Which job pays the most in the long run, finance, consulting or tech?
Tech hours are amazing and if you work in Silicon Valley you can make 150k out of undergrad which is the around the same for IBD Analysts. But how do the salaries change over time? Is there more income potential in Finance than in Tech?
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For tech, if we only consider the preftigious tech companies (i.e. your Googles, Ubers, FBs, Amazons etc) to make things like for like - outside of the top end of the tech market engineers/PMs get paid peanuts in comparison. A new grad product employee (PM, SWE, Design etc) at one of these companies can pull in anywhere from $130-180k "recurring" total comp - ignoring signing bonuses - comprising of base, bonus and stock grants vesting that year.
The terminal level (i.e. where there is no longer an up or out policy) that most companies enforce you to reach within at least five years is the Senior Engineer (or Senior PM etc) level. This is a mid-level position in the technical ladder. Market comp at that level is ~$250-400k. Most technical people stall out here whilst a very few progress either into management or the upper levels of the technical ladder. Market comp at the higher levels of the technical ladder does get very significant, a staff engineer can pull $400-500k, senior staff $500-600k+, principal $600-900k+ and at the very top $1m+ but we're talking about the top 5% (top 1% for the very top of the ladder) of engineers at a place like Google. The vast majority of this comp comes from RSUs and bonuses. Because of this, people who "stall" can still see comp gains as the value of the company increases.
Aside from this, you of course have your rare instances of companies buying out engineering teams as "acqui-hires" on very high RSU packages and the few lucky early employees that cash out.
So overall, the average engineer at a top tech company does well and pulls in what an associate in banking would make or a manager in consulting would make but without the hours or travel. I think a talented engineer who rises through the engineering org can end up making the same as a good financier/consultant who makes MD/Partner. Although the absolute ceiling for comp is definitely higher on the buyside.
That all aside. These are vastly different career paths and what it takes to be good at one (e.g. software) doesn't really overlap with banking. I'd sit down and consider which paths align best with your interest, future perceived lifestyle and ability. It's all well and good saying you want to do banking but you get dinged everywhere or tech but you can't pass a coding interview to save your life.
Just like only 10% of Bankers make it to MD.
How higher is the ceiling for comp on the buyside?
Well, you have guys pulling high 7 to 8 figures from carry/profit-share if they produce extremely strong returns at firms with large AUMs. Or people branching out and making their own funds after building a track record.
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