corporate $$ vs. sell side (less $$)

I've gotten my MBA(top 15) a couple years ago and wanted to get into buy-side, HF, etc... but without much of luck(financial meltdown, no prior finance experience). I now work for a F10 corporate with an easy life style and decent compensation (little over 100k). I recently came across this opportunity as a junior equity analyst at a boutique research firm in Ohio, but for me to work there, I'll have to take almost 30% pay cut. They say that's only base salary, with bonus, it should make up to what I'm making now. The firm does have some high caliber people working there, few HBS/Chicago, but most are from local colleges.

So several questions,

  1. Career wise, how easy it is to go from a boutique to BB or buy side and eventually end up in HF? On average how many years would it take? Do buy side or BB in general consider equity analyst from a boutique at a mid-western town?

  2. From the salary perspective, with bonuses, would it really make up to what I'm making now? Can someone who works at a boutique shine a light on this?

  3. Some people told me don't worry about the pay cut, because the potential of earning $300k in 10 years will be much larger than if I stayed in the corporate? How likely will I be making $300k, say in 10 years if I stayed in this industry, either sell or buy side?

I'm just torn between taking a huge pay cut now vs stay in the corporate, is this a risk worth taking?

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Comments (14)

Jul 22, 2011 - 5:43pm
HedgeTed:
Are you joking

Buy side or BB ? You have clearly no idea !

You never made an MBA, its obvious.

Do you know the terms "Flow Trading" or "Proprietary Trading"

OP said " from a boutique to BB or buy side " meaning he wants to go from this boutique equity research firm into a BB investment bank or Buyside research. sounds like a valid question to me.

Money Never Sleeps? More like Money Never SUCKS amirite?!?!?!?
  • 2
Jul 22, 2011 - 5:46pm
HedgeTed:
Are you joking

Buy side or BB ? You have clearly no idea !

You never made an MBA, its obvious.

Do you know the terms "Flow Trading" or "Proprietary Trading"

I admit I don't have as much of industry knowledge as many of the experts here, but I do know the basics and differences between "flow trading" and "prop trading". The whole point is for me to decide whether it's worth it to make the switch, and how likely is it to go to BB/buy-side, that I have no idea. Judging from your post, it seems it's close to impossible then...

Jul 22, 2011 - 5:50pm
aucsweep:
HedgeTed:
Are you joking

Buy side or BB ? You have clearly no idea !

You never made an MBA, its obvious.

Do you know the terms "Flow Trading" or "Proprietary Trading"

I admit I don't have as much of industry knowledge as many of the experts here, but I do know the basics and differences between "flow trading" and "prop trading". The whole point is for me to decide whether it's worth it to make the switch, and how likely is it to go to BB/buy-side, that I have no idea. Judging from your post, it seems it's close to impossible then...

honeslty dude, i would think Buyside is maybe a little out of the question now. but BB may still be possible... are you talking about BB asset management or investment banking?

Money Never Sleeps? More like Money Never SUCKS amirite?!?!?!?
  • 2
Jul 22, 2011 - 5:28pm

I think 300K in 10 years is a pretty modest goal that you can achieve staying where you are.

-MBP
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Jul 22, 2011 - 6:06pm
manbearpig:
I think 300K in 10 years is a pretty modest goal that you can achieve staying where you are.

MBP, you think 300K in total comp is a modest goal for a corporate role? are you talking about corporate development?

i work at a well-known F1000 software company that has a reputation for paying very well (we even made Fortune's "Top Paying Companies" list). i have access to a lot of salary data, and i can tell you that for a Corp Dev director-level position $300k all in is on the upper end of the spectrum, and Finance is substantially lower. director positions aren't easy to come by either.

to make that kind of money you'd have to be a VP or higher (a real VP, not the inflated investment banking VP).

Money Never Sleeps? More like Money Never SUCKS amirite?!?!?!?
  • 1
Best Response
Jul 22, 2011 - 9:46pm
sayandarula:
manbearpig:
I think 300K in 10 years is a pretty modest goal that you can achieve staying where you are.

MBP, you think 300K in total comp is a modest goal for a corporate role? are you talking about corporate development?

i work at a well-known F1000 software company that has a reputation for paying very well (we even made Fortune's "Top Paying Companies" list). i have access to a lot of salary data, and i can tell you that for a Corp Dev director-level position $300k all in is on the upper end of the spectrum, and Finance is substantially lower. director positions aren't easy to come by either.

to make that kind of money you'd have to be a VP or higher (a real VP, not the inflated investment banking VP).

I assumed corporate development. What makes you think otherwise?

Also the numbers you're implying sound pretty bleak. In you experience, what's the salary progression like?

-MBP
  • 3
Jul 22, 2011 - 5:55pm

If you have good industry knowledge from working at the F10 company, why don't you try applying and networking with BBs/MM banks/better boutiques directly? Industry knowledge, combined with your top 15 MBA should give you some chance at covering the sector you've familiarized yourself with over the years. After that you can try to switch to HF.

Under my tutelage, you will grow from boys to men. From men into gladiators. And from gladiators into SWANSONS.
  • 1
Jul 22, 2011 - 6:03pm
Flake:
If you have good industry knowledge from working at the F10 company, why don't you try applying and networking with BBs/MM banks/better boutiques directly? Industry knowledge, combined with your top 15 MBA should give you some chance at covering the sector you've familiarized yourself with over the years. After that you can try to switch to HF.

it's been difficult to get into BB/MM, I tried various networks haven't had any luck. The main problem is that I don't have any prior financial industry experience prior and after MBA, I was an engineer worked in the tech before biz school.

Jul 22, 2011 - 6:02pm

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