries are generally 100k-135k, closer to 100k for smaller firms or firms located in low cost of living cities. Bonus range is usually 50-100% in the first year. Same profit share arrangement as with associates.
I understand the hierarchy in the IB world - Analyst, Associate, VP, Director, MD and so on. But the career progression in ER is not quite clear to me. I'd appreciate it if you could elaborate on this a bit.
Thanks for the great info! It's great to see region-specific data points.
On a related note, I was wondering if you could comment on what the compensation and entry-point would be for someone trying to move mid-career into ER (starting on sell-side most likely) like myself.
I don't have an MBA, but do have a CFA, and 4-6 years of strategy and corporate finance (treasury) experience. I'm very interested if I'd be bucketed more as a post-MBA associate, or a post-BS/pre-MBA associate.
Appreciate any insight you might have!
This has been described many times before on here. I encourage you to look up previous threads. The progression is generally:
Associate - entry level position (0-4 years experience) Analyst - experienced position (3-5 years experience) Senior analyst / director / VP - an experienced analyst (5+ years total experience)
There are all sorts of variations on the above. Some firms have "senior associates" or "junior analysts." Title has really become less meaningful because firms play all sorts of games with it. Experience and responsibility are what matter. In general, associates are doing entry-level work such as putting together models, reading 10-Ks, etc. Analysts are generating ideas, travelling and meeting management teams, and directing the associates.
The culmination of an AM career is usually, but not always, a portfolio manager position. However, some analysts are content to remain analysts and simply be experts on their field. These analysts can still make millions per year.
Post MBA is almost always an analyst.
I think it would be difficult, though not impossible, for you to get an analyst role without doing a MBA program. A post-MBA analyst position has a lot of responsibility and you would be expected to hit the ground running. You could be a candidate for a junior analyst or senior associate type role without going the MBA route. You would have to network and demonstrate a lot of interest in investing.
I would focus upon making yourself a good candidate for the role rather than how much it will pay. This industry pays well, that's why there is no shortage of people trying to enter it.
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