So just saw a posting for a senior director equity capital markets, and base pay is $186k in NYC, and then Sr Associate PM 145k, and associate in equity alternatives $110k.
These all seem really low to me. What is going on. I know the bonus for the associate position was 40% so bring you to $150k, which isn’t bad for 2-4 years exp, but the sr director role then would be less than 300k, and yes I am assuming the same percent bonus.
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Still seems low, but I'd guess the % bonus should go up to 50%-100% for a senior director putting them at ~$300-$400k.
They pay below market and haven’t adjusted for inflation
This is how life companies generally pay. They generally all comp to each other as well. I worked at a Life Co as this seems in line with what pay was when I was there.
Analyst: $90-$120K all in.
Associate/Senior Associate: $120-$165K all in.
Director/VP: $200-$300K all in.
senior director/MD: 400-550k all in.
While people are 100% going to argue with the above because they will believe it’s not true -life companies do not pay well in cash comp. Working at a life company means amazing healthcare among other benefits and a good lifestyle working 40-50 hours per week. The pay is great relative to the rest of the country / world. However, relative to “private equity” it is not as good.
This is accurate. I worked at a lifeco and people were not paid that well, although the hours were more than 40-50 per week which was extremely frustrating. I ultimately left and make 50% more and work less. The funny part is, we had calls with the head of the real estate group and he genuinely thought that compensation was not the most important thing to employees 😂
To some people, compensation isn’t the most important thing. I know plenty of people who will gladly take a job with less hours and stress and therefore less pay. The people who are at a life co as an MD may make $500K and say - I could make more in a PE firm. Let’s say they can make $700K instead. But is the uptick in hours and stress worth it? To them, it’s not. Because they value their lifestyle. The person you are mentioning isn’t wrong - it just wasn’t the correct thing for you.
for me, personally, I value pay. But I only value it to the point where I can live my life comfortable. Don’t get me wrong, I want to make gobs of money (to me). But I don’t want to work in a place where I can make an extra $100-200k for an extra 20-30 hours per week. I love the place I currently work because my hours are reasonable and my pay allows me to live a lifestyle I want. Could I make more elsewhere - probably. But I’m happy with my life and see no need to move. At a certain point, maximizing compensation isn’t always the goal.
This is 100% accurate. I work at a LifeCo.
You work a LifeCo for either great experience at a younger age and then move on to a better paying shop or you’re happy with the work/life balance and climb the ladder. There’s typically a lot of turnover at LifeCos more so at the below Director level as people end up getting fed up with the low pay and move on.
Overall, though, working at a top LifeCo is great experience, amazing benefits, and typically (depending on role) decent hours. If I want to leave at 430/5 no one cares. I don’t work weekends unless I run behind in a week for my own fault.
Also-working at a Life Company has higher turnover for younger people (1) because younger people generally move jobs more often. It’s harder to get new jobs as you move as up there are just fewer VP jobs than analyst, etc., and (2) because directors/VPs and MDs rarely leave life companies, partly for the reason noted above and partly because they are there for the lifestyle (this is assumed, there are a myriad of other reasons you stay or go). But junior people can’t move up if an MD/VP etc doesn’t either leave, move up creating space for someone new, or the company expands and needs another position of that level. So junior people leave in order to move up.
In my stint at a Life Co., only one person was able to go from analyst to VP and this had to wait “their turn” for the business to expand. They were told the VP role was going to them, but they needed to sit around and wait…it took ten years…and they waited because they liked the firm and were doing well, were happy with their life and comp.
Believe bonuses for directors are more like 75%-125%. I know several directors there making 300k-350k all in before benefits. Add in juicy retirement benefits, good WLB and a shitload of vacation and it isn’t a bad gig. Might not be where you want to be at 35 with 2 kids living in Manhattan, but in Charlotte or DC or Dallas, not too shabby.
Agree with Life Co and the SE and cheaper states. My life co paid NY salary and bonus to everyone. So those working in the SE were making tons of money comparatively. $400K in the SE goes a lot farther than in Manhattan.
Both of the ones I worked at did the same. The guys in the SE/MCOL states were living pretty large.
What do the retirement benefits look like?
-
One had a defined contribution of 5%-13% (depending on age) + a 5% match to the 401k.
I know one that just gives you 10% with no match.
One that matches + gives you a defined contribution which totals around 10-11%
And one that is 5% up to the SS limit, 10% to the max income + a 5% match on the 401k. So basically if you were making 275k, you could rack up an extra 37k in retirement contributions above what you put in.
yes, there are a bunch of vesting on these (usually 3-5 years), but that is what life companies really want anyways - long term employees.
Great place to learn and then leave if you’re after money. Which most of us are who are competitive and live in NYC. As another poster noted, hours weren’t that great at my specific lifeco. People would routinely be online and sending emails past 10pm.
To your latter point about sending emails and online past 10, I guess it depends on the nature and specifics of that. I work at a LifeCo and I answer/check emails up until I go to bed (11pm). That’s just my own nature and I’m not forced. There’s rarely a fire drill or a stressed environment that forces me to work that late. That’s the difference IMO with a LifeCo and say a smaller REPE shop.
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