Investment management operations is a vital function in the investment industry, providing critical support to portfolio managers and traders. While compensation may not rival front office roles, operations careers come with strong job security and steady salary growth. This article analyzes investment ops salaries across different firms, positions, and geographies, and explores career advancement opportunities.
Junior investment operations salaries range from $50k to $80k
Entry-level investment ops roles like analyst and associate have base salaries ranging from $50,000 to $80,000. With bonus, first year total compensation often falls between $70k to $100k. Top firms like BlackRock and Vanguard pay on the higher end, while smaller shops trend lower. Geographic location also impacts pay, with New York and San Francisco topping the charts. Within investment ops, compensation varies by asset class and function – equity ops tends to pay better than fixed income, and specialized roles like corporate actions command a premium.
Investment ops VPs and AVPs earn $100k to $150k in total comp
With 3 to 6 years experience, investment ops professionals reach the Vice President and Assistant Vice President levels. Base salaries climb to $100k to $140k, with bonuses from $20k to $50k on top. Some high performers can make VP with just 2 years experience through internal promotions. Total comp ranges from $120k to $180k. Operations VPs often manage small teams and take on supervisory responsibilities.
Directors and senior VPs make $180k to $300k in total pay
After 6 to 10 years, skilled investment operations professionals ascend to Director and Senior Vice President. Base pay reaches $150k to $250k. Bonuses range from $50k to $100k. Total compensation lands between $180k and $300k. At this level, directors have broad team oversight and interact extensively with portfolio managers and traders to solve complex operational issues.
Heads of ops earn $300k+, with managing directors above $500k
The heads of investment operations units have titles like Managing Director, Partner, or Executive Director. Base salaries exceed $250k and bonuses can top $300k. Total comp reaches $300k to $600k+. At megafunds like Fidelity and Capital Group, ops heads earn over $1 million. The very top position, Global Head of Investment Ops, commands multi-million dollar pay packages.
While investment operations does not offer front office-level pay, disciplines like project management, stakeholder engagement, and risk control prepare professionals for senior leadership roles. With steady career progression, top operations executives earn incomes well into the six figures.