A little bit about Research Associates...

I would say unless you have a huge desire to do research, cover companies, and write reports, then stay far, far, away from research. A few reasons why I say this: one, if you are expecting a glamarous job at an investment bank, then research is certainly not it. I would put research near the syndicate desk as far as status and prestige in a bank, well below M&A and Sales and Training. Two, among the first people to be fired at the sign of a downturn are the research analysts. They are a nice add-on service to provide to institutional investors, but they are also a cost center. Finally, the glamour days of research are gone. In the late 90's research analysts were called over the wall to provide insights on M&A deals and capital raises. After Elliot Spitzer, this was outlawed and research is kept far away from any transactions.

As far as pay is concerned, it will be less than on the deal and trading side of the house. Probably $130K-150K total compensation for a first year associate. Top Research Analysts at bulge bracket banks can make $2+ million a year, but that is pretty rare. The hours an associate keeps are probably 60-70 hours a week, more during earnings season when earnings reports have to be turned pretty quickly.

I hope this doesn't dissuade you from becoming a Research Associate, but rather lets you know that it's not the glamarous world of M&A or Sales and Trading. I personally want to move into M&A and do not consider research as an alternative.

I have heard a very differing opinion as far as exit positions in research from various other investment bankers saying that hedge funds are very interested in hiring away research associates. How about mobility within a firm?

The main reason I want to know is that my wife is going start a business after I get out of B school. I think the equity research will allow me to not work 90 hours per week and get the business started. It seems that the pay for research is not much different than M & A initially.
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Lanter 1

"Lunch is for wimps."

Don't mean to disagree, but I'm trying to educate myself a little more about this. Could you post a reference for the following information:

"I think a first-year post-MBA in investment banking may make 300-350K, and a first-year in research may make 200-250K."

With the recent state of the financial sector, does this still hold true? Or is the key word in your statement 'may'?

Could you answer my primary question as to the source of your information?

Thanks

I've heard, first hand, that research people work hellish hours.

It's not published in a book or a case study. It's mostly just hearsay. You can take it with a grain of salt if you'd like

Bases on both jobs will be $95K and that can be verified by any career services employment report from any major school. Bonuses will vary quite a bit due to the hours worked and value of the work.
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It's not published in a book or a case study. It's mostly just hearsay. You can take it with a grain of salt if you'd like

Makes sense, thanks for clearing it up.

I have seen that but it does not break down per function. I am almost certain that research does not make the same as M & A after 2 or 3 years.
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Lanter 1

"Lunch is for wimps."

Oh OK...just thought it would be a decent data point if you haven't seen it. That is the only data I've seen too. I'm not sure about research analyst positions, but I am pretty sure your assumption is correct.

Yeah, I saw that before and it was helpful. thanks for the input.
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Lanter 1

"Lunch is for wimps."