This is not a whining post - I'm genuinely curious as to when the income disparity between SWE and high finance levels out, both in $/hour and annually. Working in SF made me realize how much more SWEs make - it's almost absurd how much they get relative to other jobs. I have multiple software engineering friends clearing 200k+ 1 year out of college with a smooth ramp in promotion cycles and pay. Granted, I would imagine that plenty of that is in stock, but still, base pay ranging from 130k-180k is still multiples more than what any other new grad would make right out of college, no matter the major.
I'm frustrated at the amount of hours I put in for the apparent lower ROI. Yes, I understand if you're a top PE partner or C-suite individual you can reap the dividends of your labor, but realistically the amount of people who make it that far are a handful compared to the thousands clearing 400k+ as level x SWEs. Is this the proper way to look at it? Or is there is something I'm missing. If not, I'm going to give up studying for the CFA L3 and start grinding towards improving my hackerrank and my coding skills.
The short answer is the one everyone hates: it depends.
To summarize as briefly as I can, there’s a big culture difference between FAANG (this includes other firms, including Twitter/ AirBnB/ Snapchat/ others that pay well) and what I know of IB/ PE/ finance from reading on this forum. The reality is that choosing a career for the ceiling is quite stupid. Not saying you can’t reach it, but you don’t reach the ceiling because you’re purely motivated by money.
A lot of people compare SWE to PE Partner. That comparison is dumb at best. Are there terminal SWEs at L5 who stay there? Absolutely. Like the many VPs who are stuck. Is that going to be you? Maybe. Maybe not. Even if not, the amount of money you can make at the top of your game in any field is absurd. Joe Rogan out earns everyone on this site. Why don’t we all host podcasts? Technically the ceiling is some ridiculous number.
Now for the answer you really care about: SWE at a top firm can pay extremely well. Some (read “very few”) Tech Leads clear 7 figures. Most don’t. Some do. People move up in these companies and the pay is more than you can possibly spend. Truth is, both careers can earn you more money than you need. Even if you want this amazing home and the McLaren, you can afford it if you grind away at these two careers eventually. Getting there quickly is another question altogether.
Check out https://www.levels.fyi/</a">levels.fyi if you want numbers. It’s known for being pretty accurate.
TLDR: You have an easier life and can make comparable (or more) pay in tech at the junior and mid levels. In the senior levels it varies a lot from person to person, but tech can pay as much as finance. Comparison of ceilings are foolish because both are in the billions. If you’re the type to make it to the C Suite at a PE Fund or Bank, you’re likely the type to be C Suite at a tech firm too. And you don’t make it to the C Suite chasing purely short term money, it’s a lot of politics and planning involved.