I’m sure all, or many of us, analysts believe we’ll be making over a million one day if we chose to stay at a corporate role at one of the larger funds. For the older folks, how possible is this? How many of your peers are averaging this ? I’m not talking about a one off year, talking more consistently.
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If you are assuming just a cash comp I’d say fewer than you think but if you are assuming total comp over a 5 or 10 year average probably more than you think.
In brokerage I feel like it's not uncommon, I mean $7-8M gross fee income that nets to $4-5M for one team led by 1-2 producers? Feels like a 7 figure pull
Agree on cash comp probably less than you think. Probably only MD level at the top/mega REPE shops or some of the best family offices. In my experience, most people on these tracks end up leaving before they get there to either (1) start their own platform / do their own deals or (2) move to head a more entrepreneurial shop where they get a large promote % but probably make $500k a year in cash comp (these shops likely don't have the type of fees to even pay them $1M if they wanted to). I've found that many get burnt out of working for the shops that can pay $1M a year before they get to that level. A mix of work/life balance but also just feeling like a cog in a wheel and dealing with that type of culture. If they're super type-A, they go start their own, and others typically take the trade off of cutting their cash comp in half but having a chance at a big promote check one day while also enjoying their lives/work more to go work for a smaller place.
In cash comp, way less than you think. It is most likely only MDs/Partners that are making that.
In total comp including carry averaged over 3 - 5 years, more than you think.
The reason carry/promote is so valued at higher levels is because that is where you make real money.
Think about it like this: many fortune 500 CEOs only take a 1-2mm cash salary and the rest in deferred comp/stock options/carry. And what a CEOs base pay is pretty much the cap for everyone else's base pay.
Jamie Dimon has a base salary of 1.5mm, but made 30mm+ in bonus, stock options, and deferred comp. Nobody's base salary at JP Morgan is going to be higher than that. You could make more than 1.5mm total comp, but the cash option is capped.
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