The Finance Salary in the 21st Century
If you are looking at getting into the finance industry there is a very good chance that you are interested in money – both other peoples and your own! The finance industry is a great place to make a lot of money – if you understand your industry, know what you are doing and are good at it you can really rake in the cash!
Like all employment sectors, the finance salary is dependent on your experience, qualification (ability) and level of responsibility. Many financial services career roles also have generous bonus schemes. Let’s go through different finance salary opportunities (all figures in USD$) in the five broad areas of finance.
- 1. Commercial banking
Commercial banking is concerned with banking services to individuals and businesses. Due to the size of the commercial banking sector and the competition for provision of services, salary levels tend to be lower than other financial services careers. Entry level positions such as clerks, officers, analysts start from $25k to $50k depending on experience. Senior specialist officers like credit analysts, mortgage managers can command $55k-$80. Branch managers, senior loan officers command $100k to $120k. Senior division managers are usually getting upwards of $150k. The big bucks are made by the executives (depending of the size of the firm and qualifications) range from $250k to $500k. - 2. Corporate finance
Corporate finance careers can vary depending on if you work with a small firm (100 or less employees) or large corporate companies. Entry level finance associates, analysts and researchers will start from $35k - $50k with more experienced and specialised associates getting $55-$80k. An senior associate with tax and accounting background can easily command $100k-$130k. Assistant treasurers that report to the CFO commands $80-$120k. The CFO has the ability to earn $260k-$350k at major firms (half of that at the smallest firms). - 3. Financial planning
Financial planners working for a finance firm command a medium salary of $70k and can go up to $200k for highly experienced planners holding a profitable portfolio of investments. Many financial planners own their own business so consultancy fees as well as commissions from investment could push their income even higher. - 4. Investment banking
Due to the presence of commission earning in investment banking and the demand for higher experience and qualification, the salary potentials and base salaries at entry level in investment banking are higher than commercial banking. The figures quoted below include typical bonuses.
Entry level analysts can take home $80k-$100k (more for MBA graduates). Entry level associates command up to $150k. Within 3 years (if you survive that long, you are destined to make it!!) both the analyst and associate can look to double their take home pay.The big money starts at vice president level an average of $500k. Presidents, directors and partners of investment banks have been known to command from $700k to multi million dollar pay packets!
However, salary figures in investment banking can be volatile depending on economic circumstances. The recent global financial crisis has hit the investment banking industry hard with job losses and asset bubbles bursting. Investment banking is reliant on commission and bonuses. When the industry suffers, remuneration disappears. - 5. Insurance
Entry level finance opportunities in insurance include underwriting, agent/broker(sales) and claims adjuster. These positions can expect a salary of $40k-$80k depending on experience. Junior actuaries expect $50k-$80 while those with extensive experience can earn from $160k to $400k. Managers in insurance roles, depending on their responsibility command from $100k-$150k while division heads and executives are commonly getting $250k to $500k pay packets.
All finance career opportunities depend on experience and qualification. Additional expertise and specialisation can give you extra credit. Like all industries, if you are prepared to manage a team and take on strategic as well as senior operational roles, your remuneration potential increases dramatically.