senior level pay

Going through old posts, it's pretty evident what junior level pay is in research. What does it escalate to after 5 years? 10 years? Once you become a senior analyst/MD?

Don't confuse with with a corporate finance/s&t salary+bonus question. I know research is paid less, but I would like to know some numbers if anybody has got 'em.

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Comments (19)

May 29, 2007 - 11:53am

depends on market cap. A top pharma guy can make 7 figures, but it's hard to make that these days because of the rule changes. The best move is a move to the buy side as a fund manager where most analysts end up and then you can definitely make 7 figures.

It's hard to tell because of all the rule changes.

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Jun 23, 2007 - 1:26pm

Research at the BB is a commodity and pay is going down year to year. Entry analysts and associates are being outsourced to India. Failing business model with it no longer being linked to M&A. Not an area to enter. If you are already a Sr. Analyst you are fine, if you are not you can and will be outsourced.

Jun 23, 2007 - 1:55pm
thefork:
Research at the BB is a commodity and pay is going down year to year. Entry analysts and associates are being outsourced to India. Failing business model with it no longer being linked to M&A. Not an area to enter. If you are already a Sr. Analyst you are fine, if you are not you can and will be outsourced.

Yay for misinformation!
But hey, I'm sure you read somebody else post it on this forum, so if you say it...it must be true!

Jun 25, 2007 - 4:48am
thefork:
Research at the BB is a commodity and pay is going down year to year. Entry analysts and associates are being outsourced to India. Failing business model with it no longer being linked to M&A. Not an area to enter. If you are already a Sr. Analyst you are fine, if you are not you can and will be outsourced.

Gosh, do you make up things on a regular basis?

Jul 6, 2007 - 4:55am
thefork:
Multiple BB firms have outsourced 1st and 2nd year analyst positions to India. This is a FACT.

dude, they outsource pitch books and management consultancy to india now - the people that stay though do the fun work and make the same money.

But thanks for your infusion of 'facts' - if you capitalize it, it must be true.

Jul 10, 2007 - 6:59am
tronnity:
think some specialty shops will end up surviving - tech, healthcare, energy.
however, real independents will find it hard to sustain selling research w/o the brokerage biz.

Ah, but there are independent setting up with traders and salesman - Redburn Partners in London does that and Cazenove as well.

Jul 6, 2007 - 10:32pm

Think of research as the supply/demand curve. Right now the curve is moving towards more supply than demand, and the relative price of research is going down. My thoughts are that eventually it will reach a point where people realize that there is a lack of research in the states, and the curve will move back in the other direction.

Besides, the research function will never be entirely outsourced. Granted, teams are being run very lean and pay is probably no longer as high, but the essential functions research serves at every level can't be outsourced (i.e. corporate access, relationship management, etc)

Jul 12, 2007 - 2:24pm

Experience beyond 5-6 years is irrelevant - it then comes down to how good you are.

The 4 micro factors are;
1) How big is the sector you are looking at?
2) What is the market share of your house?
3) How close to the top of your team are you?
4) How efficient is your firm (what is the loss ratio? is trading subsidising prop losses? how many non-producing mouths are there to feed?)

The 2 macro factors are;
1) What is the market doing?
2) What are the pressures on commission rates?

Currently, a senior analyst goes for gbp200-700k depending on sector, ranking and house. A star analyst in a good house around gbp1-2m. Once you get to the upper ranges, a big chunk will be in stock so if it does well it could be more (or less).

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