American investment services industry has developed rapidly in recent years. With the growing assets under management and trading volumes, salaries of investment professionals in the U.S. financial market have increased substantially. This article analyzes the salary levels of major investment services positions and factors impacting salaries. We will look at investment bankers, fund managers, securities traders, financial analysts, among other professions. The findings provide a reference for job seekers and firms in the investment services industry.
Base salaries of investment bankers reach over $100,000 for junior roles
Investment bankers provide advisory and capital raising services for corporations and advise on mergers, acquisitions, and corporate restructuring. According to Wall Street Prep, base salaries for first year investment banking analysts range from $85,000 to $100,000. Second year analysts earn $90,000 to $115,000 in base salary. At associate level, base compensation is $130,000 to $180,000. Vice presidents take home $180,000 to $250,000 in base pay, while managing directors earn over $500,000 in salary and bonus.
Fund managers at top firms earn millions in compensation
Fund managers make investment decisions and manage portfolios for mutual funds, hedge funds, pensions, endowments, and other institutional investors. According to CNBC, top hedge fund managers earned between $200 million to $3 billion in 2020. Traditional mutual fund managers also earn lucrative compensation, with median pay around $300,000. Portfolio manager salary varies greatly based on assets under management and fund performance.
Securities traders earn over $100,000 with bonuses and commissions
Securities traders buy and sell stocks, bonds, derivatives, and other securities for investment banks, hedge funds, and asset management firms. Average base salaries for junior traders are around $70,000 to $90,000, while senior traders earn $150,000 to $250,000. Significant bonus payments and commissions based on trading profits further boost total compensation. High performers easily make over $500,000 per year.
Financial analysts salaries range from $60,000 to $150,000
Financial analysts produce investment research, financial models and earnings estimates for stocks and bonds. According to salary data from Payscale, entry level financial analyst salaries range from $50,000 to $70,000. Analysts with 3-5 years of experience earn $65,000 to $100,000 in base pay. Senior analysts take home $100,000 to $150,000, with total compensation reaching $200,000.
In summary, American investment services professionals earn lucrative salaries due to high demand for their skills. Significant differences exist based on seniority, firm size, and performance. However, six figure base salaries are common for experienced professionals. Ongoing talent shortage ensures high pay in the investment services industry.