What has been your total compensation progression in your career?
Does finance have a similar TC progression (80k to 575k). To me, this seems very fast compared to IB.
Definitely faster than CorpFin roles, as I've googled.Assuming one has similar career trajectory as described in the picture.
Edit: Sorry, picture didn’t upload. Reloaded:
I started in PE post GFC and now work as a PM at a HF. Comp trajectory:
Y1: 150k
Y2: 200k
Y3: 280k
Y4: 300k
Y5: 350k
Y6: 420k
Y7: 550k
Y8: 1.65M
Y9: 1.07M
Y10: 2.67M
Y11: 4M
Y12: 3.6M
Cap
Great Financial Crisis
aka 2008
While it seems unlikely (when compared to the average path) it is in line with a good/steep trajectory in the PE/HF world (the latter part of the comp). I have seen (and experienced) large increases similar to above in the HF space. If you can get to some of the senior levels (or if you can be directly tied to PnL) there is serious competition and comp pressures (and if you are tied to PnL you can have very big years). My comp was very slow moving early on (different industry to start, then a junior person at a fund) and when I started really outperforming my peers it jumped very quickly, so my years 5-10 in my career were completely different (rate of change) than years 1-5, where it is usually the opposite (fast percent increases early on and then flatten out)
Again, if you look at this relative to what average is, then it looks out of line. No idea whether this person is full of it, but you are going to get selection bias on these threads.
Y1 post undergrad $68k
Y2 $75k
Y3-4 $90k
Y5-6 MBA
Y7 $125k
Y8 $275k
Y9 $315k
Y10 $475k
Y11 $525k
Not joking:
He became an Analyst 1 in PE - Other
Y1: $165K
Y2: $200K
Y3: $280K
Y4: $360K
Y5: $450K
If helpful for another data point. All years in IB straight out of undergrad.
A1: $165k: $85k base + $70k bonus + $10k signing bonus
A2: $190k: $90k base + $100k bonus
A2.5: $105k: $47.5k + $57.5k (6 months)
Assoc1: $290k: 150k + $140k
Assoc2: $437.5k: $187.5k (base increase mid-year) + $250k
Assoc3: ~$500k: $225k + tbd
Hours have gotten slightly better but control over my hours and being able to plan my days out have become significantly better
Decided to stay in banking because I enjoyed my team, overall liked how the first couple years had gone and did not view finance as something I wanted to do forever. So figured I’d make as much as possible over the next ~5 years then leave, and banking is what would let me do that. I did talk to a number of analysts that I had started with (i.e. 2nd and 3rd years when I was a 1st year) who went to the buy-side, and I felt banking was a better pathway for my current interests and goals
Career IB out of undergrad
AN1: 70 + 50 = 120k (+10 signing)
AN2: 80 + 65 = 145k
AN3: 90 + 90 = 180k
AS0: 50 + 50 = 100k for 6 months (+40 retention)
AS1: 140 + 185 = 325k
AS2: 150 + 150 = 300k
VP1: 170 + 205 = 375k
VP2: 175 + 300 = 475k
VP3: 200 + 325 = 525k
D1: 225 + 725k = 950k
D2: 275 + 1,225k = 1.5m
MD1: 350 salary
Saw this post and wanted to provide a different perspective from someone in corporate development / finance. Won't get the insane comp of PE/HF/Banking but good lifestyle and decent comp.
Started in banking, did a year of PE and gave up on the hours and been in corporate most of my career. I started in bulge banking during 08 and went to b school after five years.
Year 1 (08): $110K ($10K sign-on, $60K base; $40K bonus mid-tier bucket)
Year 2: $150 ($80K base; $70K bonus top-tier bucket)
Year 3: PE: $190k ($90K base; $100K bonus)
Year 4: Corp Dev: $100K ($90K base; $10K bonus; 40 hour week though)
Year 5: Corp Dev: $105K ($95K base; $10K bonus)
Year 6 (after 2 years of b school): $200K (Small family office investment vehicle with a former boss from PE firm)
Year 7: $200k (same family office)
Year 8: $240K ($200K base; $40K bonus); corp dev/ finance role as family office went through a divorce so shut down private investment arm so went to corp dev/finance hybrid role in tech
Year 9: $240k (Same corp dev/finance role)
Year 10: $300K (same corp dev role/ corp fin role but got a raise)
Year 11: $340K (same corp dev role / corp fin but got another raise)
Year 12: $640K ( due to a liquidity event mostly as still $340k)
Future: $340K but hoping for a liquidity (IPO or a full aqc) . From experience most roles for me are Director, SR. Director level are within $250k to $325K cash and stock upside (lots of variability within cash comp). one challenge is unlikely to get higher in most corp dev / finance role as heads of corp dev and FP&A are usually young and unlikely to go anywhere so job hopping is required to get more (or wait for an IPO where your stock can start vesting)
Hope is helpful.