October FINANCIAL COMPENSATION SURVEY

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1 October FIACIAL COMPESATIO SURVEY

2 Letter from the President As a premier professional organization for investment professionals in our region, CFA Society St. Louis is dedicated to being a reliable and trustworthy source of information. We strive to serve our members by providing them the resources to aide in their career development and advancement. ew for our market, we are excited to announce the highly anticipated findings of the 2015 Financial ensation Survey. This survey, which had been void in the market since 2007, provides a regionspecific analysis of compensation levels for investment and financial professionals. This document captures the findings of this survey, providing an overview of the survey-wide results. For those who participated in the survey, I thank you for your contribution to this important market resource. I am confident the information shared in this document will be of value to you. Regards, Mike Schoppet, CFA President, CFA Society St. Louis 1

3 Executive Summary Executive Summary Access to accurate and data-driven information plays a significant role in the ability of financial and investment professionals to effectively perform in their careers. The same is true to successfully advance one s career. However, since 2007 this source of data has been missing, spurring the deployment of the 2015 Financial ensation Level Survey, by CFA Society St. Louis. Remaining true to the stated commitment to provide an accurate snapshot of the compensation levels for the entire financial and investment industry, the survey findings are presented to demonstrate compensation based on the most popular positions and other demographics. Given the imperative to accurately, albeit broadly, define compensation levels of financial professionals in the St. Louis region, CFA Society St. Louis conducted a self-reporting survey. This primary research examines the impact of variables (e.g. tenure, title, CFA designation, education, et al) on compensation levels. In addition, compensation components and desired pay structure were captured, as were annual salary change data. The results are meant to provide a general snapshot of the current state of the market. Median Total ensation Data shows professionals who invest their time in attaining advanced degrees and CFA certification tend to have higher compensation levels than those who don't. $250,000 $200,000 $150,000 $100,000 $50,000 $121,374 $154,250 $168,100 $218,100 $0 Bachelors Degree on-charterholder Graduate Degree CFA Charterholder 2

4 Respondent Profiles Years of Experience Charterholder Status <2 years 3% 2 to <5 years 9% 5 to <10 years 20% 10 to <20 years 39% 20 years or more 29% AUM of Firm <$500 million 5% $500 to <$2 billion 6% $2 to <$10 billion 12% $10 to <$50 billion 34% $50 to <$100 billion 5% $100 billion or more 27% ot applicable 10% Charterholder 83% one 9% Candidate 8% Likelihood of Looking for ew Role in 2015 Education Some college but 1% no degree Associate degree 0% Bachelor degree 44% Graduate degree 54% Doctorate 1% Very Likely 11% Likely 20% Unlikely 41% Very Unlikely 29% 3

5 Respondent Profiles Fifteen Most Common Job Titles Organization Type Consultant 9% Portfolio Manager (equities) 9% Buy-side Research Analyst (fixed income) 7% Portfolio Manager (fixed income) 5% Chief Investment Officer 5% Manager Research (equity) 5% Sell-side Research Analyst (equity) 5% Buy-side Research Analyst (equity) 4% Financial Advisor/Broker 4% Manager of Managers 4% Buy-side Trader (fixed income) 4% Private Client Professional (other) 4% Bank/Private Client Portfolio Manager 3% Risk Manager 3% Manager Research (alternatives) 3% Investment bank, commercial bank, 28% brokerage firm Investment management firm 23% Insurance company 21% Consulting, accounting, law firm 13% Other 7% Endowment, foundation, 3% other not-for-profit Family office 3% Corporate plan sponsor 1% Educational institution 0% Government agency/department 0% Employer Size <50 22% 50 to <250 15% 250 to <500 6% 500 to <2,500 21% 2,500 to <5,000 10% 5,000 or more 26% 4

6 Financial ensation Change in Total ensation Increased more than 20% 9% Increased 10<20% 16% Increased 0<10% 54% Stay the same 16% Decline 4% Primary Determinant of Bonus Other Forms of ensation Overall firm performance 36% Business unit/division performance 24% Discretionary 16% Other factors related to 12% individual performance Individual financial contribution 6% Individual investment performance 5% Commissions generated 1% Cash bonus performance 90% Employer 401(k) contributions 79% Profit sharing 39% Restricted stock awards/phantom share 23% Deferred/multi-year earnings 9% Commission/sales bonus 8% Stock options 4% 5

7 Financial ensation Median Total ensation by Occupation Base Bonus Other Total Bank/Private Client Portfolio Manager 105, , , , th Percentile 131,500 45,000 33, ,500 Buy-side Research Analyst (equity) 117, , , , th Percentile 122,500 90,000 22, ,900 Buy-side Research Analyst (fixed income) 110, , , , th Percentile 144,500 68,500 12, ,750 Buy-side Trader (fixed income) 165, , , , th Percentile 172, ,000 86, ,750 Chief Executive Officer/ Chief Financial Officer 145, , , , th Percentile 213,750 97,500 97, ,675 Chief Investment Officer 249, , , , th Percentile 400, ,000 94, ,000 Consultant 135, , , , th Percentile 185,000 70,000 16, ,000 Financial Advisor/Broker 100, , , , th Percentile 100,000 46,250 36, ,750 Head of Fixed Income 280, , , , th Percentile 330,000 2,000, ,350 2,575,000 Manager of Managers 140, , , , th Percentile 177, ,000 35, ,500 Manager Research (alternatives) 121, , , , th Percentile 182,500 82,000 12, ,750 Manager Research (equity) 113, , , , th Percentile 132,000 36,000 9, ,000 Manager Research (fixed income) 101, , , , th Percentile 142,500 45,000 9, ,550 continued» 6

8 Financial ensation Median Total ensation by Occupation Base Bonus Other Total Portfolio Manager (equities) 140, , , , th Percentile 159, ,000 39, ,000 Portfolio Manager (fixed income) 142, , , , th Percentile 194,500 63,000 84, ,800 Private Client Professional (other) 103, , , , th Percentile 159,575 19,500 25, ,700 Risk Manager 110, , , , th Percentile 115,000 45,000 7, ,500 Sell-side Research Analyst (equity) 125, , , , th Percentile 155, ,000 25, ,000 Sell-side Reseach Analyst (fixed income) 107, , , , th Percentile 117,000 38,250 6, ,500 Strategist 120,000 5 n/a n/a 5, , th Percentile 140,000 n/a 15, ,000 Median total compensation was $176,000 84% of respondents had total compensation of $100,000 or more 7

9 Financial ensation Reported Median ensation for Those With More Than 20 Years of Experience for Selected Occupations Base Bonus Other Total Portfolio manager (equities) 151, , , , Portfolio manager (fixed-income) 164, , , ,100 6 Consultant 188, , , ,500 7 Manager of Managers 170, , , ,000 7 Buy-side research analyst (equity) Buy-side research analyst (fixed-income) Private Client Professional (other) Chief Executive Officer/Chief Financial Officer 225, , , ,000 5 Chief investment officer 169, , , ,108 8 Bank/Private client portfolio manager Risk manager Chart includes most popular job titles; cells in gray represent five or fewer responses. Median total compensation for those with more than 20 years of experience was $290, % of respondents with more than 20 years of experience had total compensation of $100,000 or more 8

10 Financial ensation Reported Median ensation for Those With 10 to Less Than 20 Years of Experience for Selected Occupations Base Bonus Other Total Portfolio Manager (equities) 135, , , ,000 7 Portfolio Manager (fixed-income) 184, , , ,200 5 Consultant 140, , , ,000 9 Manager of Managers Buy-side Research Analyst (equity) 122, , , ,750 6 Buy-side Research Analyst (fixed-income) 154, , , ,750 6 Private Client Professional (other) 103, , , ,700 5 Chief Executive Officer/Chief Financial Officer Chief Investment Officer 275, , ,000 5 Bank/Private Client Portfolio Manager 105, , , ,000 7 Risk Manager 107, , , ,375 6 Median total compensation for those with 10<20 years of experience was $204,592 93% of respondents with 10 to less than 20 years of experience had total compensation of $100,000 or more 9

11 Financial ensation Reported Median ensation for Those With 5 to Less Than 10 Years of Experience for Selected Occupations Base Bonus Other Total Portfolio manager (equities) Portfolio manager (fixed-income) Consultant 110, , , ,500 7 Manager of Managers Buy-side research analyst (equity) Buy-side research analyst (fixed-income) Private Client Professional (other) Chief Executive Officer/Chief Financial Officer Chief investment officer Bank/private client portfolio manager Risk manager Median total compensation for those with 5<10 years of experience was $118,000 10

12 Financial ensation Reported Median ensation for Those With Less Than 5 Years of Experience for Selected Occupations Base Bonus Other Total Portfolio Manager (equities) Portfolio Manager (fixed-income) Consultant Manager of Managers Buy-side Research Analyst (equity) Buy-side Research Analyst (fixed-income) 91, , , , Private Client Professional (other) Chief Executive Officer/Chief Financial Officer Chief Investment Officer Bank/Private Client Portfolio Manager Risk Manager Median total compensation for those with 2<5 years of experience was $104,400 Median total compensation for those with <2 years of experience was $70,063 11

13 Financial ensation ensation by Employer Size Breakdown by Assets & Employee Size Base Bonus Total Under $500 million Under , , , to less than to less than to less than 2,500 2,500 to less than 5,000 5,000 or more $500 million to less than $2 billion Under , , , to less than to less than to less than 2,500 2,500 to less than 5,000 5,000 or more $2 billion to less than $10 billion Under , , , to less than , , , to less than to less than 2,500 2,500 to less than 5,000 5,000 or more $10 billion to less than $50 billion Under , , , to less than , , , to less than , , , to less than 2, , , , ,500 to less than 5, , , , ,000 or more 172, , ,

14 Financial ensation ensation by Employer Size Breakdown by Assets & Employee Size Base Bonus Total $50 billion to less than $100 billion Under , , , to less than to less than to less than 2,500 2,500 to less than 5,000 5,000 or more Over $100 billion Under to less than , , , to less than to less than 2,500 2,500 to less than 5,000 5,000 or more 114, , , ot Applicable Under to less than to less than to less than 2, , , ,500 to less than 5,000 60, , , ,000 or more 112, , ,000 9 Additional detailed analysis of this compensation breakdown is available upon request from CFA Society St. Louis. "ot Applicable" represents the various organizations financial professionals work for that do not manage assets or investments. 13

15 Financial ensation Average Ideal ensation Structure for Selected Occupations Bank/Private Client Portfolio Manager 66% 25% 6% 3% Buy-side Research Analyst (equity) 63% 32% 4% 1% Buy-side Research Analyst (fixed income) 69% 26% 4% 2% Buy-side Trader (fixed income) 55% 36% 7% 3% Chief Executive Officer/Chief Financial Officer 51% 30% 18% 2% Chief Investment Officer 55% 19% 17% 9% Consultant 73% 22% 5% 0% Financial Advisor/Broker 56% 25% 5% 15% Manager of Managers 64% 26% 9% 1% Manager Research (alternatives) 75% 20% 5% 0% Manager Research (equity) 71% 22% 7% 1% Manager Research (fixed income) 63% 30% 6% 1% Portfolio Manager (equities) 60% 32% 8% 1% Portfolio Manager (fixed income) 64% 26% 10% 0% Private Client Professional (other) 76% 20% 2% 2% Risk Manager 78% 17% 3% 2% Sell-side Research Analyst (equity) 56% 38% 6% 0% Sell-side Reseach Analyst (fixed income) 73% 22% 4% 1% Strategist 68% 24% 5% 3% Base % Cash Bonus % Long-term % Other % 14

16 Survey Methodology Survey Methodology Method An online survey was deployed to known financial professionals in the region represented by CFA Society St. Louis. subscribers of CFA Society St. Louis and LinkedIn group members were specifically targeted. The survey was not limited to just these audiences. In addition, this survey was structured so all data gathered was anonymous, with no identifiable information requested. Respondents Respondents are financial and investment professionals, totaling 290 unique and completed responses. Timing The survey was active from April 15, 2015 May 11, Assumptions The findings from this survey were derived from self-reported data. Because the survey uses sampling methodology and broadly defined positions, survey findings are not necessarily representative of the total population; rather, the survey is designed to provide general information about pay levels within the industry. Earning any degree or professional designation is no guarantee of employment or compensation. 15

17 About CFA Society St. Louis About CFA Society St. Louis The CFA Society St. Louis (CFA-STL) promotes ethical and professional standards within the investment industry, encourages professional development through the CFA Program, and facilitates the open exchange of information and opinions. CFA-STL is a professional society comprised of portfolio managers, consultants, security analysts, investment advisors, and other financial professionals. The society promotes ethical and professional standards within the investment industry, and encourages professional development through the CFA Program and continuing education. CFA-STL facilitates the exchange of information and opinions among individuals within the local investment community and beyond, and works to further the public understanding of the CFA designation and investment industry. CFA-STL is a member of CFA Institute, an organization with over 123,000 members from 150 countries. CFA Institute was formerly known as the Association of Investment Management and Research. With 145 member societies, CFA Institute connects members to a global network of investment professionals. CFA Society St. Louis currently has approximately 750 members. Over 80% of our membership holds the Chartered Financial Analyst designation. If you are interested in learning more about earning your charter, or to learn more about CFA Society St. Louis, contact joan_hecker@sbcglobal.net. Follow us at: Generously supported by Hirenomics, LLC Hirenomics is an Executive Recruiting firm specialized in the financial services industry. Our firm represents investment management, private equity, and insurance companies that range from firms with over a trillion in AUM to small boutique firms across the country. What separates our firm from others is our high touch, methodical process to recruiting, along with our unparalleled approach to unearthing passive candidates. As a leader in recruiting, we are proud to say we hold some of the top return-on-investment and long-term retention stats in the industry: a 99% closing ratio and a 94% retention ratio. If you are interested in learning more about Hirenomics, go to 16

2016 FINANCIAL COMPENSATION SURVEY FINDINGS AND RESULTS. November 2016

2016 FINANCIAL COMPENSATION SURVEY FINDINGS AND RESULTS. November 2016 2016 FIACIAL COMPESATIO SURVEY FIDIGS AD RESULTS ovember 2016 LETTER FROM SOCIETY LEADERSHIP Dear Colleagues, As a premier professional organization for investment professionals, CFA Society Indianapolis