Analyst/Associate Comp Question
Looking for some quick feedback from you all. Likely going to be hiring two acquisition analysts/associates in DC and one in Dallas in the next few months, and I'm trying to make sure I'm fighting for a comp package for this person that is attractive to the right quality of candidate. I always felt like I was underpaid when I first started out so trying to figure out what a good comp package would look like for someone with 2-3 years of institutional investment sales experience. Firm has $4B+ in AUM and has a couple of different fund mandates, but we run pretty lean so we haven't hired for these levels in a few years.
I've been told that $65k + 20% bonus for DC and $55k+ 20% bonus for Dallas seem reasonable, acknowledging that this will increase quickly as the person gets ramped up over 2-3 years. Would appreciate any thoughts (ideally by market).
I can’t speak to Dallas, but $65k+20% in DC seems very low, unless there’s some other comp that you’re not listing...
For DC, I’d target closer to $85k+20% at the Sr Analyst/Associate level.
You get what you pay for, ultimately.
I don't disagree. I'm posting because the suggestions I've heard elsewhere seemed low, and I want someone competent. Thanks for the feedback.
Why not get market intel from recruiters? That should give you the best picture of what’s truly market.
Are those comp packages for direct from UG no FT experience? If anything else, I'd say low for sure. You will find shops paying more, but there will be happy takers at those prices, still, bumping a little won't hurt you (especially that DC number).
I'd like someone with 2-3 years of strong investment sales experience.
These are low dude. If these analysts and the teams they come from are worth their weight in salt, they should be taking home close to double what your all-in rate would be. I’m sure people will take your numbers if offered in this market, but what this tells me is if you want to make $$$, brokerage is the way.
The bases could turn some otherwise strong prospects away. In DC, $75K plus or even $85K for base is more market for the person I think you want. Dallas I'm less sure on, but the $55k just seems low. I mean strong UG intern experience only candidates can probably land $55k base in Dallas (they can in Miami, and I think salaries would be similar).
How much are they paying you as a VP?
I think you can find someone at those numbers, but as others have said - you get what you pay for. I think with multifamily, you don’t need a rockstar analyst so you will be ok at those numbers. But it’s also my opinion that low pay leads to turnover. Hiring is tough
Those are first year analyst out of UG comp packages for a middle market team at CBRE. Hell I bet you there’s analysts at Marcus & Milichap making more than that.
I’d start by adding another $15-20k to base, respectively, and be fully prepared to add another $5-$10k on top of that for someone you really like. Bonus range seems to be market.
Too low for either city based on the prior experience you're looking for. I'm an analyst on the West Coast, and I came to my firm (also a lean team) with prior experience in Big 4 Audit and corporate finance. My last pre-REPE job paid me $85k + 10%, and my current firm offered offered $65k + 10%. I asked for and got $75k + 10% as my starting comp.
Granted, my prior experience wasn't in investment sales or direct RE investments, but I had years of work experience that was still within CRE.
Associate Dallas: $$90-$110 + 50% Associate DC: $100-$125 + 50%
Senior analyst Dallas: $80-90 + 35% Senior analyst DC: $85-100 + 35%
These would seem reasonable to me
This feels right to me. Currently in DC in this range with applicable years of experience desired from OP when I entered into my current role.
Market in DC is around $70-$80K base for first-year analysts, 20% bonus if acquisitions, maybe lower if portfolio or asset management. Paying $65K for a fund of your size aint the way
OP, I think you're getting the picture that it's too low. I agree - those are kind of laughable, non-starter salaries for someone with 2-3 years of experience, especially from IS. At 2-3 years, they've prob cut their teeth and have churned through the days of making peanuts (yes, can always have a bad year on commission). Or, at 3 years, they might be on the cusp of a promotion or a larger vig.
I'd ask yourself to be honest and think about what this hire's impact to the firm will be. Do you want to have to coach them? Do you want them to hit the ground running day 1 with no hand holding? Are they just going to be putting together some Excel reports or are they driving the bus on underwriting? You gotta pay for the relevant talent you want. Go in with a range you'd be willing to pay (for example $70-85K base in DC with 20-30% bonus for someone with 0-3 years of experience). In your interviews, you should be able to weed out who you would pay more for pretty quickly or the type of talent responding to the post.
Thanks for the feedback gang, you all said what I was thinking but I appreciate you validating it. Tough dealing with execs who still think $100k is a lot of money for a quality analyst, since it was all the money in the world to them 20 years ago when they were in those chairs. I've got some work to do internally on this front.
One more thing, if you pay at your lower range you should accept you will have some medium to heavy training. If you don't have the time to train then you will need the higher comp. IS, unless you are doing equity recaps, is not super math focused. You want the debt and equity guys, who have experience with structure, covenants, and of course PSAs as they do acquisition financing. They get more reps. I come from this background and run circles around ex-IS guys. But maybe the truly good ones are at Apollo.
No doubt, and I get all of that. There is my opinion which aligns with the comments in this thread, and then there are the opinions of senior management which I have to manage and navigate on my end. We like the IS analysts who can just rip through models and understand real estate/how to frame an opportunity. Lump in less training needed and that's what we're after. I'm just getting a sense of the market so I can position management appropriately and have the authorization to pay a "market" salary.
Would you be willing to hiring someone with less experience for these rolls?
PM me. IB guy looking to get into RE and would love to chat.
I made $62.5k+$10k in Dallas as a first year analyst for a small mezz fund with no other experience. With 2-3 years of experience I wouldn't get out of bed for less than $100k all-in as an analyst, probably take that up to $140k or so as an associate. Increase the numbers for larger fund size and equity vs debt shop
You get what you pay for. I'm seeing funds hire Analysts with less than 1 year of full-time experience and their all in comp is ~$100k, give or take depending on bonus. They're in a mid-tier cost of living city, so adjust accordingly. If you want a quality Associate candidate in Dallas, you'll have to be in the $110k-$140k range.
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