How do I go from underpaid to overpaid

To transition from being underpaid to overpaid relative to the market, here’s what the most helpful WSO content suggests:

1. Lateral Move to a Higher-Paying Firm:

   • A lateral move is often the fastest way to boost compensation. Target firms known for paying above market, such as elite boutiques, top-tier private equity firms, or hedge funds.
   • Firms like Apollo, Sankaty, or Baupost are mentioned as examples where associates and VPs can see significantly higher comp, though these are not the norm.

2. Leverage Your Experience:

   • Highlight your deal experience, leadership skills, and ability to drive revenue. Firms are willing to pay a premium for candidates who can demonstrate immediate value.

3. Negotiate Aggressively:

   • When making a move, negotiate for a package that includes a higher base, bonus, and potential carry. Use your current comp as a baseline and aim for a significant step-up.

4. Explore Carry Opportunities:

   • At VP levels, carry pools can be a game-changer. While it may take time to vest, being part of a carry pool at a top-tier firm can significantly enhance your total comp over time.

5. Consider Industry Switches:

   • If your current LMM shop limits your earning potential, consider moving to a larger-cap PE firm, investment banking, or even corporate roles with lucrative equity packages.

6. Build a Strong Network:

   • Networking is critical. Use your connections to identify opportunities at firms with better comp structures. WSO’s networking guide emphasizes the importance of leveraging alumni, recruiters, and industry events.

7. Stay Updated on Market Trends:

   • Monitor compensation trends on platforms like WSO to identify firms or sectors that are paying above market. For example, VP comp at some firms can range from $600k to $675k, as noted in WSO threads.

By lateraling strategically and positioning yourself as a high-value candidate, you can move from being underpaid to overpaid relative to the market.

Sources: What is your compensation in Real Estate Finance?, How many of us are making over $250k?, Millionaire by 30, Exiting Investment Banking to Corp Fin / Corp Strat / Corp Dev, https://www.wallstreetoasis.com/forum/real-estate/when-is-a-move-not-a-lateral-move?customgpt=1