2024-2025 Risk Management Compensation
As a D1 at a BB in NYC, my personal compensation was:
$250k base + $137.5k bonus = $387.5k total
Total comp ranges below for NYC:
Analyst: $90k-$120k base + $15k-$30k bonus = $105k-$150k
Associate / AVP: $120k-$150k base + $25k-$50k bonus = $145k-$200k
Vice President: $150k-$225k base + $30k-$75k bonus = $180k-$300k
ED / Director: $225k-$275k base + $100k-$225k bonus = $325k-$500k
Managing Director: $250k-$450k base + $350k-$750k bonus = $600k-$1.2mm
seems more solid than i realized. what are your hours? also what are career prospects in your team without significant quantitative skills?
I work a solid 40 hours, but 50 is probably more typical. I came in through a quant role and some trading experience which has definitely helped but there are roles for less quantitative folks as well.
Is MD in this role a group head equivalent that’s mostly managing people?
The MD comp seems too high unless it’s supposed to be a chief credit or risk officer type of role - which are very few at each bank
It is definitely more difficult to make MD than in IB or trading for example, and the MDs are all managing some sort of group, but we are not talking head of risk or necessarily head of a department or anything. Maybe to clear the high end. Yes your random MD is risk is almost certainly making $600k+, probably not $1mm.
There is a lot of compression between these roles and FO roles for a couple reasons IMO:
Now that's the bull case on risk, on the bear side:
For me it's mostly about the work/life balance. I am not the IB type at all but even if I was I would probably kill myself if I worked 80 hour weeks. I could realistically go back to quant or maybe even trading and likely make more money but even that would be a downgrade from a WLB standpoint (there are quant roles where the difference wouldn't be too bad, but then the pay bump wouldn't be that great either).
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