Investment analysts are professionals who provide research and insights to help investors and firms make investment decisions. Their compensation is an important factor when considering a career as an investment analyst. In this article, we will take a closer look at the salaries of junior and senior investment performance analysts.
There are several factors that affect compensation for investment analysts, including experience level, firm type, and performance. Junior analysts straight out of college can expect lower salaries, while senior analysts with 5-10 years of experience command much higher pay. Analysts at top investment banks and hedge funds also earn more than those at smaller firms. Bonuses and profit sharing may significantly increase total compensation as well.
Base salary ranges for junior investment analysts
Junior investment analysts who are just starting out can expect base salaries between $60,000 to $90,000. Analysts with 1-2 years of experience may earn $70,000 to $110,000.
According to Glassdoor, the average base salary for a junior investment analyst in the U.S. is $83,056. However, base pay can vary significantly by firm and city. Junior analysts in New York City may earn 10-15% more than the national average base.
Base salary ranges for senior investment analysts
Senior investment analysts with at least 5 years of experience can command much higher salaries. Base pay typically ranges from $110,000 to $250,000.
According to Glassdoor, the average base for a senior investment analyst in the U.S. is $149,803. Senior analysts at top investment banks and hedge funds in major cities like New York and San Francisco can earn $200,000+ in base salary.
Bonuses and profit sharing
Bonuses are a significant component of compensation for investment analysts, especially at performance-driven firms like hedge funds. Annual bonuses may be 50-100% of base pay. Profit sharing and performance incentives may boost total compensation even higher for strong performers.
The highest paid senior analysts may earn $500,000 to over $1 million annually when factoring in bonuses and profit sharing.
Other factors influencing investment analyst pay
Aside from seniority, firm type, and performance, there are other factors that influence investment analyst compensation:
– Education background – Analysts from top universities tend to earn more
– Firm size/prestige – Analysts at bulge bracket banks earn more than boutiques
– Industry/sector – Comp is higher in banking/hedge funds vs. mutual funds
– Certifications like CFA/CPA – Charterholders can command a pay premium
– Geographic location – Salaries in NYC/San Francisco higher than national avg
In summary, junior investment analysts straight out of college can expect base salaries of $60,000 to $90,000, while senior analysts with 5+ years of experience typically earn $110,000 to $250,000 in base pay. Bonuses and profit sharing may significantly increase total compensation, with some senior analysts earning over $500,000 annually. However, salaries can vary greatly depending on firm, location, performance, and other factors.