$100K total comp. for 1st year PWM Financial Analyst?

I have heard a few people at my bank say they will be making $100K in total compensation ($60K salary + $40K bonus) as first year Financial Analysts in Private Wealth Management. This goes for both NYC and regional offices for a Top BB (MS, GS, JPM etc.).

Can anyone confirm these numbers? They seem a little high as I know base at my bank for PWM is set at $60K but bonus I thought ranges from $15K in a bad year up to only $25-30K in a good year.

 

A lot of people on this board think of Private Wealth Management and Private Banking as the same thing. I know a few analysts at Private Banks who probably cleared close to 100K as analysts back in 05/06. Private Banking is usually reserved for the high net worth clients and is a much more typical analyst experience (well, as compared to the PWM experience, I should say.)

 
Best Response
giocatoredoro:
There is no way. I have two friends at JPM Private BANK not PWM that earn 55 base plus a bonus that is generally half of IB bonuses (think 20-40k)

Okay well let's take the high end of your scenario: 55 base + 40K (think: 95K). Is that really NO WAY material?

My friends were also at JPMorgan's Private Bank. As nebanker said, half of last year's bonuses puts the bonus numbers closer to 40-45K for top bucket. Also, their salaries were 60K (and if second / third year analysts, higher). That clears 100K. Either way, it's a pissing contest (think: not worth arguing over) and a scenario that's far from INCREDIBLE.

Even if banks don't seperate their PWM and Private Banks, there's still a big difference b/w the analysts working on high net worth clients and those helping financial advisors to mom and pops. And I guarantee the banks have a separate groups w/in PWM exclusively for the upper echelon of clients (so you're argument of PWM same as PB is pointless).

Thanks for playing.

 

I always wondered about the Private bank and PWM distinction. Thanks for clearing it Nystateofmind. When I went for an interview with a BB in NY, I asked the HR person what people did after their two year analyst stint and she told me some people went into PE/HF and industry while the others went to the Private banking division. I was actually a bit surprised when she told me that as I thought that was a step down.

 

i see people throwing all of these numbers up there but is it just me or is there very little difference (relatively speaking) between 60k + 40k and 55k + 40k????????????

im not trying to call people out but when you put NO WAY and then given an example where someone could make 5k less a year then what was posted just sort of undermines the NO WAY, lol.

"The trouble with our liberal friends is not that they're ignorant, it's just that they know so much that isn't so." - Ronald Reagan
 

I am surprised also by the higher bonuses. I guess I really made a great decision after all. I was second-guessing myself about whether I should go into proprietary equity trading. Fortunately, now that I look at it, I will earn more money than I expected (our group deals with the real exclusive clients) and will get to be doing something which I feel I will be much better at and will have some exit opportunities to boot.

 

hmmmm.. i always tot private banking was the term used for commerical banks and PWM for IBanks, but i guess im wrong..

so basically, Private Banking>private wealth management?

 

Some investment banks, such as JPMorgan, have separate Private Banks and Private Wealth Management divisions. Other investment banks, such as Goldman Sachs, only have a Private Wealth Management Division which has a Private Bank area within it.

The Private Bank generally deals with higher net-worth clients while Private Wealth Management can be just your local financial advisor offering services to the local mom and pops.

 

PWM internships at BB's are extremely easy to obtain if you are in NYC (I know a couple of kids at extreme non targets who got PWM internships at bb's) The lack of selectivity for the internships in itself, should give you an indicator that a PWM FT starting salary can in no way possibly compare to IBD.

My best guess would be anywhere from 60-70k all in package as someone previously mentioned on this thread. Depending on firms/location/etc etc

And btw PWM is Private Wealth Management....which falls under the broader umbrella of Asset Management. There's more info on this in the Vault Guide to Investment Management. You should post this thread in the Asset Management forum...I think more people will know what they're talking about over there.

 
mack387:
PWM internships at BB's are extremely easy to obtain if you are in NYC (I know a couple of kids at extreme non targets who got PWM internships at bb's) The lack of selectivity for the internships in itself, should give you an indicator that a PWM FT starting salary can in no way possibly compare to IBD.

My best guess would be anywhere from 60-70k all in package as someone previously mentioned on this thread. Depending on firms/location/etc etc

And btw PWM is Private Wealth Management....which falls under the broader umbrella of Asset Management. There's more info on this in the Vault Guide to Investment Management. You should post this thread in the Asset Management forum...I think more people will know what they're talking about over there.

I don't know what you guys aren't reading. There's a difference b/w the banks' PWM bullshit basic financial advisors, and the banks' private bank (whether it's a more exclusive part of the banks' PWM group or separated out as their Private Bank). There's a huge difference b/w the analyst programs at one vs. the other. Please stop lumping them together.

Nobody cares what your "best guess" is because it's just that, a fucking guess.

 

Agreeing with NYSOM:

PWM can be a confusing term, much like "Asset Management". Different banks use it in different ways. Can they clear 100k first year? Absolutely (as I know several people in my bank's PB). It isn't a huge amount though: $60k salary (re: the guy at the top, I don't think any BB pays $55k for ANY FO job), $10k sign-on, and about $15-35k EOY bonus. That puts the range at about $85k-$105k. Lower PWM jobs (like those that do WM for FT in PWM groups at GS or UBS, where lots of kids do their sophomore internships, probably don't pay too much (I'm not in the PWM industry, so I have no idea), but that doesn't mean you can write off the entire industry. Especially when the OP may be coming here for legitimate career input. Why would you regurgitate something you don't even know?

In addition, everyone loves to make oversimplified generalizations. "Asset management", "investment management", "wealth management" all mean different things for various banks. Some banks use IM as the umbrella, while some use it solely for the institutional business (ie. hedge funds, PE, RE, etc). The vault guide for IM is not as useful as it is for IB, as it is a completely different and diverse industry and should be prepared for contingent on who you're interviewing with.

Sorry for being rude -- just get extremely annoyed when people write threads on topics they are clueless about.

Cheers.

 

I've had multiple interviews and offers in wealth management at BB's, so I have a pretty good idea of the distinction. Let's take Merrill Lynch, for example. They have a Global Wealth Management Group and a specialized team within that group called Private Banking. The regular Global Wealth Management financial advisors (FA's) deal with people with $1-10 million. The Private Banking FA's deal with people with $10+ million. The reason they do this is because there is a difference in perspectives between high net worth individuals ($1-10 million) and ultra high worth individuals ($10+). High net worth individuals care more about protecting and growing their money. Ultra high net worth individuals care more about their legacy (i.e. what impact they make on society), so Private Banking FA's will not only help their clients protect their money, they will advise them on issues such as which charities to donate their wealth to.

It's basically the same situation at the other firms. Morgan Stanley has a Global Wealth Management division and a specialized group within it called Private Wealth Management. Basically at the BB's, anytime there is the word "private" in the name of the division, it's the elite group that deals with people with at least $10 million. Regular FA's only deal with $1-10 million clients. Thus, it's actually a misnomer when people say PWM because most people in wealth management do not actually work in PWM. Only the best of the best are selected to join that elite group. The PWM divisions at each firm will recruit the top producers not only at their own firm, but other firms as well.

 

Interesting topic. Does anyone know what the comp progression looks like for these "private bankers"? What kind of work/analysis will the first and second years be doing?

 

Comp progression goes something like this,

You are an analyst for a couple of years, your manager comes up to you and says we like the work you have been doing we'd like to promote you to an associate (or a production role). We will pay you a base salary, call it 80-100K and your full time job will be to bring us business, analyst will be doing the pitchbooks and portfolio monitoring. If you don't bring in at least 40 MM dollars in 2 years, you are fired... thats how it works at the top Private Banks (those catering to 10 MM and above clients.

Those of you who are comparing Investment Banking Analyst to Investment Management, its not even close. In I-banking you make pitch books, review grammar and do the occasional modeling till the wee hours of the morning, you don't have to be intelligent at all to do that job, in fact they specifically hire a particular type "the hard working retard who won't question orders" then, after 2 years, unless you are good, you are fired.

Investment Management jobs are a lot more secure since the flow of fees is steady, usually charging about an average of 1% of total assets under management. Investment Banks over-hire in good times, and over-fire in bad times, so its a totally volatile field. Also the bonuses from 2006 are gone, so if you are going to work for 80 hrs a week and get paid 65K starting plus a 40K bonus, that's really not all that impressive given the fact that the bonus is taxed 50% you retards. Plus enough with this exit opportunities bullshit, you think every analyst goes to work for a private equity firm or a hedge fund, you guys must be joking...keep drinking that cool aid.

In investment management you are encouraged to eventually create your own clientele, and live off your assets under management, the analyst position effectively teaches you the intricacies of the business, the reporting, the client schmoozing and most of all sales. Even in investment banking, doesnt matter if you are the retard they stick in the back doing models till 4 am everyday, you will not get to V.P unless you have selling ability.

 
SoccerDude3498:
Comp progression goes something like this,

You are an analyst for a couple of years, your manager comes up to you and says we like the work you have been doing we'd like to promote you to an associate (or a production role). We will pay you a base salary, call it 80-100K and your full time job will be to bring us business, analyst will be doing the pitchbooks and portfolio monitoring. If you don't bring in at least 40 MM dollars in 2 years, you are fired... thats how it works at the top Private Banks (those catering to 10 MM and above clients.

Those of you who are comparing Investment Banking Analyst to Investment Management, its not even close. In I-banking you make pitch books, review grammar and do the occasional modeling till the wee hours of the morning, you don't have to be intelligent at all to do that job, in fact they specifically hire a particular type "the hard working retard who won't question orders" then, after 2 years, unless you are good, you are fired.

Investment Management jobs are a lot more secure since the flow of fees is steady, usually charging about an average of 1% of total assets under management. Investment Banks over-hire in good times, and over-fire in bad times, so its a totally volatile field. Also the bonuses from 2006 are gone, so if you are going to work for 80 hrs a week and get paid 65K starting plus a 40K bonus, that's really not all that impressive given the fact that the bonus is taxed 50% you retards. Plus enough with this exit opportunities bullshit, you think every analyst goes to work for a private equity firm or a hedge fund, you guys must be joking...keep drinking that cool aid.

In investment management you are encouraged to eventually create your own clientele, and live off your assets under management, the analyst position effectively teaches you the intricacies of the business, the reporting, the client schmoozing and most of all sales. Even in investment banking, doesnt matter if you are the retard they stick in the back doing models till 4 am everyday, you will not get to V.P unless you have selling ability.

I am sorry that you got stuck in your shitty little pwm summer gig and are now trying to make yourself feel better about it.

If your idea of a life is living off a 1% management fee that is a sad life of a looter indeed.

FWIW PWM is lucrative if you own a swiss private bank. Unfortanetly those have been founded a long time ago. Same with investment banks tough.

 

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-- "Those who say don't know, and those who know don't say."
 

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