Equity analyst pay isn't all that bad
… But that depends where you work, of course.
Data from Octavius Finance, the headhunter, suggests that the pay for a “fundamental equity analyst” ranges between £68k ($85k) per year (as a junior at a hedge fund) to, potentially, £450k ($563k) per year (as an experienced analyst on the sell-side).
Crucially, Octavius Finance’s report only tracks up to nine years of seniority, leaving important questions unanswered about whether senior staff in banking would be better off going to the buy-side. Nonetheless, it seems pretty clear that, with at least five years of experience, it’s worth being on the sell-side.
Although there are some slight differences, pay between the sell-side and asset management / hedge funds is comparable at all levels. Those with 1-2 years of experience at an investment bank receive significantly lower bonuses compared to their peers at asset managers and hedge funds (30-60% of salary, compared to 40-100% and 50-110% respectively), but they benefit from a higher salary generally (£70-£80k, compared to £50-75k and £45-70k respectively).
The best news for equity analysts is that they aren’t that far off their colleagues in investment banking, surprisingly. Data from Pearse Partners last month suggested that the salary range for an investment banking VP in London was between £150k and £185k, depending on seniority. The equivalent range for a sell-side equity analyst is between £130k and £150k.
The sell-side pays higher salaries across all levels, in fact, which might not be the worst deal in the world right now, all things considered. Just see if you can jump ship when the industry begins to recover.
Have a confidential story, tip, or comment you’d like to share? Contact: Zeno.Toulon@efinancialcareers.com in the first instance.
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