Investment analyst is a promising career path for finance professionals. However, entry level investment analyst salaries vary greatly across firms and sectors. This article will provide an overview of typical base salaries, bonuses, and career growth opportunities for entry level investment sales analysts at top firms like investment banks, private equity, hedge funds, etc. We will also compare pay scales at different tiers of firms as well as major financial hubs. Aspiring investment analysts should gain a comprehensive understanding before entering the field.
Base salaries for entry level investment analysts range widely from $65k to $150k
The base salary for a first year investment analyst straight out of undergraduate can range from $65,000 to $150,000 across different firms and geographies. At top elite boutique investment banks like Moelis, Evercore and Centerview, first year analyst base salaries exceed $100,000. Large bulge bracket banks like Goldman Sachs, JP Morgan also pay close to six figures for junior analysts in major cities. However, local firms can pay as low as $65k for entry level roles. In terms of locations, New York and San Francisco tend to offer the highest compensation scales.
Bonus payouts at top firms can easily double total first year compensation
While base represents only a portion of total compensation, performance bonuses constitute a significant component for investment analysts. At top investment banks, year end bonuses for first year analysts typically fall between 50% to 100% of base salaries. Therefore, total compensation at elite boutique and bulge bracket investment banks can reach $200k to $300k once bonus is factored in. Bonuses are based on firm performance and individual contributions. However, lower tier local firms may not have bonus programs for junior employees.
Career progression is rapid but demanding across investment analyst roles
The career path for successful investment analysts sees rapid wage growth but also increasing responsibilities. After an analyst program of 2-3 years, candidates can expect promotions to associate roles with base salaries exceeding $200k. Further progression to vice president level is possible after 3-5 years as associate. However, the path to upper management is highly competitive. Candidates must demonstrate excellent modeling skills, financial analysis capabilities, client management and sales abilities. The hours are long, often stretching to 100+ hours per week during busy periods.
Top paying sectors include investment banking, hedge funds and private equity firms
While investment analyst positions exist across many financial sectors, the highest compensation is found at elite investment banks, marquee hedge funds and top tier private equity firms. Bulge bracket investment banks provide the most structured training programs for junior analysts. Hedge funds and private equities seek candidates with demonstrated passion, intellectual curiosity and commitment for investing. All roles are client-facing with pressure to generate profits, thus requiring strong work ethic and interpersonal skills. Ultimately, finding the right firm culture fit matters along with compensation.
In summary, entry level investment analysts at top financial firms can expect base salaries from $100k to $150k as well as year end bonuses between $50k and $100k. However, compensation varies widely based on firm prestige, sector, and geographic location. Long hours and demanding work are exchanged for rapid career growth and wage increases. Finding the right firm with mentorship opportunities is key for aspiring investment analysts.