Let's be honest, most of us will never make MD. Whether that's because we end up going buyside first, hop to industry to pursue a more lax lifestyle, or leave finance in general.
What does VP comp look like at the EB/BB/MM's? Interested in how this can compare to Corp Dev, Strat & AM comp.
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Hi Analyst 1 in IB - Gen, just trying to help:
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If those topics were completely useless, don't blame me, blame my programmers...
Think if you're not a covering analyst, comp tops out in the high 200k/lower 300k range at most shops. This is probably higher if you cover a few names yourself
There are VPs without coverage??? Is this a US thing? This is practically unheard of in the UK.
My group actually is that way. Covering Tech, there is a lot of data coming from a handful of stocks. As a result we have a couple MD's that cover 8-12 each and then a few VPs underneath them who are helping them with the coverage. Honestly, I think it's just a result of them not having any coverage they could possible pick up, yet they have been with the firm for a long time.
I think this is semi-common as guy above said (UK), although that I've seen usually in 'important' coverage sectors with giga-market cap names. Basically in spaces like the oil majors it's entirely possible to have only the MD with coverage and a VP supporting them, and the coverage brings in so much money that the bank is willing to shell out for what is effectively an extremely expensive associate (because you can't have Johnny The Junior shitting the bed on updating the BP model).
Not ideal to not have a path to coverage since your MD will never give up those names, but also not necessarily a bad situation career wise -- the VP supporting on Exxon probably has much better prominence with clients/better career prospects than the VP covering 4-5 names in an unimportant subsector (paper & packaging anyone?). I work on a smaller sector and that's how I feel sometimes anyway, can't speak from experience.
Would Echo this, average probably mid to low 200's for non covering from what I've seen but for hot sectors can top out low 300s. Generally VPs cover at least a few names.
Corp Dev pay: Director: Total compensation of ~$300K – $400K, with a higher percentage from the bonus and stock (over 50%).
VP or Head of Corporate Development: Total compensation of $500K+, perhaps approaching $1 million depending on bonuses and stock-based compensation.
All else equal, looks like you might get paid about the same as in ER, with ER having the edge to career progression. Probably would expect to wait 15-20 years to become Head of CD at a respectable firm, and that may never even happen. At least if you stick it out in ER, you will have opportunities to make MD by 40 where you at least clear $400k if you're mediocre.
Basically boils down to how good is the WLB in ER at the VP/MD levels. If you're still working 60+ hours, then CD is much better lifestyle for the pay. Another thing about CD is that the stock based compensation is only as good as the company you're working for is
Is the compensation for a VP in ER highly dependent on the firm? I am asking because, especially with recent raises, it seems some 2/3rd years in my firm make close to $200,000 all in all. It's hard for me to imagine someone only adding another $200k remaining at the firm till 40. Especially given how intensely i've seen hedge funds recruit at from my firm.
Just a data point, a reputable recruiter reached out to me (HC space) for opportunities on a few ranked teams, and the high range I got from them was ~$450K all in for associates. This seems reasonable because I’m already hitting $200K as a first year associate and cover no names. I’d imagine the VP on my team to be pulling at least $400-500K range because they have coverage. Granted it’s a hot sector and we’ve been helping out on a lot of launches.
That’s a lot higher than I expected. Are you post-mba?
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I could only imagine $450 for an associate in something like biotech or a sector that requires deep barriers to entry. What sector if you don't mind me asking? Even stuff that's generally sexy like semiconductors, fintech wouldn't pay that much (atleast I don't think for associates)
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