I have heard from a MD at a top BB that the average annual compensation for a Private Wealth Advisor at this particular bank is $1.5 million.
Now correct me if I'm wrong, but isn't PWM supposed to be less selective and pay a lot less than IBD and S&T?
If Private Wealth Managers on average can get paid $1.5 million per year that means quite a few must be clearing the $3-4 million mark which is easily on par with senior BB MDs in IBD and S&T.
If you manage lets say $2 billion and charge high fees (basis points) is it likely that you can make in the $3-4MM range?
Senior Private Wealth Manager Salary
Private wealth managers can make very good money when they manage a large book. The job is prestigious but can be perceived as not as attractive as investment banking and sales and trading due to the fact that there are limited exit opportunities into completely different career paths. Also it can be perceived as less prestigious because PWMs often don't develop strong hard skills as their job revolves around cold calling and being a strong sales person. Our users discuss below.
I will be short but brutally honest here. I have worked at 2 different BB in pwm and one of my family's best friend is the top FA at a MM firm.
Its really MUCH more about relationships and being a people person than it is being a financial mind. Our family friend has around 600mm AUM and brings in around 3-4mm (retail so he charges much higher fees) , he doesn't know that much about the market and he admits it but he has a great personality and people give him their money to manage.
The top guy at my old probably made between $2-$4 million a year, maybe even more. He had about a billion under management, one junior broker, and two support staff. It took him 20 years to build his book, and he said starting out was very tough especially when he switched from salary to only commission.
I don't know if my office and BB is just really damn good at this Wealth Advising thing, but we had a team of two Wealth Advisors managing $1.7 billion. There was a separate team of three Wealth Advisors managing $4.5 billion. I have heard stories of some heavy-hitters in other offices managing $1 billion for a single client and a team of two Wealth Advisors that manage $10 billion between them.
I don't see how managing $2 billion in assets under management and making $3-4 million per year is a bad scenario. I understand the work in PWM is not nearly as quantitative as Trading or financial/accounting oriented as Ibanking, but the pay can be pretty good.
Everyone says these guys are older, but where I was some of these guys were late 30s and early to mid 40s. Now bankers can make those big bucks, but they reach MD level at around the same age so I don't see how bankers would make substantially more to the point where their lifestyle is any different.
User @Investor1 went on to share:
These top producers in Private Wealth Management don't have a very strong financial skillset. PWM is all about getting the prospect to trust you in managing his money. Obviously if your client's performance is -85% YTD, don't expect your charming personality to save your ass.
What is a Wealth Advisor?
A wealth advisor is a paid consultant that provides investment and financial advice.
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