The salary for entry level investment analysts is an important consideration for those looking to enter the finance industry. With the right experience and skills, junior analysts can expect strong compensation growth over their careers. Core factors determining pay include firm type, sector focus, and geographic location. This article will analyze entry level investment analyst salaries across major finance hubs and top firms. We’ll also look at key drivers of salary growth and provide tips for maximizing earnings potential as an investment analyst over time.
Base pay and bonuses at top firms
At leading investment banks, hedge funds, and asset managers, base salaries for junior analysts straight out of undergraduate programs typically fall between $85,000-$95,000. With bonuses, total first year compensation reaches $140,000-$170,000 at firms like Goldman Sachs and J.P. Morgan. The largest Wall Street banks tend to pay top dollar, but base pay is largely similar across reputable shops focused on investment analysis and financial modeling. Bonuses vary more widely based on firm revenue and individual performance.
Salary growth with experience
The career trajectory for investment analysts sees compensation rise quickly in the early years. After 2-3 years, an analyst may be promoted to associate with a base salary around $125,000-$150,000 and total pay of $200,000-$300,000 including bonus. Further promotions to vice president, principal, and eventually managing director or partner can boost total compensation above $500,000-$1,000,000 at top tier firms.
Pay differences by sector expertise
Investment analysts focused on high-paying sectors like M&A advisory and equity capital markets may earn more than those in equity research or fixed income. And even within sectors, specialized knowledge of key industries like tech, healthcare, and energy can drive higher pay at elite boutiques. But ultimately, broad analytical skills and modeling expertise provide salary upside regardless of sector.
Higher pay at major urban hubs
Location also impacts investment analyst salary, especially early in one’s career. Top global finance capitals like New York, London, Hong Kong, and Singapore offer the highest compensation. However, junior analysts in cities like Boston, Chicago, and San Francisco still earn well above the average with abundant opportunities to advance.
In summary, entry level investment analysts at leading firms can expect base salaries of $85,000-$95,000 and total compensation around $140,000-$170,000. With experience, salaries grow quickly into the multiple six figures. While sector and location impact pay, the foundational skills of financial modeling and data analysis drive earnings potential across investment analyst roles.