Blackrock Back Office IT vs. Microsoft Software Dev Engineer

I have two job offers and I'm having trouble deciding between them:

  • BlackRock is offering 70K base, 10k sign-on bonus and no stock options for their back office IT role. Unfortunately this offer is non-negotiable. As is typical of finance firms, year-end bonuses are highly variable (does anyone have an idea what an average Analyst earns?)

  • Microsoft is offering 90K base, 10K sign-on and 1500 restricted stock units vesting over 4 years.

I have a B.S. in Computer Science and a Master's degree in Financial Mathematics.

I am more or less indifferent between the two jobs (both will involve coding), and both offices are located in the San Francisco Bay Area (one in downtown S.F. and the other in Mountain View, Calif.)

Here are my primary considerations:

  • I would like to maximise my earnings potential over the long term.

  • I do have a strong personal interest in Finance (hence my graduate degree), and I can't expand my skill set in this area if I were to become a Microsoft developer. I am interested in a front office role as an eventual goal, and it would be easier to transition into it within the same firm than after working X years as a software dev in the high-tech industry.

  • Software engineers at top tech firms tend to receive lucrative salaries right out of school; however, the amount of salary increase with accumulated years of experience isn't particularly high. For example, Microsoft's SDE 2 position, typically attained after 5+ years of relevant work experience, averages 97K/year according to Glassdoor.

If you were in my situation, which offer would you accept? Any help/advice would be greatly appreciated. Thanks!

 

Personally I'd take Blackrock. Just make sure to try to get involved in the RIGHT projects and you will be golden in a few years. All the trading is becoming automated anyway with much more demand for programming skills, and these hedge funds will pay you quadruple what tech companies will offer.

Born in hell, forged from suffering, hardened by pain.
 

I would take MS for the simple fact that 70k in the bay area is barely a livable wage. After CA taxes and housing you won't be left with as much as you think. MS is a good opportunity and 90k will give you more options.

 

you serious? I thought this was a joke post at first. MSFT by a long shot. Long-term potential upside is substantially greater than IT at BLK. Add in the extra 20k and it's a no-brainer.

I didn't say it was your fault, I said I was blaming you.
 

^ That was assuming you're equally interested in both positions as far as the work you'll be doing. If you have a passion for IT and hate software, then obviously take BLK

I didn't say it was your fault, I said I was blaming you.
 
Best Response

Just make sure to try to get involved in the RIGHT projects and you will be golden in a few years.

Can you please elaborate more on this? Which are "the RIGHT projects"; how do you identify them ahead of time; and how do you earn the privilege to work on them?

I would take MS for the simple fact that 70k in the bay area is barely a livable wage. After CA taxes and housing you won't be left with as much as you think. MS is a good opportunity and 90k will give you more options.

I agree with this, but there's also the potential year-end bonus from black rock. If the average bonus for an analyst is $20-30K as WSO's comp database and Glassdoor's database suggest, the total compensation could end up being comparable to or even greater than Microsoft's.

If you truly love coding, go for MS. But if you are into Finance, go for BlackROck.

How difficult would it be to transition into Finance later on? I am interested in Finance but I got hired into IT. I guess I would have to work a few years and then apply to a Finance opening as an internal candidate later on. Which may or may not be easy.

you serious? I thought this was a joke post at first. MSFT by a long shot. Long-term potential upside is substantially greater than IT at BLK.

How long-term are you thinking? Here's Microsoft's pay scale from 2006, which hasn't changed significantly. Levels 59-60 is entry level; 61-62 are 2nd level (SDE II as I mentioned in the first post); and 63-64 are senior level positions. 65+ are for management.

http://blog.seattlepi.com/microsoft/files/library/MSCompGu.jpg

 
RachelTran:
I would take MS for the simple fact that 70k in the bay area is barely a livable wage. After CA taxes and housing you won't be left with as much as you think. MS is a good opportunity and 90k will give you more options.

I agree with this, but there's also the potential year-end bonus from black rock. If the average bonus for an analyst is $20-30K as WSO's comp database and Glassdoor's database suggest, the total compensation could end up being comparable to or even greater than Microsoft's.

I don't know enough yet about finance to be 100% certain but it sounds highly speculative for you to equate a BO IT bonus to a FO analyst. In some cases it will be much harder to quantify your work (as is in most IT work) and justify the same bonus or even something close. I would base my analysis on a much more modest bonus and then decide.

 

Look it's simple, what do you want to be going in 3-5 years? Maybe you already said but I honestly don't want to read any of that.

Under my tutelage, you will grow from boys to men. From men into gladiators. And from gladiators into SWANSONS.
 

"Look it's simple, what do you want to be going in 3-5 years? Maybe you already said but I honestly don't want to read any of that."

I apologize for the wall of text but I did address that in my posts.

 
RachelTran:
"Look it's simple, what do you want to be going in 3-5 years? Maybe you already said but I honestly don't want to read any of that."

I apologize for the wall of text but I did address that in my posts.

"Finance"?

Under my tutelage, you will grow from boys to men. From men into gladiators. And from gladiators into SWANSONS.
 

I wouldn't count on getting 20-30k in bonus for your first year. Not even close.

Under my tutelage, you will grow from boys to men. From men into gladiators. And from gladiators into SWANSONS.
 

"there is no FO or BO for MSFT. FO and BO only applies to Investment banks."

Of course. Microsoft is a software company. If I work there I'll be on a software development career track unless I do a mid-life career change down the road.

"I wouldn't count on getting 20-30k in bonus for your first year. Not even close."

Understood.

Anyway, it looks like there is a pretty clear consensus. I think I will go with the software engineer offer. Thanks everyone!

 

Most of the success stories I read about on this website usually take the path of going through the back office and after a couple of years they moved their way into the FO. I think BlackRock would be the better choice, just make sure to befriend a lot of management there

 
lime1945:
Most of the success stories I read about on this website usually take the path of going through the back office and after a couple of years they moved their way into the FO. I think BlackRock would be the better choice, just make sure to befriend a lot of management there
This might be the biggest misconception that prospective financiers have: that it’s “easy” to transition from back office to front office.

In practice, it’s very difficult and I’ve rarely, if ever, seen it done. In cases where it does happen, usually it’s moving from “middle office” areas such as risk management rather than jumping from IT to M&A.

Often, engineers who want to move into finance are “sold the dream” on joining IT at a large bank, thinking that they’ll be able to break in at some point in the future.

 

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