Got an offer for a F500 IR role that includes some FP&A responsibilities and am in final rounds with another F500 Corp dev role. Similar total comps ~300 all-in. Which one offers better long term prospects? Any advice from someone who has transitioned into one of these roles would be helpful. Alternatively, I could grind another 2 years and try to make D before exiting. Is this a better option?
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I can’t comment on the roles but I don't suggest sticking around 2 years to make Director when you have no intention of staying in banking.
It may not be intuitive but it can actually get harder to exit the more senior you get unless you bring something truly differentiated to the table.
My perspective would say IR hands down considering it's a more high-profile, exclusive and "fun" role given the wining/dining, C-suite exposure, smaller-teams and perhaps transfer-ability to other areas of the corp – although I don't think there is an increased comp differential versus Corp Dev that reflects this outside of maybe a bump in SBC. Some Corp Dev teams might even comp more if it's a very acquisitive sector? However, IR is smaller, so it may be easier to move up and be promoted. Would love to hear others perspectives I could be wrong.
One important thing that I do know for sure is that Corp Dev will attract a IB/PE crowd and the personalities associated with that whereas IR is mainly those from a ER/HF background. I think most people would rather work with (and frankly hangout) with the latter crowd.
+1 to this. Briefly talked to the preson who head IR at an internship I did at a tech company. Day to day of their job sounded very fun / engaging.
Great comment.
Do you want to do deals or talk to investors all day? No wrong answer. While I liked some IR work I did as part of another finance job, I didn’t want it long term because I didn’t think most IR folks had a big strategic impact - more so focused on relaying the story rather than helping create it or at least supporting it in a tangible way. It’s a lot of time answering similar questions, and then before you know it it’s time to prepare for another quarterly conference call with the deck, prepared remarks and prepping for Q&A. However, the exposure to FP&A could be quite valuable and makes the role more dynamic.
The above is just based on my experience at a small public co. I think the downsides or challenges of Corp Dev are probably a bit more obvious since you’ve been in banking.
How did you land the interview? LinkedIn?
Network with ex bankers / PE guys in corporate - they will know your skillset and be more willing to use you in non-M&A functions (FP&A, IR, strategic finance).
If you're looking for PE portco roles, reach out to the usual PE headhunters and tell them you're interested in transitioning to an operating role at a portco. They'll send you inbounds for corp dev / strategy / finance roles.
Thanks
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I would go with the IR / FP&A role. FP&A isn't sexy at all but it is the core skillset required to be a CFO. If you can get some experience doing that, it will round out your M&A background and make you an interesting candidate for CFO roles in the future. A lot of ex bankers / pe guys aren't able to progress in corporate because they don't have the unglamorous skills required to do the basic functions of being a CFO (FP&A). Do it for 2-3 years and then immediately start looking for more senior finance positions where you can delegate budgeting / forecasting to other people vs. doing it yourself.
Might get downvoted against this and will freely admit this will depend on how much you want to leave IBD.
However, would say it makes sense to wait for the Director promotion and see if you can get any of your clients to offer you a position. I have gotten VP-level offers across from respectable corporate and sponsor-backed clients 2 years into my D stint at a lower-tier BB and am leaving to one. Much more responsibility in those roles and real ability to make outsized money with stock options. Offers from the Director level or MD level are often from clients, though, and will vary wildly; I probably would not get VP level offers as a D2 outside of coverage niche, and even if I did, it would prob come in at a lower title.
Just curious: What titles are these positions? Never really tried to recruit out as a VP and would love to get some data on this.
From my experience, it’s VP equivalent and I honestly wouldn’t take anything less knowing how long it takes to climb up the ladder. It also depends on how the titles are structured. Generally the head should be SVP, but in some companies where there is EVP title than I think the VP title is less influential. Ultimately, pay will be a good gauge - for them to offer >250k base, they generally need to hire you at a level just below the head of IR or Corp Dev
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