Private client investment associates work closely with portfolio managers to service high net worth individuals and families. Their compensation reflects the client-facing nature of the role. According to online sources, the base salary for private client investment associates in the US typically ranges from $80,000 to $150,000. With bonuses, total compensation can reach $200,000 to $300,000. Geography, firm size and performance impact pay levels. The career path often leads to becoming a portfolio manager down the road.
Base salaries from $80,000 to $150,000 for private client investment associates
Entry level private client investment associates straight out of undergraduate programs often earn between $80,000 to $100,000 in base salary. With 2-3 years of experience, base salaries rise to $100,000 to $150,000. Larger firms and those based in major financial centers like New York and San Francisco tend to pay towards the higher end.
Bonuses increase total compensation to $200,000 to $300,000
Bonuses are a significant component of total compensation for private client investment associates. First year bonuses may be 10% to 30% of base salary. For more experienced associates, bonuses can reach 50% to 100% of base pay. Strong investment performance and contributions to winning new client business drive bonus amounts. Total compensation inclusive of base and bonus is often $200,000 to $300,000.
Client facing role on the path to portfolio manager
Private client investment associates interact closely with clients alongside portfolio managers. Their modeling, analytics and relationship skills prepare them to eventually take on portfolio management responsibilities. It’s common for associates to be promoted to junior portfolio manager after 3-5 years. Later they may be managing their own set of private clients as a senior portfolio manager.
Larger firms pay more, especially in major financial hubs
Within private client investment management, larger firms with billions in assets under management tend to offer higher compensation. Associates in New York City or San Francisco also earn 10% to 15% more in base and bonus than those in other regions of the country. Candidates with MBAs from top programs may receive signing bonuses.
Performance metrics impact bonus amounts
The bonuses portion of total compensation for private client investment associates depends on personal as well as firm investment performance. Associates are measured on client satisfaction survey results, new clients brought in, and portfolio metrics like risk adjusted returns. Outperforming benchmarks like the S&P 500 results in larger associate bonuses.
Private client investment associates earn strong base salaries in the $80,000 to $150,000 range. Bonuses dependent on performance push total compensation to between $200,000 and $300,000. Associates gain client exposure that helps propel career advancement to portfolio manager levels over time.