With more fresh graduates flocking into the investment sales industry, getting an entry level analyst position has become highly competitive. While the work is challenging, investment sales analysts are well compensated for their efforts. Here are some key factors that determine the salary levels of entry level investment sales analysts:
Firstly, the firm matters a lot. Bulge bracket investment banks like Goldman Sachs and Morgan Stanley pay significantly higher base salaries upwards of $100k for fresh undergrads. Boutique firms tend to pay moderately at $70-90k. Within firms, the division also plays a role. Investment banking and sales & trading roles fetch higher pay than research or back office.
Secondly, academic credentials influence starting compensation. Graduates from elite universities get paid more. Merit Scholarship holders and students with stellar academic records are better positioned. Relevant internships and finance credentials like CFA also help secure higher offers.
Thirdly, prior experience commands premium pay. Candidates with investment banking internships or full-time experience in related fields can negotiate better entry level offers.
Fourthly, location determines cost of living adjustments. New York, San Francisco and London being major finance hubs entail higher salaries while Asian bureaus are relatively more frugal.
Finally, performance pay and bonuses depend on firm profits and individual contributions. First year analysts get 20-30% of base pay as bonus on meeting goals. As they rise up the ranks, variable bonus can exceed fixed income.
Bulge bracket banks pay top dollar for investment sales talent
The highest paying employers for entry level investment sales roles are undoubtedly the bulge bracket investment banks. Goldman Sachs, JPMorgan, Morgan Stanley – these giants of Wall Street have the resources to attract best talent. Base compensation for first year analysts can exceed $100,000 at many banks. Signing bonuses of $10-$20k are also common. While hours are long with 100+ hour work weeks, the firms try to compensate with superior benefits. Free meals, transportation and generous time off provide some work life balance.
Boutique firms provide valuable experience at lower pay
Not everyone can land offers at the most elite firms. This creates opportunities at smaller, boutique investment banks that still represent attractive starting points for aspiring finance careers. While the pay is lower around $70-90k on average, these firms promise a better learning experience and potential for quicker promotions. The work hours tend to be marginally better as well. Many successful finance professionals have traversed the boutique path early on before transitioning to a larger firm. Boutique shops also tend to value skills and experience over academic pedigree.
Academic record gives negotiating leverage
A degree from an Ivy League or other top university provides excellent leverage while negotiating job offers. Similarly, students who were recipients of merit scholarships, graduated with honors, or held key leadership positions can command higher entry level pay. A strong academic transcript with high GPA scores in quantitative disciplines also helps make the case for better compensation. Beyond university pedigree, having completed relevant certifications like the Chartered Financial Analyst(CFA) bolsters one’s profile.
Prior internships lead to junior level roles
The most lucrative entry level investment sales roles are not really for fresh graduates but rather candidates with a year or more worth of relevant experience. Many analysts start off as summer interns and receive return full-time offers extending this prior experience. Similarly, applicants who interned at multiple firms or worked full-time in related areas like financial consulting tend to get placed directly in junior level roles and earn substantially higher salaries.
Cost of living determines geographic differences
Location is a major factor in determining entry level investment sales pay. Financial hubs like New York, London, Hong Kong and Singapore command the highest premiums given the high costs of living. Company headquarters also tend to pay more. Asian offices in developing markets tend to be the most frugal. Careful consideration of cost of living differences and taxes is important when comparing offers from different geographies.
In summary, investment sales compensation for entry level analysts depends on employer reputation, academic factors, prior experience and geographic location. While base pay ranges $70-120k, performance bonuses can drive total earnings much higher over time.