As an important role in the financial industry, the entry level salary of senior investment analysts is affected by many factors. This article will analyze the main factors like location, firm type, qualification and experience based on the key word senior investment analyst entry level salary. It also gives career advice for junior analysts aiming to enter investment banking or asset management firms. Multiple occurrences of key word senior investment analyst entry level salary and higher word investment analyst will present in an organic manner.
Geographic location leads to major salary differences for entry level investment analysts
The most important factor determining the entry level salary is the geographic location, especially comparing between top financial centers like New York/San Francisco and other lower tier cities. For example, the median base pay for a first year investment analyst is around $85K in New York while only $65K in Dallas. The lower living costs in Dallas doesn’t make up the big salary gap. So investment analysts need to choose jobs in top tier cities to maximize compensation. In addition to base pay, the year end bonus also differs a lot by city.
Bulge bracket banks offer higher compensation than boutique firms for junior investment analysts
Besides location difference, the type of employers also matters. Bulge bracket investment banks like Goldman Sachs and JP Morgan tend to pay 20-30% more than smaller boutique firms for the same entry level investment analyst role. But boutique firms may provide better work life balance. So analysts should consider both pay and culture fit when choosing between large and small firms. The tradeoff is higher base pay vs better quality of life.
Advanced degrees boost entry level investment analyst salary despite lack of experience
Even without direct relevant experience, investment analysts with advanced qualifications like CFA, MBA or PhD enjoy a pay premium at the entry level. The coursework and internships required to obtain these degrees equip analysts with specialized financial knowledge and modeling skills. So employers are willing to pay more for them. For example, senior investment analysts with a MBA can earn 10-15% higher compensation than those only with a bachelor’s degree at the same experience level.
Prior internship experience leads to higher starting compensation for investment analysts
Lastly, junior analysts who completed relevant internships tend to receive higher entry level offers than candidates without any experience. Internships provide exposure to real projects and networking opportunities with senior professionals. So employers see higher potential in analysts with internships under their belt and hope to retain them full time. Even 1-2 internships could boost the entry salary by $5K-10K.
The main factors affecting senior investment analyst entry level salary include geographic location, firm type, advanced degrees and internships. New York/San Francisco pay much higher than other cities. Bulge bracket banks offer higher compensation than boutique firms. Advanced degrees like MBA increase pay despite lack of experience. Even short internships can boost entry salary.