With the development of capital market, the entry level investment executive has become a popular career choice for college students. However, the salary distribution of this position is not clear for many beginners. This article will analyze the entry level investment executive salary based on data and examples. By looking into the salary range, growth trends and influencing factors in 2023, it provides a comprehensive understanding of the income potential and competitiveness of entry level investment executive jobs.
Base salary for entry level investment executives generally ranges from 70k to 150k USD
According to recruitment data from top investment banks and private equity firms, the base salary of entry level investment executives like investment banking analysts and private equity associates normally falls between 70k to 150k USD. For example, the base salary for first year investment banking analysts at Goldman Sachs and Morgan Stanley is around 100k USD. For private equity firms like KKR and Blackstone, the base pay for associates is between 130k to 150k USD.
Total compensation can reach 200k to 300k with year-end bonuses
Apart from base income, performance bonuses contribute a significant part in entry level investment executives’ total compensation. Top performers usually get year-end bonuses equivalent to 50% – 100% of their base salaries. As a result, the total compensation inclusive of bonuses commonly lands between 200k to 300k for successful first year investment executives.
The salary range depends on firm prestige and business performance
The high end of salary distribution comes from top investment banks like Goldman Sachs and Morgan Stanley, as well as mega private equity firms such as KKR, Carlyle and Blackstone. Boutique firms tend to pay 10% – 20% less. Furthermore, the bonus portion is tied directly to economy climate and deal flows. In boom years total pay can exceed 300k, while in recessions it may drop below 200k.
The salary growth from entry level to mid-career is rapid
As investment executives gain more experience and get promoted to associate and vice president levels, their salary and bonuses increase substantially. Within 3 – 5 years, the total compensation can easily surpass 500k or even 1 million at elite firms on Wall Street. This represents a 3 to 5 times rise comparing to entry level salary. The career growth trajectory is steep for high performers in the investment management industry.
Advanced degree and technical skills drive above-average offers
While the base pay is relatively standardized, applicants with higher qualifications tend to negotiate better offers. Those with CFA, accounting or engineering credentials usually earn 10% – 15% more at the entry level. Mastering financial modeling, valuations and deal execution also helps candidates stand out and increase their starting compensations.
In summary, the typical entry level investment executive salary ranges from 70k to 150k in base income, and 200k to 300k in total compensation with bonuses. The pay distribution concentrates at the upper end among top tier investment banks and private equity firms, and grows rapidly in the first 3 – 5 years of career. Advanced degree and technical expertise further boost negotiable salary offers.