How much of a pay cut would you be willing to take?
Hi all -
Currently a second-year PE associate but am interviewing for a Corp. Dev. / Strategy role at a PE-backed company in an industry I'm far more interested in, which is very niche (think media / sports / tech), than my current specialist UMM fund (don't want to be too specific).
I don't hate my job (but certainly don't love it) and am certainly going to leave after my second year regardless (either try PE somewhere else with a better culture / WLB and less pay or leave the industry) as I've realized while I may be a good BB analyst / PE associate, I'm not super passionate about finance.
Long winded way of saying, how much of a pay cut would you be willing to take for a role that likely has better WLB in an industry you've always wanted to work in? It's hard to stomach a 50% paycut, but for roles looking for 3-4 YoE it's looking like that's market. I know career longevity is more important than current earnings, but worried about giving up optionality that my current track allows for this potential job. With that said, this is a pretty great fit considering my current skillset in an industry I'd love to work in.
OP here commenting to try to bump this. No responses yet but I'm looking at a comp drop off from $300k to $150k, though this would enable better WLB and working in an industry that is hard to break into.
I know no once can answer this for me, just want to avoid making a huge career mistake as I would be cashing in the 'optionality' I get from my current career path.
This entirely depends on your own needs and expectations. Is the better WLB worth the pay cut? Is 150k starting enough?
There is no end to the game of “more”. $300k might seem a lot to you, but will be small for the person making $500k. The person making $1mm would be despondent if their comp dropped to $500k. The guy making $10mil a year wishes he could be worth $100mm. And the $100mm guy wants to be in 3 common club. Those single digit Billionaires are salty they don’t have the pull of a Bezos or a Musk.
long way of saying - there’s never an end to “more”. Rather you just need to figure out what’s enough for you. Is $150k enough?
Thanks for the helpful response -- I know there is no one 'right' answer which makes this a bit more challenging. I think I'm a bit *less* driven by all-in comp than my co-workers and haven't had a *ton* of lifestyle creep, so I think I'm more worried about getting off this career path without the ability to go back more so than my overall comp, if that makes any sense.
Appreciate though thought exercise though, that's certainly a helpful framework.
All depends on your living costs. Is the job in NYC? You may feel a little tight if you're used to and plan to maintain a certain lifestyle. Are you going to be in Cleveland? You may be able to maintain your quality of life if not improve it and still have more air to breathe than you might with $300k in your current market.
throwawaybadabing also hits it on the head with the pursuit of "more" and how silly it can become.
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