Per title, IB associate and I want to be in the public markets. I’ve wanted to since I joined the industry. Issue is, I cannot afford a step back in base to $150k. My next bonus will clear some of those issues up, but need a realistic comp idea of what the first three years at a pod shop look like.
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Based on the most helpful WSO content, transitioning to a public markets role, such as at a pod shop, can be lucrative, but compensation varies depending on the firm and your performance. Here's a realistic breakdown of what you might expect in terms of compensation during your first three years:
Base Salary: Typically, base salaries at pod shops for entry-level roles in public markets (e.g., analysts or associates) range from $150k to $200k. This aligns with your concern about not wanting to step back significantly in base pay.
Bonus Potential: Bonuses in public markets roles are highly performance-driven. For strong performers, bonuses can range from 50% to 200%+ of base salary, depending on the pod shop and the fund's overall performance.
Total Compensation:
Keep in mind that pod shops are highly competitive, and compensation is tied closely to your ability to generate alpha. If you're confident in your skill set and can demonstrate a strong track record, the transition could be financially rewarding without a significant step back in pay.
Sources: base/bonus 1st year analyst at HF, 5 ways a career on WS is not what it used to be, Q&A: Top Quant Firms First Year Comp 250k to 400k, 2018 Investment Banking Report: 8 Trends in the Industry, 2023 Base Thread
lol
“I have no investing experience whatsoever, but also you have to pay me more than any entry level public side seat”
Even if the base were $200k, the risk of losing your seat is very elevated.
Need for stable earnings and HF role never marry well.
How do you guys afford nyc in public roles?
Bro if you can’t live in NYC off a $150k base, you are living above your means or have horrible spending habits. Either cut back on spending or stay in IB bc no public markets role is paying above market for someone with no buyside experience.
My understanding from anyone I have ever dealt with in the pod shops / public markets investing is that if you are even asking about a base salary, you may be knocking on the wrong door.
Base salaries are for corporate jobs doing corporate work. The public markets are for investing and the upside generally takes time. It’s not playing the lottery.
That said, good luck. I hope you succeed
Agree with most of what you said, however pods jobs especially, are just playing the lottery...
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