quant salary negotiation?
I got an offer from a top tier prop trading firm.
My role is quant researcher and I have a PhD in math.
I am happy with the base salary, but they only give out bonus worth 10%-25% of the base.
What is the average of this industry now?
Should I ask for more before signing the contract?
Quant Salary and Bonus Negotiation
Varying levels of work experience makes the pay scales vary widely. But a 1st-year quant can pull 120 to 170 thousand plus a bonus. The size if the bonus can be as high as 75 to 100 percent of the base.
Another important factor to consider before signing your offer is reviewing the non compete clause. This clause can prevent you from working at another fund for a period of 12 to 24 months.
Bellow is a comment from the post
When I was negotiating, I couldn't in good faith ping pong offers back and forth in a bidding war too many times, especially for a company I was most likely not going to accept. So, I tried to limit as much as possible the number of times I negotiated with a company.
I first let the company show me their offer without them knowing the details of my other offers. Then, I showed my highest offer to every other company. Afterward, I took the highest from the updated offers back to the original highest offer to see if they could go any higher. If there is an update and the company you want most is not the highest offer, bring them the new highest offer to negotiate.
At this point, you've negotiated at most twice with any company which I believe is acceptable.
Lastly and optional, if you really feel like you can push it a bit, ask your top company if current + X would be possible and you would accept if they could do it. I have seen a few of my friends do that and be successful though I didn't do it personally.
Key Takeaways
- Show your highest offer to every company. Let them make a second offer. Take the second batch of highest offers and present them again.
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I know two quant researchers. One is at a stat arb HF and the other is at a prop shop. They both have low six figure (i.e. 125-150K) bases and have bonus targets around 100%. Based on these data points, your bonus guidance seems very low.
thanks for the info!
1.) Wilmott.com and Quantnet.com
2.) Different levels of experience pay differently. I would expect a freshly minted Math PhD to earn less than someone with experience.
3.) I believe a first year quant with a PhD or a few years of work experience at an NYC bank is typically going to earn something on the order of $120K-$170K. I'd adjust upward for a prop shop due to the higher beta and volatility, and I'd adjust downward for a lower cost of living than Manhattan.
4.) Is this something you really want to negotiate? Or would you rather just go out and get a better offer. Irony of ironies, the less prestigious shops who know how to find good people and want to hire good people often pay better. CC Goldman discount.
5.) Read the non-compete CAREFULLY.
thanks for the suggestions.
thanks for the info and suggestions, they are really helpful!
How big of a difference is there at your shop between quant researchers and algo/quant traders in terms of responsibility? Aren't they usually similar?
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