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Deciding between a career on the sell-side or buy-side? Investment banks still pay (much) more.

Investment banking or asset management: which pays the most?

Asset management may be being touted as the place to work for financial professionals, the pay gap may be closing, but big bonuses are still the preserve of the investment banks.

Throughout your career, you are likely to earn 77% more in bonus payments working for an investment bank than an equivalent level role in asset management, according to research from real-time salary data specialists Emolument.com. Average bonuses for senior asset management professionals are £120k, suggests the research, compared to £243k for a managing director role in an investment bank.

Suffice to say, the bonus payments at the junior end of the market in the tables below look rather small – average bonuses for first year analysts in London last year were £22k, according to previous research from headhunters Dartmouth Partners.

Emolument’s figures, which come from over 4,000 people working in asset management and investment banking, likely include front and back office jobs. Nonetheless, they indicate that despite all the regulatory intervention on banking bonuses, the sell-side still pays more than the buy-side.

Asset-management-pay

Related articles:

Hedge fund ramps up pay by 21%, and it’s hiring

Ex-BNP Paribas managing directors launch new hedge fund

Why it pays to make it to partner at a hedge fund

 

 

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AUTHORPaul Clarke
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    Dean
    8 August 2014

    There are too many generalizations in such a study. The Quants, Technologists and Traders at Hedge Funds and Prop Trading firms fair favorably against the sell side. To break the information down to actual role and maybe the strategies the firms are running would give a very different picture. The flow of candidates from sell to buy side shows this. How are Emolument's survey's verified? You have generalized "buy side" as Asset Managers, do the figures take into account Hedge Funds and Prop Trading?

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