2018 financial compensation survey · 2.2% feel fairly compensated 52.9% yes 47.1% no 3 median...

2018 FINANCIAL COMPENSATION SURVEY F I N D I N G S A N D R E S U LT S

NOVEMBER 2018

1

Dear Colleagues,

As the premier professional organization for investment professionals in the Bay Area, CFA Society San Francisco is dedicated to delivering reliable and trustworthy information, thought leadership initiatives, and resources for career support and development to our members and stakeholders.

Thus, we are pleased to announce the highly anticipated findings of the 2018 Financial Compensation Survey. The survey provides a unique, region-specific analysis of compensation levels for investment and financial professionals. The accompanying whitepaper captures the findings of the survey, providing an overview of the survey-wide results.

We thank those of you who participated in the survey and contributed to this important market resource. We are confident the information contained in this document will be of value to you.

Best Regards,

Anne O’Brien Executive Director, CFA Society San Francisco

2018 FINANCIAL COMPENSATION REPORTL E T T E R F R O M S O C I E T Y L E A D E R S H I P

Executive summary

Access to accurate and data-driven information plays a significant role in the ability of financial and investment professionals to effectively perform in their careers. The same is true to successfully advance one’s career.

The 2018 CFA Societies Financial Compensation Survey seeks to provide access to this vital information. This report is a compilation of the results from a survey on compensation practices in the San Francisco area conducted earlier this year; 1,084 professionals completed the survey.

Remaining true to the stated commitment to provide an accurate snapshot of the compensation levels for the entire financial and investment industry, the survey findings are presented to demonstrate compensation based on the most popular positions and other demographics.

The survey requested self-reported data on numerous aspects of compensation. In addition to covering base salary and total compensation, the survey addressed the respondent’s CFA Charterholder status, level of education, and occupation. Information on the type and size of the firm as well as the amount of assets under management were included in the survey. The survey captured expected annual salary change data, plus the respondent’s view on the adequacy of compensation and the desire to explore other job opportunities.

The 2018 Financial Compensation Survey data and exhibits are intended to provide general guidance for comparing compensation levels with overall values for key categories. Note that actual compensation potential may vary relative to the numbers generated by the survey given the use of relatively broad category definitions. Also, the estimation of compensation based on any single factor may not predict reasonably accurate estimates. Details surrounding actual job responsibilities and the confluence of multiple factors may result in higher or lower compensation levels.

2

90%of respondents holding the CFA®

Charter report that the designation has helped their career.

2018 FINANCIAL COMPENSATION REPORTE X E C U T I V E S U M M A R Y

Years of experience< 2 years

2 – 5 years

5 –10 years

10 – 20 years

20 + years

4.9%15.1%26.1%37.0%17.0%

EducationAssociate degree

Bachelor degree

Graduate degree

Doctorate

0.3%52.1%45.1%2.2%

Feel fairly compensated

52.9%Yes

47.1%No

3

Median total compensation*

Non-Charterholder CFA Charterholder

$137,750$224,125

$180,000$273,000

Bachelor degree

Graduate degree

Our data show that professionals who attain the CFA designation and/or a graduate degree tend to have higher compensation levels.

* Median total compensation figures listed do not control for other variables such as years of experience and job title.

Feel valued by their company

69.5% Yes 27.0% No 3.6% N/A

Charterholder status

62.1% Yes 19.1% Candidate 18.8% No

2018 FINANCIAL COMPENSATION REPORTR E S P O N D E N T P R O F I L E S

4

Employer size< 50

50 to < 250

250 to < 500

500 to < 2,500

2,500 to < 5,000

> 5,000

26.4%16.5%7.7%

10.4%6.5%

32.4%

AUM of firm< $500 million

$500 million to < $2 billion

$2 billion to < $50 billion

> $50 billion

Not Applicable

9.2%9.5%

25.3%34.8%21.1%


5

Fifteen most common occupationsOther*

Financial advisor/broker

Financial analyst (corporate)

Buy-side research analyst (equity)

Consultant

Institutional sales representative/relationship manager

Portfolio manager (equities)

Bank/trust/private client portfolio manager

Manager of managers/director of investments

Risk manager

Buy-side research analyst (fixed income)

Chief investment officer

Sell-side research analyst (equity)

Accountant/auditor

Client services

8.9%7.4%7.1%6.2%5.3%4.7%4.0%3.5%3.0%3.0%3.0%2.8%2.6%2.5%2.5%

Organization typeInvestment management firm

Investment bank, commercial bank, brokerage firm, trust company

Other

Consulting, accounting, law firm

Hedge fund or fund of hedge funds

Family office

Insurance company

Government agency/department

Corporate plan sponsor

Endowment, foundation, other not-for-profit

Educational institution

Rating agency

42.3%21.3%15.0%6.1%4.3%3.0%1.9%1.7%1.5%1.2%1.1%0.7%

*Respondents reported a wide variety of other occupations such as product management, software engineer, and data analyst/scientist.


The most commonly cited reasons for looking for a new role were pursuing more challenging work/career advancement followed by higher compensation.

Reason for looking for a new role Very likely Likely

Better work/life balance 3% 3%

Higher compensation 14% 22%

More challenging work/career advancement 19% 23%

Other 2% 2%

Poor culture/lack of respect 7% 5%

Recently completed degree/obtained certification 0% 0%

6

Opportunity for advancement within company

3.1% N/A

21.3% No

23.0% Not sure 52.6%

Yes

Likelihood of looking for a new role in 2018

37.9%Unlikely

26.1% Likely

14.5% Very unlikely21.4%

Very likely

2018 FINANCIAL COMPENSATION REPORTF I N D I N G S A N D R E S U LT S

Types of compensation in addition to base salary

Primary Determinant of Bonus

Cash/bonus performance

Employer 401(k) contributions

Restricted stock awards/phantom shares

Profit sharing

Deferred /multi-year earnings

Stock options

Commission/ a sales bonus

84%63%21%20%11%7%6%

Discretionary

Overall firm performance

Business unit/division performance

Other factors related to individual performance

Individual investment performance

Individual financial contribution

Commissions generated

30.4%24.0%22.0%13.4%4.6%4.2%1.4%

Expected change in total compensation

Decline 3.7% Stay the same 17.2%

Increased 10–20% 22.0%

Increased > 20% 12.2%45.0%Increased 0–10%

Discretionary and overall firm performance were the top two determinants of bonus.

7


8

How respondents wish their compensation was structuredOccupation

Other

Financial analyst (corporate)

Financial advisor/broker

Buy-side research analyst (equity)

Consultant

Institutional sales representative/relationship manager

Portfolio manager (equities)

Bank/trust/private client portfolio manager

Manager of managers/director of investments

Risk manager

Buy-side research analyst (fixed income)

Chief investment officer

Chief financial officer

Sell-side research analyst (equity)

Accountant/auditor

Client services

Manager research (equity)

Portfolio manager (fixed income)

Operations/reconciliation

Buy-side research analyst (quantitative)

Buy-side research analyst (alts/other)

Manager research (alternatives)

Investment banker

Portfolio manager (indexed/alts/other)

Wholesale/intermediary sales representative

Performance analyst

Strategist/economist

Marketing manager

Private client professional (other)

Credit analyst (rating)

Portfolio manager (quantitative)

64.4% / 23.8% / 9.9% / 1.8%

74.9% / 17.1% / 6.9% / 1.2%

53.7% / 26.9% / 7.6% / 11.9%

53.6% / 36.5% / 9.2% / 0.7%

65.4% / 23.4% / 8.3% / 3.0%

47.2% / 40.9% / 9.7% / 2.2%

51.6% / 31.2% / 15.8% / 1.3%

69.2% / 23.6% / 5.7% / 1.6%

60.7% / 26.8% / 11.2% / 1.3%

66.9% / 23.4% / 7.0% / 2.6%

55.6% / 35.6% / 7.6% / 1.2%

56.6% / 25.8% / 10.6% / 7.1%

62.3% / 22.0% / 13.9% / 1.8%

60.8% / 33.1% / 4.3% / 1.8%

79.1% / 17.1% / 3.3% / 0.4%

70.5% / 19.9% / 6.9% / 2.8%

71.5% / 23.8% / 4.3% / 0.4%

59.9% / 31.6% / 8.3% / 0.2%

77.8% / 18.1% / 2.6% / 1.5%

51.7% / 36.9% / 5.1% / 6.3%

61.1% / 32.7% / 4.5% / 1.7%

66.4% / 23.5% / 9.1% / 1.1%

57.5% / 36.9% / 5.0% / 0.6%

62.0% / 27.5% / 9.9% / 0.6%

45.7% / 39.7% / 7.3% / 7.3%

72.6% / 18.3% / 9.0% / 0.0%

63.9% / 25.9% / 9.1% / 1.2%

69.2% / 22.5% / 7.3% / 1.1%

64.6% / 22.1% / 5.4% / 7.9%

77.3% / 20.3% / 2.0% / 0.5%

39.2% / 49.8% / 8.7% / 2.3%

Base Cash bonus Long term Other

Note: Figures represent average of response to ideal compensation.


9

Median and 75th percentile total compensation by occupation

Position Total Comp N Base Bonus Other

Comp

Other 192,500 96 145,800 47,500 20,00075th percentile 314,875 187,500 101,250 54,750Financial advisor/broker 214,000 80 120,000 32,375 27,00075th percentile 301,750 175,000 51,250 140,000Financial analyst (corporate) 140,000 77 111,000 15,000 9,30075th percentile 171,900 136,097 25,000 25,090Buy-side research analyst (equity) 224,000 67 150,000 70,000 10,00075th percentile 355,396 192,500 170,000 66,000Consultant 197,000 57 150,000 30,000 10,00075th percentile 287,000 175,000 75,000 28,000Institutional sales representative/relationship manager 349,000 51 165,000 147,000 50,00075th percentile 657,500 230,000 256,250 130,000Portfolio manager (equities) 310,000 43 190,000 74,000 30,00075th percentile 734,500 211,500 336,250 108,000Bank/trust/private client portfolio manager 203,750 38 162,500 36,000 21,00075th percentile 289,500 190,000 62,750 41,000Manager of managers/director of investments 267,500 33 180,000 68,000 20,00075th percentile 360,000 215,000 148,000 47,600Risk manager 198,000 33 145,000 40,000 15,50075th percentile 284,870 170,000 74,500 46,468Buy-side research analyst (fixed income) 233,800 32 125,000 73,000 18,00075th percentile 353,500 164,000 125,000 65,000Chief investment officer* 383,490 30 212,500 71,500 74,24075th percentile 540,000 250,000 162,500 213,500Sell-side research analyst (equity) 211,625 28 160,000 42,500 10,00075th percentile 281,776 181,250 50,000 20,000Accountant/auditor 145,000 27 126,936 11,100 6,35075th percentile 184,850 153,500 27,000 14,000

continued»

* For certain positions, the Total Comp figure can appear skewed when multiple respondents have no Base, no Bonus and/or no Other Comp to report.

2018 FINANCIAL COMPENSATION REPORTF I N A N C I A L C O M P E N S AT I O N

10



Comp

Chief financial officer 374,000 27 220,000 100,000 30,00075th percentile 499,251 271,500 168,000 129,500Client services 140,000 27 100,000 17,000 17,00075th percentile 188,560 132,500 41,000 26,000

Portfolio manager (fixed income) 285,000 25 172,000 70,000 27,00075th percentile 400,000 210,000 129,500 63,750

Manager research (equity) 159,251 24 130,000 25,000 5,00075th percentile 176,900 137,000 44,750 12,500

Operations/reconciliation 123,000 22 101,000 19,000 5,25075th percentile 154,055 123,000 29,000 14,250

Buy-side research analyst (alts/other) 145,500 20 125,000 25,000 20,00075th percentile 313,520 150,000 150,000 40,000

Buy-side research analyst (quantitative) 255,000 19 160,000 80,000 27,00075th percentile 300,000 173,750 107,500 40,000

Manager research (alternatives) 223,000 19 150,000 42,000 12,00075th percentile 326,000 178,750 75,000 54,375

Portfolio manager (indexed/alts/other) 200,000 19 132,500 47,500 14,25075th percentile 280,000 161,250 87,500 35,000

Investment banker* 174,500 18 142,000 85,000 9,50075th percentile 404,500 200,000 247,000 81,250

Performance analyst 138,000 15 105,000 20,000 18,00075th percentile 184,300 142,500 36,250 22,000

Wholesale/intermediary sales representative 361,000 15 137,500 150,000* 59,60075th percentile 446,500 150,000 235,000* 230,500

Private client professional (other) 180,000 14 97,500 27,000* 18,45075th percentile 266,600 185,500 100,000* 149,438

Strategist/economist 220,000 14 171,500 40,000 18,30075th percentile 482,625 207,500 252,813 82,313

continued»



11



Comp

Credit analyst (rating) 89,750 12 75,000 19,500 5,02075th percentile 148,825 98,750 29,500 5,625

Marketing manager 275,000 12 175,000 37,500 16,00075th percentile 293,500 211,250 86,250 42,313

Buy-side trader (equity) 255,000 11 175,000 90,000 47,50075th percentile 434,000 232,500 100,000 170,500

Portfolio manager (quantitative) 373,000 11 175,000 150,000 35,50075th percentile 639,000 200,000 381,250 104,750

Note* For certain positions, the Total Comp figure can appear skewed when multiple respondents have no Base, no Bonus and/or no Other Comp to report.

Only Reported for positions with more than 10 responses. Base/Bonus/Other Comp/Total Comp figures were calculated independently from each other.Suggestion: The best way to read this chart is to start with the Total Comp column ... and then use the Base, Bonus and Other Comp columns to understand generally how Total Comp is structured.


12

Reported median compensation for those with less than 5 years of experience for selected occupations

Position Total Comp N Base N Bonus N Other

Comp N

Financial analyst (corporate) 93,600 33 82,000 33 10,750 26 5,750 26

Other 111,800 24 95,000 23 12,000 17 15,000 17

Buy-side research analyst (equity) 185,700 15 100,000 15 50,000 15 8,250 10

Buy-side research analyst (fixed income) 147,500 12 90,000 12 40,000 12 11,350 6

Financial advisor/broker 123,750 12 105,000 10 21,000 8 16,500 8

Consultant 91,000 11 82,000 11 20,000 9 4,500 10

Credit analyst (rating) 89,500 9 75,000 9 10,000 7 5,020 6

Client services 91,000 9 70,000 9 9,150 8 5,400 7

Bank/trust/private client portfolio manager 108,100 8 88,000 8 17,500 6 3,550 6

Sell-side research analyst (equity) 146,500 8 125,000 8 25,000 6 10,000 5

Operations/reconciliation 81,500 8 72,500 8 n/a 4 2,500 7

Investment banker 139,000 7 92,500 6 40,750 6 10,000 5

Risk manager 135,100 6 102,500 6 14,500 6 n/a 4

Buy-side research analyst (quantitative) 165,000 5 120,000 5 40,000 5 n/a 4

Buy-side research analyst (alts/other) 110,000 5 90,750 5 20,000 5 n/a 3

Median total compensation for those with less than 5 years of experience is $115,125.

NoteCells in yellow reflect fewer than 5 responses.Base/Bonus/Other Comp/Total Comp figures are median and were calculated independently from each other.Calculation of median statistics only includes those individuals who stated that they are eligible to receive a given form of compensation. Therefore, we would not expect these numbers to add up to the total compensation figure.Suggestion: The best way to read this chart is to start with the Total Comp column ... and then use the Base, Bonus and Other Comp columns to understand generally how Total Comp is structured.


13

Reported median compensation for those with 5 to less than 10 years of experience for selected occupations


Comp N

Other 185,000 27 140,000 27 45,000 19 18,500 24Financial analyst (corporate) 142,500 23 116,750 22 18,000 20 7,800 21Buy-side research analyst (equity) 213,500 22 140,000 22 70,000 22 10,500 14Financial advisor/broker 139,000 19 110,000 17 20,000 12 13,500 16Consultant 169,720 17 142,000 17 19,000 14 9,720 13Portfolio manager (equities) 225,000 12 152,500 12 47,500 12 20,500 10Accountant/auditor 109,450 11 103,000 11 8,000 7 5,725 6Sell-side research analyst (equity) 212,000 10 155,000 10 42,500 10 9,000 7Portfolio manager (indexed/alts/other) 175,000 9 128,000 9 45,000 9 10,200 8Institutional sales representative/relationship manager 178,000 9 120,000 9 55,000 7 42,500 7Buy-side research analyst (fixed income) 258,000 9 125,000 9 92,000 9 15,000 8Performance analyst 133,000 8 100,000 8 15,000 8 21,000 5Client services 140,500 8 93,560 8 23,500 6 10,500 6Buy-side research analyst (alts/other)* 146,000 8 127,500 8 90,000 6 9,000 6Risk manager 153,000 7 115,000 7 20,000 7 11,250 6Manager research (alternatives) 205,010 7 150,000 7 42,000 7 n/a 4Bank/trust/private client portfolio manager 136,500 6 100,000 6 26,000 6 9,000 5Manager research (equity) 161,000 6 121,000 6 37,500 6 10,000 5Buy-side research analyst (quantitative) 243,750 6 160,000 6 86,250 6 12,300 6Private client professional (other) 122,000 5 90,000 5 n/a 4 n/a 4Chief financial officer 240,000 5 150,000 5 n/a 3 n/a 4Buy-side trader (fixed income) 190,000 5 100,000 5 75,000 5 11,000 5Portfolio manager (fixed income) 171,500 5 135,000 5 25,500 5 n/a 3

Median total compensation for those with 5 to less than 10 years of experience is $175,000.


Cells in yellow reflect fewer than 5 responses.Base/Bonus/Other Comp/Total Comp figures are median and were calculated independently from each other.Calculation of median statistics only includes those individuals who stated that they are eligible to receive a given form of compensation. Therefore, we would not expect these numbers to add up to the total compensation figure.Suggestion: The best way to read this chart is to start with the Total Comp column ... and then use the Base, Bonus and Other Comp columns to understand generally how Total Comp is structured.


14

Median total compensation for those with 10 to less than 20 years of experience is $259,000.

Reported median compensation for those with 10 to less than 20 years of experience for selected occupations


Comp N

Financial advisor/broker 259,500 34 130,000 29 48,770 22 42,000 27Other 236,000 29 162,500 28 50,000 25 20,000 23Institutional sales representative/relationship manager 399,000 27 175,000 25 150,000 23 40,000 23Buy-side research analyst (equity) 257,500 26 162,500 26 99,250 24 22,320 17Financial analyst (corporate) 171,700 20 145,000 20 18,650 18 11,875 18Consultant 255,000 20 175,000 18 41,000 16 14,500 16Manager of managers/director of investments 268,000 18 170,000 18 66,000 17 18,000 13Risk manager 263,000 17 160,000 17 55,000 15 30,000 17Chief investment officer 290,000 13 212,500 13 42,500 10 39,341 10Chief financial officer 305,000 13 220,000 13 75,000 10 30,000 11Portfolio manager (equities) 380,000 13 198,000 13 127,000 12 48,000 12Portfolio manager (fixed income) 297,000 12 175,000 12 90,000 11 26,000 11Manager research (equity) 166,250 12 136,000 12 25,000 11 4,500 11Operations/reconciliation 123,000 10 106,000 10 19,000 9 5,250 8Buy-side research analyst (fixed income) 403,000 10 192,500 10 133,500 10 55,000 10Bank/trust/private client portfolio manager 277,500 9 175,000 9 65,000 9 24,720 8Accountant/auditor 195,000 9 157,000 9 30,000 9 6,350 8Portfolio manager (quantitative) 430,000 8 200,000 8 150,000 7 35,500 6Sell-side research analyst (equity) 231,000 8 182,500 8 48,500 8 9,625 6Wholesale/intermediary sales representative 367,000 8 145,000 7 150,000 7 96,500 8Portfolio manager (indexed/alts/other) 205,000 7 150,000 6 50,000 7 35,000 5Private client professional (other) 224,250 7 105,000 7 n/a 4 n/a 4Strategist/economist 220,000 7 170,000 7 40,000 7 18,300 6Buy-side research analyst (alts/other)* 164,000 7 150,000 7 60,000 6 n/a 4Investment banker* 450,000 7 150,000 7 294,500 6 75,000 5Client services 174,500 6 127,000 6 40,000 6 n/a 4Marketing manager 279,813 6 186,000 6 37,500 6 20,500 6Buy-side research analyst (quantitative) 291,500 6 175,000 6 100,000 6 30,000 5Manager research (alternatives) 304,750 6 150,000 5 55,000 5 51,750 6Buy-side trader (equity) 538,000 5 250,000 5 n/a 3 n/a 4


See next page for additional notes.


15

Median total compensation for those with more than 20 years of experience is $350,000.


Cells in yellow reflect fewer than 5 responses..Base/Bonus/Other Comp/Total Comp figures are median and were calculated independently from each other.Calculation of median statistics only includes those individuals who stated that they are eligible to receive a given form of compensation. Therefore, we would not expect these numbers to add up to the total compensation figure.Suggestion: The best way to read this chart is to start with the Total Comp column ... and then use the Base, Bonus and Other Comp columns to understand generally how Total Comp is structured.

Reported median compensation for those with more than 20 years of experience for selected occupations


Comp N

Chief investment officer* 432,750 16 226,000 15 143,500 10 172,500 14

Other 541,000 16 220,000 16 150,000 15 38,000 12

Portfolio manager (equities)* 330,000 16 210,000 15 188,009 14 26,000 13

Financial advisor/broker 283,800 15 200,000 13 38,000 10 78,400 12

Bank/trust/private client portfolio manager 272,000 15 190,000 15 46,000 13 33,500 14

Manager of managers/director of investments 303,500 12 212,500 12 100,000 10 43,400 8

Institutional sales representative/relationship manager 660,000 11 250,000 11 250,000 11 90,000 11

Consultant* 287,000 9 183,500 7 160,095 6 44,000 6

Chief executive officer 390,000 8 327,500 6 n/a 3 100,000 7

Chief financial officer* 550,000 7 325,000 7 200,000 7 235,000 6

Portfolio manager (fixed income)* 543,840 6 226,000 6 395,000 5 97,500 6


16

Compensation satisfaction vs. likelihood of looking for new job

Individuals who do not feel they are fairly compensated report they are more likely to look for a new job than their counterparts who believe they are fairly compensated.

Fairly compensated Not fairly compensated

10.4%

33.8%

21.3%

31.5%

44.6%

30.5%

23.7%

4.2%

Very Likely Likely Unlikely Very Unlikely


17

Survey methodology

MethodAn online survey was deployed to known financial professionals in the region represented by CFA Society San Francisco. Email subscribers of the Society and LinkedIn group members were specifically targeted. The survey was not limited to just these audiences. In addition, this survey was structured so all data gathered was anonymous, with no identifiable information requested.

RespondentsRespondents were financial and investment professionals and totaled 1,084 unique and completed responses.

TimingThe survey was active from May 14 – June 22, 2018.

AssumptionsThe findings from this survey were derived from self-reported data. Because the survey uses sampling methodology and broadly defined positions, survey findings are not necessarily representative of the total population; rather, the survey is designed to provide general information about pay levels within the industry. Earning any degree or professional designation is no guarantee of employment or compensation.

2018 FINANCIAL COMPENSATION REPORTS U R V E Y M E T H O D O L O G Y

18

About the CFA Society

CFA Society San Francisco is the premier professional organization for investment professionals to connect with Chartered Financial Analysts throughout the region. The Society strives to serve its broad membership through relevant educational programs, membership support services and opportunities for advancement such as networking events, discounts on educational materials, and more.

CFA Society San Francisco:• Promotes ethical and professional standards within the investment industry,

• Encourages professional development through the CFA Program and continuing education,

• Facilitates the exchange of information and opinions among people within the local investmentcommunity and beyond, and;

• Works to further the public's understanding of the CFA designation and investment industry.

If you are interested in learning more about earning your charter, or to learn more about CFA Society San Francisco, please visit our website: https://cfa-sf.org or contact us via email: [email protected].

2018 FINANCIAL COMPENSATION REPORTA B O U T T H E C F A S O C I E T Y

https://cfa-sf.org

mailto:info%40cfa-sf.org?subject=

https://cfa-sf.org

2018 financial compensation survey · 2.2% feel fairly compensated 52.9% yes 47.1% no 3 median...

Documents