Compensation: Corp Development roles Vs FP&A/Accounting roles
If my end goal is F500 Leadership Roles, looking purely from a compensation perspective, would FLDP (accounting) be better than the Corporate Development/IB route?
My reasons for FLDP being a better route (please correct me if I'm wrong): - The salary for corporate development is very similar to that for other corporate finance positions at every level; - The competition is less-intense. For Director/VP positions for CD, you're competing against ex-IB/MC employees. For Director/VP positions for other CF positions, you're competing against ex-FLDP/Big 4 employees. - There are more jobs around for CF positions. Thus, more opportunities for promotion within the company and to other companies.
From what I gather, the salary for CF (including CD) are as follows:
Position (Years to get promoted, assuming top-ranked) ---> Salary (Bonus)
FLDP (2yrs) --> $55K - $65K (15%)
FA (1-2yrs) --> $70K - $80K (15%)
SFA (3-4yrs) --> $75K - $110K (20%)
Mgr (4-5yrs) --> $100K - $135K (23%)
Director (5+) --> $140K - $250K (25% with equity)
VP (highly variable)-> $250K - $500k (highly variable)
CFO --> ?
Am I right with the above? Thanks!
Note: I'm only comparing purely on a compensation perspective.
It's hard to confirm your numbers because it depends highly on industry and region. A manufacturer in Indiana isn't going to pay as much as tech in SF.
I can confirm that equity comes into play much earlier at many companies.
I'd be interested in hearing what other corp dev/strategy salary ranges are. From the small sampling of ranges I've seen, they have been a bit lower than I expected (especially considering most of the time they target ex bankers and consultants). I think tech companies have the best compensation packages for corp dev. I'd be interested in hearing anyone else's thoughts
I currently work in corp strategy. When I was getting into the area after 2.5 years in IB, I was asking around and I found that my experience level would often qualify me for a Sr. Associate / Sr. Analyst-titled job. These would range from a salary for $80-$110 with a (target) bonus ranging from 5-15% (with report payout rates of between 3%-200%). There is a HUGE range of potential compensation points, even within the large F500 (or similarly visible) companies.
At the manager level (typically the next step from Sr. Associate / Sr. Analyst), base salaries range from $100-140 with similar target bonus ratio and payout rates. Don't know too much about Director-level comp, but I know some guys are pushing $200 all-in.
As for industry differences in compensation, I've found that strategy teams at big BBs and tech companies due get comped significantly better than other industries. Of course, company health and frugality also plays a factor.
Corp dev could be completely different than corp strat, but I doubt it. The little I've heard doesn't seem to support that.
Given how much less you work/travel than your previous IB/MBB job, it's not surprising these routes don't really hold a candle to the alternative of staying on your current path.
From my experience:
FLDP salary is generally in line, bonus was 10% target. FA salary is a higher range than what I have seen, and bonus is still 10%.. SFA @ 15% bonus. Manager @ 25% bonus Director @ 35% bonus and low end of the salary is very low from what I've seen. VP low end is more realistically 240k, SVP low end starts in 300s.
There's a lot wrong with this. First of all you can't just give an average salary for each level. There's different salaries in different industries/companies for different reasons. An FA in NYC or SF will make more than one in Bumblefuck, Ohio (cost of living). An FA in O&G will make more than one in consumer goods (O&G is cyclical - greater chance that you get laid off).
Most fldps are FAs, and they get paid roughly the same. Some fldps promote to SFA while still in the program, some promote after the program, and others don't promote for years. Here is something more realistic for, let's say the 25th-75th percentile of F100 companies:
FA (0-5 years, ~5-10% bonus): starting salary of 45k-55k. Some fldps give bigger raises than normal, but in general you'll be seeing 3-6% raises per year while an FA. SFA (2-15 years, ~5-10% bonus): starting salary of roughly 60k, may be higher other places (we're assuming no MBA here).
In general the pay in corpfin is lower than what you think it will be. If you're solely in it to make money, generally CorpDev pays substantially more (starting salary likely at or above $60k for a company that hires fresh undergrads with no experience).
Again, this is all highly variable depending on industry, company, and location. There are some benefits to doing CorpDev over CorpFin and vice versa - that's for a different post though.
Those #s you gave aren't at all realistic for F100.
What industry are you in?
I think D M 's numbers are actually realistic. Again, it depends on company and location. But for those of you gunning for corporate finance, don't be disappointed when you get a great company but they are offering a much lower salary than quoted above.
My numbers actually might be slightly low since I put F100 instead of F500. If it was F500 I'd stick to my guns, but for 100 you might see a $5k boost in the 25th-75th percentile.
I hate the salary discussion though - go for the industry that interests you.
Your comments about working in Accounting/FP&A versus corporate development are spot on, and these are the main reasons I chose to stay in that function. There are simply a larger number of opportunities in the Accounting/corporate finance track with less competition, the path to leadership positions is more defined, and the pay is the same as the pay in the corporate development function (i.e. a director makes director level pay whether you're a finance director or corporate development director).
We often hire these guys from top full time MBA programs into corporate development roles, and they are paid less than I am working in accounting with a part time MBA. All that said, you should still choose the work that you will enjoy doing on a day to day basis and focus less on the compensation. You can make good money in both fields.
Finance Accounting is clean path to C Suite for someone willing to put in the extra hours.
Any updated comp views for corp dev vs other corp finance/accounting roles? Is there usually a premium at equivalent levels for corp dev or would other corp roles provide similar comp trajectory if the goal is senior finance leadership positions.
This is stupid
just do IB
Please do IB. You won’t regret it. It’s a huge leg up. You have the rest of your life to find roles in corp dev. Start as IB… even mid market IB is far more valuable than an fldp
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