By now, most should have gotten their 2023 base + bonus numbers. Just want to start a fresh thread to specifically see what 2023 bases in the sector are looking like, considering the economic noise. Hopefully this can be informative to others as well. Keep it short and simple. I’ll start.
Market : SF/LA/NYC
YOE: 2
2023 Base: $125K
Role: Lending - 3rd Year Analyst
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$450 trillion million
Market :
YOE: 4
2023 Base: $155K
Role: Lending / Senior Associate
I am ecstatic and pumped honestly (know others might earn more but keep in mind a big part of why I am here is because I work 35-45 hours most weeks so I love my $/hr pay), I was anxious leading up to the annual review and bonus season as I wasn't sure I would crack the $150K base mark and get the senior associate title yet. A lot of credit to my manager for advocating for me as I could have easily been kept at the Associate level for another year or two with a base of $125-$135K which is honestly already at the top end in the space I am in as our competitors pay a base of $70-100K and of course might pay higher bonuses than us and try to get to the same total comp but honestly the outlook is not looking too good for the next year so who knows how bonuses will look, that is why I really wanted that higher base at all costs.
Without giving away too much info, I work for a smaller shop and haven't been paid well until this past year. I started as an analyst and worked my way into VP and eventually solidified a spot for myself as a VP, and had a good year proving out my ability to source/close a few deals before them giving me this pay. I'm also always plugged in, even on vacation and weekends, but I don't spend much time in the actual office so that's why I say the actual hours that I'm working are probably 30 - 50 per week, though I'm often answering emails or thinking through deals from 7 am til 10 pm. I work really well this way and it doesn't bother me to always be "on" because I also control large blocks of my time during the middle of the day (when calls/schedule allows, I basically have no one watching over me so long as deals are getting done so can often take breaks, run errands, go to the gym, etc), and while I've never lost a full vacation day due to having to plug in, I usually always spend 2-3 hours per day while on vacation working though this also has never bothered me and I actually prefer it as I feel better the rest of the day when I know I knocked a few things out in the morning.
My advice would be to find a smaller shop that has growth potential (with strong sources to capital - I wouldn't go run to join a multifamily syndicator that's slinging deals left and right with HNW money that could go under at any time) and work your ass off for a couple years to solidify yourself. If you're producing in a smaller shop, they'll usually never risk losing you over you wanting to take more control of your schedule so long as the deals are getting done. Also, a lot of these shops can be light on the pay at first (and understandably so, by nature of being smaller with the growth potential in front of them probably means they don't have the funds to be dishing out big salaries to new guys), but again if you prove yourself to be an asset that's producing for them, they usually end up finding the money to increase your comp to keep you but sometimes it takes a couple years of grinding it out for below market pay. Finally, these shops are never going to be the top paying. I know others my age that are already making $400k+ plus carry that has already started to pay out handsomely, but I also know that none of those shops are going to give me the freedom I'm looking for. I'd rather make less, have my freedom, and hopefully in 10-15 years the shop I'm at will have grown into one of those top paying players, except for now I'll be one of the executives calling my own moves instead of the new VP they're bringing on that's going to be working long hours in the office every day.
Before my recent pay raise, I was actually out interviewing for other positions, and I can tell you they're out there, especially in mid-size markets (Seattle, Denver, Austin, Nashville, etc.). I think the best thing to look for is founders that have background with some of the big institutional players that spun out to start their own shop and already have somewhat of a track record by themselves and are now in position to start growing the firm
Just to give a datapoint from a large Dev shop (at this firm but more junior).
2022 Cash comp for our new hires out of MBA (so Associate / senior associate level) was 150k base + 30% target bonus for 195k all-in not including signing. Profit sharing isn’t much first year, but likely tacks on another 15-20k depending on office / business unit.
2023 cash comp for at least one of these hires is now 156 + 35% I believe. So all-in comp for first full year looks something like 210k cash comp. In a good year profit share could add (alot) to that and know that it’s possible to clear 300k at that title in some years.