The investment management industry in America offers lucrative compensation packages to professionals across all levels. With trillion-dollar assets under management, top firms like BlackRock, Vanguard, and State Street pay the highest salaries. At junior levels, investment management salaries in the US range from $60k to $150k. For mid-career roles like portfolio managers and research analysts, compensation is $150k to $300k. Senior executives and partners earn total pay of $500k to over $1 million. Major factors influencing salaries are firm type, assets under management, role and experience. New York, San Francisco and Chicago offer the highest pay. This article provides a detailed overview of salary ranges in American investment management firms.
Associate investment management salaries at top US firms
At leading asset management firms in America, salaries for junior investment professionals or Associates range from $60,000 to $150,000. Top-paying firms like BlackRock, Vanguard, and State Street compensate new Associates with base salaries of $90k to $120k. With bonuses included, first-year all-in compensation reaches $140k to $180k. Smaller boutique firms pay Associates closer to $70k base, with bonuses between $20k to $50k. Associates with 2-3 years of experience earn between $100k to $150k total, with base salaries ranging from $80k to $120k. The largest and most prestigious firms pay the highest salaries due to brand value and sheer size of assets under management. BlackRock manages over $10 trillion and pays Associates more than regional firms managing under $10 billion in assets.
Portfolio manager salary ranges at top investment firms
Portfolio managers are mid-career professionals with 5-10 years of investment experience. At top asset management firms in America, portfolio manager salaries range from $150k to $300k. Base salaries are between $120k to $180k, with bonuses from $50k up to over $200k for top performers. New York and San Francisco based investment managers earn the highest compensation packages. Chicago, Boston, Los Angeles and other major cities also pay portfolio managers total compensation of $200k+ annually. Specific factors determining pay include assets under management, investment performance, client relationships and overall profitability contributed. Higher bonuses go to portfolio managers beating benchmarks and attracting new client capital.
Managing director salary and compensation at asset managers
At senior levels, investment firm Managing Directors earn total compensation of $500k to over $1 million. Base salaries range from $250k to $500k for Managing Directors and equivalent roles like Senior Portfolio Manager. Bonuses exceed base pay in most cases, with industry averages between $300k to $600k at top firms. Total MD pay reaches over $1 million at mega asset managers like BlackRock, Vanguard, State Street, Fidelity, Wellington, and top hedge funds. Specific compensation depends on investment performance, client relationships, new capital raised, and leadership responsibilities. Equity ownership, carried interest and deferred compensation boost pay further for executive MDs. New York, San Francisco and Chicago offer highest MD salaries in investment management.
Chief Investment Officer salaries at top asset management firms
At the executive level, Chief Investment Officers (CIOs) earn total compensation of $750k to over $20 million. Base salaries range from $500k to $1 million for CIOs at top investment firms. Bonuses average $1 to $5 million, but can reach over $10 million for outstanding performance. BlackRock’s CIOs earn between $10 to $20 million annually. Vanguard, State Street, Wellington pay their CIOs over $10 million total. Even regional firms with under $50 billion in AUM pay CIOs over $5 million. Total compensation depends on assets managed, investment performance, new capital attracted, and leadership scope. Major drivers of high CIO pay are franchise value of the firm and total employee assets under management.
Investment management salaries in America range from $60k for entry-level Associates up to over $20 million for CIOs at top firms. Compensation heavily reflects firm size, assets under management, role scope and individual performance. New York, San Francisco and Chicago offer the highest salaries due to concentration of industry giants. Large megafunds like BlackRock and Vanguard pay the highest due to trillion-dollar assets managed by employees.