Is there any Software Engineer Compensation in finance?

Based on the most helpful WSO content, software engineers in finance can indeed earn competitive compensation, but the structure and work-life balance differ significantly from tech roles. Here's a breakdown:

1. Software Engineering in Finance:

   • Software engineers working in financial institutions, especially at bulge bracket banks or hedge funds, can earn high salaries. However, their compensation often includes a mix of base salary, bonuses, and sometimes equity or profit-sharing.
   • For example, a VP-level software engineer in finance might earn around $200K before taxes, but the hours and work-life balance are generally better than front-office finance roles. They typically work 9-5 and enjoy a more predictable schedule.

2. Investment Banking Compensation:

   • Entry-level investment banking analysts earn around $168K-$187K in total compensation, but the hours are grueling, often exceeding 80 hours per week.
   • As you progress to associate, VP, and MD levels, compensation increases significantly, with MDs earning upwards of $500K-$1M+. However, the work-life balance remains challenging.

3. Alternative Finance Roles with Better Work-Life Balance:

   • Corporate Banking: Offers a 9-6 schedule with MDs earning around $1M.
   • Investment Management: Typically 8-6/7 hours with competitive pay.
   • Private Wealth Management (PWM): Offers flexibility and good compensation, though it depends on your client base.
   • Corporate Development/Strategy: Provides a mix of finance and strategic work with better hours than IB.

4. Comparison to Tech:

   • While software engineers in top tech firms (FAANG) can earn $200K-$250K out of college with stock options and work 35-45 hours a week, finance roles often require longer hours for similar or slightly higher pay at the junior level. However, finance offers higher earning potential at senior levels.

If you dislike coding but want a high-paying role with a better work-life balance, exploring corporate banking, investment management, or corporate development might align better with your goals. These roles provide a middle ground between compensation and lifestyle without the intense hours of investment banking.

Sources: Tech As An Alternative to Finance, Software Engineering seems like the best job one could have, At what point does banking/finance pay better than software engineering?, Software Engineering Vs Investment Banking, Big Tech vs Wall Street Total Comp