CFA Institute 2007 Member Compensation Survey

Major Findings: United States

Contents
Introduction, Methodology, and Compensation Calculation.................................................................................................................. 3
Introduction.....................................................................................................................................................................................................................4 Methodology...................................................................................................................................................................................................................5 Compensation Calculation..............................................................................................................................................................................................6

Respondent Profile ...................................................................................................................................................................................... 7 Research Findings ....................................................................................................................................................................................... 10
Reported Compensation in the United States .................................................................................................................................................................11 Reported Change in Compensation from 2005 to 2006..................................................................................................................................................12 Cash Bonuses and Long-Term Incentives ......................................................................................................................................................................13 Reported Compensation by Years of Experience for Selected Occupations ..................................................................................................................16 Components of Compensation by Occupation ...............................................................................................................................................................19 Reported Compensation by Occupation and Organization.............................................................................................................................................21 Reported Compensation by Major Metropolitan Areas..................................................................................................................................................25

Appendices ................................................................................................................................................................................................... 29
Appendix A: Occupation Descriptions...........................................................................................................................................................................30 Appendix B: Metropolitan Area Descriptions ................................................................................................................................................................34

CFA Institute 2007 Member Compensation Survey - United States Report

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Introduction, Methodology, and Compensation Calculation

CFA Institute 2007 Member Compensation Survey - United States Report

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• Individuals who were in the same position at the same company for the whole of 2006. It should also be noted that because the survey includes only data from a sample of CFA Institute members. therefore. 5. However. to lead the 2007 Member Compensation Survey research process. The self-reported data included in this report covers broadly defined positions and. to thoroughly review the survey instrument. CFA Institute commissioned Harris Interactive. This was accomplished by including only: • Individuals who were employed on a full-time basis throughout 2006. Significant enhancements were made to improve the quality of the findings in 2007. methodology. Because of the extensive changes made to the survey instrument in 2007. an independent global market research firm. and the 2007 survey will be a strong benchmark for future comparisons. The data were standardized to the extent possible by not including data that might distort the compensation results. The priority for the 2007 Member Compensation Survey was. provide members with useful directional frames of reference about pay levels. as such. All compensation data points were reviewed to confirm validity for inclusion in the calculation. it is not necessarily representative of the full CFA Institute membership or the total population of individuals in these positions. CFA Institute worked collaboratively with two independent parties to blend their unbiased analysis and subject matter expertise. The total number of questions was limited to reduce respondent fatigue and maintain or improve response rates.Introduction The 2007 Member Compensation Survey is designed to provide CFA Institute members with compensation information to help with career assessment and planning. The questions included in the compensation calculation were reengineered to more accurately capture the appropriate pay elements to calculate total compensation. CFA Institute members continually express the value they derive from the compensation survey. To accomplish this objective. we believe these changes significantly improve the quality of the compensation data reported. The goal of this review was to enhance the rigor of the entire survey process and improve the validity and precision of the compensation data provided to members this year and in years to come. 3. the following changes were made: 1. and reporting practices both internally and with outside experts. 2. Additionally. In summary. AON Corporation contributed to the design of the survey instrument and to the design and interpretation of the data reports.United States Report 4 . CFA Institute 2007 Member Compensation Survey . • Individuals who were not covered under expatriate pay arrangements in 2006. The organizations and occupations tracked in reporting have been more precisely defined to provide greater consistency. 4. it is not possible to make accurate comparisons with past survey data.

Each e-mail contained a link to the survey housed on a secure website managed by Harris Interactive. Care should be taken when interpreting the data based on small sample sizes. A note about reporting The following sample size thresholds were implemented in reporting the data: • The text reports display results for sample sizes of 10 respondents or more. These thresholds were set in order to provide members with the greatest amount of information while still protecting the confidentiality of individual responses. • Low. 1 Sample based on CFA Institute members in the United States with a valid e-mail address as of April 2007. • The online searchable database displays results for sample sizes of 5 respondents or more. CFA Institute 2007 Member Compensation Survey . and 8. followed by two reminder e-mails. to conduct the 2007 Member Compensation Survey. to complete. CFA Institute members in the United States – 46. The sample sizes for some of the reported data are quite small. Members requesting not to receive e-mail or survey communications from CFA Institute were excluded. as the results may not be representative of the total audience.United States Report 5 . an independent global market research firm. The Member Compensation Survey was conducted online from 30 April through 29 May 2007. representing 19 percent of the CFA Institute membership in the United States.395 members in total – were invited via e-mail to participate in the survey1. A total of 9. CFA Institute sent invitations to participate via e-mail.364 members responded to the survey. The survey took seven minutes. on average. Additionally.970 members are included in this report. AON Corporation contributed to the design of the survey instrument and to the design and interpretation of the data reports.Methodology CFA Institute commissioned Harris Interactive.and high-quartile data are displayed for sample sizes of 10 respondents or more.

CFA Institute 2007 Member Compensation Survey .Compensation Calculation Members were allowed to provide their compensation information in their currency of choice. phantom shares. Note: Only those eligible for a cash bonus in 2006 are included in the cash bonus calculation. Note: In order to calculate the most accurate cash bonus and long-term incentive figures for the 2006 performance year.S. and investment partnership payments and excludes pension and other retirement funds. Median total cash compensation was then calculated for the full sample. This includes all cash payments related to the 2006 performance year.oanda. Median total compensation was then calculated for the full sample. which is reflected in the reported 2007 base salary. All compensation data were then converted to U. including commission payments. Total compensation at the 25th percentile and 75th percentile. performance units.United States Report 6 . Total cash compensation was first calculated for each individual respondent by summing 2007 base salary and cash bonus awarded for 2006 performance. The data do include members who may have changed their position and/or company during January through May 2007. the data exclude members who were not in the same position at the same company for the whole of 2006. Due to the small number of respondents who were awarded long-term incentives for the 2006 performance year. Therefore. total compensation is the same as total cash compensation in some cases. dollars. The data presented in this report are in U.com. long-term incentive grants. median total cash compensation will not necessarily equal the sum of the median base salary and median cash bonus. and pension and other retirement funds. Total compensation was first calculated for each individual respondent by summing base salary. cash bonus awarded for 2006 performance. Number of qualified survey respondents included in the reported data. determined by multiplying one’s monthly salary as of 1 March 2007 by 12.S. The exchange rate used was the average of the daily average Interbank Rate for the period 1 January 2006 through 31 December 2006 as reported on www. As applicable. Cash bonus Total cash compensation Total compensation Low quartile / high quartile N * Long-term incentives include the expected cash equivalent value of share options. The compensation categories are defined as follows: Base salary The median of the annual base salary. this includes fixed bonuses and/or other payments that are part of one’s annual salary and excludes yearend cash bonuses. dollars. and excludes prior year deferrals paid out in 2006. Median total cash bonus awarded for 2006 performance. This includes the portion of 2006 cash bonus mandatorily deferred. restricted shares. and other long-term incentives granted for 2006 performance. and long-term incentives awarded for the 2006 performance year*.

Respondent Profile CFA Institute 2007 Member Compensation Survey .United States Report 7 .

law firm Government agency/department Insurance company Hedge fund or fund of hedge funds Corporate plan sponsor Educational institution Family office Rating agency Endowment. Respondent Profile Years of Experience Less than 2 years 2 years to less than 5 years 5 years to less than 10 years 10 years to less than 20 years 20 years or more Advanced Degrees MBA or equivalent Masters’ degree or equivalent PhD or equivalent None of the above Charterholder Status Charterholder Candidate Other/unknown 3% 18 33 31 15 Organization Type Investment management firm Investment bank. U. brokerage firm Consulting. as the group responding is not necessarily representative of the full CFA Institute membership in the United States or the total population of investment professionals in the United States.Respondent Profile Below is a summary of the demographic profile of the 8. foundation Other Assets under Management (executives and buy side only) Under $500 million $500 million to less than $2 billion $2 billion to less than $10 billion $10 billion to less than $50 billion $50 billion to less than $100 billion $100 billion or more 42% 25 6 3 6 4 1 1 1 1 1 7 51% 14 3 37 87% 12 1 13% 15 20 19 8 25 CFA Institute 2007 Member Compensation Survey . It is important to keep in mind the profile of these respondents when reviewing the compensation results.S. commercial bank.970 CFA Institute members included in this report.United States Report 8 . accounting.

Respondent Profile Occupations Chief executive officer Chief administrative officer/chief operating officer Chief financial officer Chief investment officer Head of equities Head of fixed income Portfolio manager (equities) Portfolio manager (fixed income) Portfolio manager (quantitative) Portfolio manager (indexed/other) Buy-side research analyst (equity) Buy-side research analyst (fixed income) Buy-side research analyst (quantitative) Buy-side research analyst (other) Buy-side trader (equity) Buy-side trader (fixed income) Buy-side trader (other) Institutional sales representative/relationship manager Wholesale/intermediary sales representative Marketing manager Strategist Manager of managers % 2 1 1 4 1 1 4 5 1 9 8 5 1 <1 1 1 <1 1 <1 <1 1 2 N 209 93 90 338 69 92 392 423 126 840 709 441 114 44 63 98 19 131 21 27 86 213 Occupations Financial advisor/broker Private banker Investment banker Sell-side research analyst (equity) Sell-side research analyst (fixed income) Sell-side trader (equity) Sell-side trader (fixed income) Sell-side sales (equity) Sell-side sales (fixed income) Performance analyst Risk manager Private client professional (other) Accountant/auditor Actuary Consultant Credit analyst (rating) Professor/lecturer Regulator % 2 1 2 4 1 <1 1 1 1 1 2 1 2 1 5 1 1 1 N 143 68 148 331 65 33 55 56 78 96 166 158 177 107 488 95 99 79 CFA Institute 2007 Member Compensation Survey .Respondent Profile U.United States Report 9 .S.

Research Findings CFA Institute 2007 Member Compensation Survey .United States Report 10 .

30 percent said their compensation increased by 20 percent or more. Twenty percent of respondents saw no change in compensation between the two years. years of experience. select metropolitan areas. and investment partnership payments. and 22 percent said bonus is driven by business unit/division performance. currency. CFA Institute 2007 Member Compensation Survey . or other individual factors. performance units. Three in ten (30 percent) of those who were awarded long-term incentives received stock options. size of organization. and 24 percent said the increase was between 10 and 20 percent.org/memresources/private/surveys/index.Reported Compensation in the United States This report includes selected results from the 2007 CFA Institute Member Compensation Survey. Twenty-seven percent said overall firm performance is most important.United States Report 11 . When looking at any aggregate totals. and 7 percent said their total compensation decreased. While most respondents were eligible for a cash bonus in 2006. CFA Institute members can access the full dataset through an online searchable database located on the CFA Institute website: http://www. and 41 percent received other incentives such as mandatory deferred cash. type of organization. What is the largest determinant of cash bonus? Forty-six percent of respondents said their bonus is primarily tied to their individual performance – investment performance. phantom shares. results are only shown for sample sizes of 10 respondents or more. In this report. In many countries.html. and occupation where sample sizes permit. less than half (42 percent) were awarded long-term incentives. and country. including position. Restricted shares are the most common form of long-term incentive. limited sample sizes do not allow us to present a full cross-tabulation of all variables. organization type. with half of those who where awarded long-term incentives saying they received restricted shares. financial contribution. results are only provided for sample sizes of five respondents or more. To protect respondent confidentiality. Almost all respondents (90 percent) were eligible for a cash bonus in 2006. The online searchable database contains all of the compensation results organized by country. one should remember that several factors contribute to differences in compensation. Most respondents (72 percent) report that their total compensation increased from 2005 to 2006.cfainstitute.

CFA Institute 2007 Member Compensation Survey . total cash bonus.United States Report 12 . Increased 20%+ 30% 24% 18% 20% 7% 1% Total Increase Increased 10% to 20% 72% Increased 5% to 10% No Change Decreased Not Sure Q: How much did your total compensation increase or decrease from 2005 to 2006? Total compensation includes annual base salary rate.Reported Change in Compensation from 2005 to 2006 Reported Change in Total Compensation from 2005 to 2006 U.S. and long-term incentives.

None of these.Cash Bonuses and Long-Term Incentives Cash Bonuses and Long-Term Incentives U. performance units. Other long-term incentives.United States Report 13 . Eligible for a Cash Bonus in 2006 No 10% Long-Term Incentives Awarded in 2006 Yes 42% No 58% Yes 90% Share options Q: Were you eligible for a cash bonus in 2006? Q: Which of the following long-term incentives were you awarded for the 2006 performance year? (Select all that apply): Share options. 30% 50% 41% Restricted shares Other CFA Institute 2007 Member Compensation Survey .S. Restricted shares. phantom shares. including mandatory deferred cash. and investment partnership payments.

compared with the 42 percent average. More than half of portfolio managers.United States Report 14 . The executives in the sample were slightly less likely to say they were eligible for a bonus (75 to 87 percent versus the 90 percent average). Long-term incentives appear to be more common in some occupations than others. respondents Eligible for a Bonus in 2006 Awarded Long-Term Incentives for 2006 U. strategists.Cash Bonuses and Long-Term Incentives Cash bonuses are very common in almost all occupation types.S. sellside sales representatives. sell-side traders. respondents Eligible for a Bonus in 2006 Awarded Long-Term Incentives for 2006 Chief executive officer Chief administrative officer / chief operating officer Chief financial officer Chief investment officer Head of equities Head of fixed income Portfolio manager (equities) Portfolio manager (fixed income) Portfolio manager (quantitative) Buy-side research analyst (equity) Buy-side research analyst (fixed income) Buy-side research analyst (quantitative) Buy-side trader Buy-side sales/marketing Strategist Manager of managers Risk manager Performance analyst 75% 82 87 80 87 92 94 96 98 95 98 94 96 98 99 89 93 89 30% 47 50 41 36 48 54 58 64 35 42 43 39 51 52 38 45 30 Financial advisor/broker Private banker Investment banker Sell-side research analyst (equity) Sell-side research analyst (fixed income) Sell-side trader (equity) Sell-side trader (fixed income) Sell-side sales (equity) Sell-side sales (fixed income) Accountant/auditor Actuary Consultant Credit analyst (rating) Professor/lecturer Regulator 59% 84 99 98 92 94 91 93 90 90 95 90 96 11 53 42% 50 41 36 43 52 53 57 50 36 36 25 37 1 3 CFA Institute 2007 Member Compensation Survey . and private bankers were awarded long-term incentives for the 2006 performance year.S. Almost no regulators (3 percent) or professors/lecturers (1 percent) were awarded long-term incentives. as were regulators (53 percent) and professors/lecturers (11 percent). U.

Cash Bonuses and Long-Term Incentives Most Important Determinant of Cash Bonus U. new business generation.United States Report 15 . 5% Other / Not Sure 15% Individual Investment Performance Overall Firm Performance 27% 13% Individual Financial Contribution (e. revenues directly managed) 18% Business Unit/Division Performance Other Factors Related to Individual Performance 22% Q: Which of the following is the SINGLE MOST IMPORTANT consideration in the determination of your cash bonus? CFA Institute 2007 Member Compensation Survey .g.S..

000). while those with ten or more years of experience are at the higher end of the scale. who in turn earn more than those with less than five years of experience.000. the median cash bonus for portfolio managers (indexed/other) and financial advisors/brokers is considerably lower than that for the other occupations included in this report. with portfolio managers (equities) ($200. At all levels of experience. CFA Institute 2007 Member Compensation Survey . with median total compensation similar to that for sell-side research analysts. median cash bonus varies more by occupation. • At less than five years of experience. • At five to ten years of experience. Buy-side research analysts (equity and fixed income) fall in the middle of the pack at all levels of experience. Only portfolio managers (equities) and investment bankers report a median cash bonus above $200. The pattern for median cash bonus is more variable by years of experience. A similar pattern is observed for median cash bonus among those eligible for a cash bonus in 2006. the portfolio managers (indexed/other) and financial advisors/brokers in the sample report the lowest median total compensation.United States Report 16 . At all levels of experience.000) and investment bankers ($185. with the exception of investment bankers.000) reporting cash bonuses that are more than double that for most other occupations. Portfolio managers (fixed income) with less than ten years of years fall at lower end of the median total compensation scale. as all occupations other than portfolio managers (indexed/other) and financial advisors/brokers report a median cash bonus greater than $100.000. respondents with ten or more years of experience earn more than those with five to ten years of experience. • The gap narrows somewhat at ten or more years of experience. Also at all levels of experience. portfolio managers (equities) in the sample report a considerably higher median total compensation than the other occupations included in this report. For all of the occupations included in this report. there is little variability in median cash bonus among the other occupations. Portfolio managers (equities) are followed by investment bankers and then sell-side research analysts.Reported Compensation by Years of Experience for Selected Occupations Median total compensation is correlated with years of experience. who have a much higher median cash bonus ($93.

000 87.000 186.000 350.000 375.000 Research Caveat: The compensation data reported here are based on responding CFA Institute members and are not necessarily representative of the full CFA Institute membership or the population of investment professionals as a whole.000 302.000 150.000 126.S.000 158.000 113.000 $499.000 $398.000 177.United States Report 17 .000 180.000 149.000 323.000 195.Reported Compensation by Years of Experience for Selected Occupations U.000 200.000 213.000 111.S.000 250.000 210.000 190.000 233. Reported Median Total Compensation by Years of Experience for Selected Occupations (in U. dollars) Less than 5 to Less than 5 Years 10 Years 10+ Years Total Experience Experience Experience Portfolio manager (equities) Portfolio manager (fixed income) Portfolio manager (indexed/other) Buy-side research analyst (equity) Buy-side research analyst (fixed income) Financial advisor/broker Investment banker Sell-side research analyst (equity) Manager of managers $456.000 175.000 153.000 250.000 325.000 130.000 200. CFA Institute 2007 Member Compensation Survey .000 206.000 214.000 135.000 $205.000 350.000 275.

000 185.000 10+ Years Experience $220.000 40.000 105.000 $200.Reported Compensation by Years of Experience for Selected Occupations U.000 46.000 * Only those respondents who were eligible for a cash bonus in 2006 are included in this calculation.000 166.000 100.000 180.000 53.000 40.000 56.000 85. dollars) Less than 5 to Less than 5 Years 10 Years Total Experience Experience Portfolio manager (equities) Portfolio manager (fixed income) Portfolio manager (indexed/other) Buy-side research analyst (equity) Buy-side research analyst (fixed income) Financial advisor/broker Investment banker Sell-side research analyst (equity) Manager of managers $200.000 75. CFA Institute 2007 Member Compensation Survey .000 40.S.000 23.000 30. Research Caveat: The compensation data reported here are based on responding CFA Institute members and are not necessarily representative of the full CFA Institute membership or the population of investment professionals as a whole.000 65.000 $50.000 125.000 225.000 34.000 78.000 70.United States Report 18 .000 26.000 80.000 27.S.000 93.000 17.000 135.000 150.000 58. Reported Median Cash Bonus by Years of Experience for Selected Occupations* (in U.000 30.000 80.000 40.

Components of Compensation by Occupation The proportion of compensation accounted for by bonus varies widely by occupation. long-term incentives generally account for less than 10 percent of total compensation. traders. Components of Compensation by Occupation N Executives/top management Chief executive officer Chief administrative Officer/chief operating officer Chief financial officer Chief investment officer Buy-side professionals Head of equities Head of fixed income Portfolio manager (equities) Portfolio manager (fixed income) Portfolio manager (quantitative) Portfolio manager (indexed/other) Buy-side research analyst (equity) Buy-side research analyst (fixed income) Buy-side research analyst (quantitative) Buy-side research analyst (other) Buy-side trader (equity) Buy-side trader (fixed income) Buy-side trader (other) Institutional sales representative/relationship manager Wholesale/intermediary sales representative Marketing manager Strategist Manager of managers 209 93 90 338 Base Salary 59% 56 70 67 Cash Bonus 31% 39 23 25 Long-Term Incentives 10% 5 7 8 6 8 12 6 11 4 5 4 3 2 9 3 0 11 2 0 6 7 74 20 69 61 31 92 39 49 392 56 38 423 40 49 126 73 23 840 59 36 709 56 40 441 62 35 114 73 25 44 47 44 63 61 36 98 44 56 19 43 46 131 38 60 21 56 44 27 61 33 86 68 25 213 Note: This is a derived calculation based on median base salary.United States Report 19 . Bonus accounts for less than 20 percent of total compensation for occupations outside of investment management. U. For all occupations. Bonus generally accounts for more than 25 percent of total compensation for executives and buy-side professionals and more than half of total compensation for sell-side research analysts. CFA Institute 2007 Member Compensation Survey .S. and median total compensation. and sales positions. median total cash compensation.

Components of Compensation by Occupation N Sell-side professionals Financial advisor/broker Private banker Investment banker Sell-side research analyst (equity) Sell-side research analyst (fixed income) Sell-side trader (equity) Sell-side trader (fixed income) Sell-side sales (equity) Sell-side sales (fixed income) Other professionals Performance analyst Risk manager Private client professional (other) Accountant/auditor Actuary Consultant Credit analyst (rating) Professor/lecturer Regulator 143 68 148 331 65 33 55 56 78 96 166 158 177 107 488 95 99 79 Base Salary 69% 68 39 51 45 39 44 40 43 84 65 81 84 78 81 71 100 95 Cash Bonus 22% 29 58 46 52 61 50 55 54 13 28 19 13 16 16 22 0 5 Long-Term Incentives 9% 3 3 3 3 0 6 5 3 3 7 0 3 6 3 7 0 0 Note: This is a derived calculation based on median base salary.S.United States Report 20 . median total cash compensation.Components of Compensation by Occupation U. CFA Institute 2007 Member Compensation Survey . and median total compensation.

median total compensation is correlated with years of experience within organizations. For all of the occupations included in this section of the report.000 for those with five to ten years of experience. varies considerably.000 for those with more than ten years of experience. respondents with ten or more years of experience at a given organization earn more than those with five to ten years of experience. for whom median total compensation at ten or more years of experience is comparable across the two types of organizations. The one exception is portfolio managers (indexed/other). For buy-side research analysts (equities). and $285. CFA Institute 2007 Member Compensation Survey . who in turn earn more than those with less than five years of experience. versus $210. • For example. commercial banks. respondents in all occupations included in this report earn more at investment management firms than investment banks. and a much higher $350.000 for those with more than ten years of experience. Median total compensation by occupation also varies by type of organization at which the respondent is employed. median total compensation is $150.000 for those with five to ten years of experience. and brokerage firms.United States Report 21 . at investment management firms.Reported Compensation by Occupation and Organization As with occupations in general. though. versus $220.000 for those with less than five years of experience. The size of the gap in median total compensation by years of experience. At ten or more years of experience. median total compensation for buy-side research analysts (fixed income) is $128.000 for those with less than five years of experience.

Reported Compensation by Occupation and Organization U.000 160.000 150.000 410.000 225.S.000 104.000 266.000 210.000 124.000 137.000 $238.000 350.000 175.000 82.000 128.000 197.000 280.000 228.000 225.000 220.000 363.United States Report 22 . Reported Median Total Compensation by Type of Occupation and Years of Experience: Investment Management Firms (in U.000 555.000 526. dollars) Less than 5 to Less than 5 Years 10 Years 10+ Years Total Experience Experience Experience Portfolio manager (equities) Portfolio manager (fixed income) Portfolio manager (quantitative) Portfolio manager (indexed/other) Buy-side research analyst (equity) Buy-side research analyst (fixed income) Buy-side trader (equity) Buy-side trader (fixed income) Manager of managers Note: Shaded areas indicate N sizes too small to report.S.000 182.000 235.000 440.000 170.000 200.000 91.000 161.000 CFA Institute 2007 Member Compensation Survey .000 135. Research Caveat: The compensation data reported here are based on responding CFA Institute members and are not necessarily representative of the full CFA Institute membership or the population of investment professionals as a whole.000 225.000 253.000 285. 495.000 402.000 237.

000 165.000 $82. Reported Median Total Compensation by Type of Occupation and Years of Experience: Investment Banks.000 140. dollars) Less than 5 to Less than 5 Years 10 Years 10+ Years Total Experience Experience Experience Portfolio manager (equities) Portfolio manager (fixed income) Portfolio manager (indexed/other) Buy-side research analyst (equity) Buy-side research analyst (fixed income) Manager of managers Note: Shaded areas indicate N sizes too small to report.000 137.S.000 181.United States Report 23 . and Brokerage Firms (in U.000 275.000 CFA Institute 2007 Member Compensation Survey . Research Caveat: The compensation data reported here are based on responding CFA Institute members and are not necessarily representative of the full CFA Institute membership or the population of investment professionals as a whole.000 269.000 172.000 183.000 $175.S.000 170. Commercial Banks.000 200.000 139.000 137.000 229. 294.Reported Compensation by Occupation and Organization U.000 198.

dollars) Less than 5 to Less than 5 Years 10 Years 10+ Years Total Experience Experience Experience Buy-side research analyst (equity) Buy-side research analyst (fixed income) Manager of managers Note: Shaded areas indicate N sizes too small to report.S.000 305.000 319.United States Report 24 .000 360.Reported Compensation by Occupation and Organization U. 300.000 388.000 CFA Institute 2007 Member Compensation Survey .000 185.S. Reported Median Total Compensation by Type of Occupation and Years of Experience: Hedge Funds and Hedge Funds of Funds (in U.000 $253.000 518. Research Caveat: The compensation data reported here are based on responding CFA Institute members and are not necessarily representative of the full CFA Institute membership or the population of investment professionals as a whole.000 170.

000 168.000 at five to ten years of experience. and to $249. DC Atlanta Minneapolis/St.S. metropolitan areas with 100 or more respondents.000 440.S.000 205.000 248. Research Caveat: The compensation data reported here are based on responding CFA Institute members and are not necessarily representative of the full CFA Institute membership or the population of investment professionals as a whole.000 279.000 $248.000 293.000 10+ Years Experience $511.000 108.000 Note: Shaded areas indicate N sizes too small to report.000 274.000 193.000 210.000 143.000 Total New York City Boston Chicago San Francisco Los Angeles Philadelphia Washington.000 204.000 260.000 205. dollars) Less than 5 to Less than 5 Years 10 Years Experience Experience $170.000 174. the gap in median total compensation by metropolitan area increases with years of experience.000 181. At less than five years of experience.000 288.000 185. respondents with ten or more years of experience in a given geography earn more than those with five to ten years of experience.000 206.000 240. CFA Institute 2007 Member Compensation Survey .000 435.United States Report 25 . Paul Dallas/Fort Worth $335. Reported Median Total Compensation by U.S.000 at ten or more years of experience.Reported Compensation by Major Metropolitan Areas Median total compensation is correlated with years of experience within metropolitan areas. The gap jumps to $105. Among portfolio managers in the sample.000 255. $85.000 121. Note: The 10 metropolitan areas with the greatest number of respondents are included in this report.000 224.000 262. For all of the metro areas included in this section of report. The online searchable database includes compensation data for 19 U.000 174.000 240.000 188.000 separate the lowest and highest median total compensation by metro area.000 383. who in turn earn more than those with less than five years of experience. Metropolitan Areas by Years of Experience: Portfolio Managers (in U.000 229.

000 Note: Shaded areas indicate N sizes too small to report.000 122.000 220.000 210.000 $310.S.000 307.000 120.000 207.000 285.000 232. metropolitan areas with 100 or more respondents. Paul Dallas/Fort Worth Total $310.000 133.000 220.000 10+ Years Experience $412.S. DC Atlanta Minneapolis/St. CFA Institute 2007 Member Compensation Survey . dollars) Less than 5 to Less than 5 Years 10 Years Experience Experience $205.000 126. Metropolitan Areas by Years of Experience: Buy-Side Research Analysts (in U.Reported Compensation by Major Metropolitan Areas Reported Median Total Compensation by U.000 185.000 New York City Boston Chicago San Francisco Los Angeles Philadelphia Washington.000 348.000 176.000 228.000 205.000 167.000 300.000 412. The online searchable database includes compensation data for 19 U.000 161.S.000 273.000 280.000 199.000 170.000 160. Research Caveat: The compensation data reported here are based on responding CFA Institute members and are not necessarily representative of the full CFA Institute membership or the population of investment professionals as a whole. Note: The 10 metropolitan areas with the greatest number of respondents are included in this report.000 203.000 117.United States Report 26 .

metropolitan areas with 100 or more respondents. The online searchable database includes compensation data for 19 U. CFA Institute 2007 Member Compensation Survey .000 $280.000 240.000 165.000 10+ Years Experience $400.000 275.000 177.S.S.Reported Compensation by Major Metropolitan Areas Reported Median Total Compensation by U.000 Note: Shaded areas indicate N sizes too small to report. Research Caveat: The compensation data reported here are based on responding CFA Institute members and are not necessarily representative of the full CFA Institute membership or the population of investment professionals as a whole. dollars) Less than 5 to Less than 5 Years 10 Years Experience Experience $185.000 New York City Boston Chicago San Francisco Los Angeles Philadelphia Washington. Note: The 10 metropolitan areas with the greatest number of respondents are included in this report. DC Atlanta Minneapolis/St.000 153.United States Report 27 .S.000 164. Paul Dallas/Fort Worth Total $240.000 140. Metropolitan Areas by Years of Experience: Sell-Side Research Analysts (in U.

Metropolitan Areas by Years of Experience: Consultants (in U.United States Report 28 . Paul Dallas/Fort Worth Total $139.000 98.S.000 140. dollars) Less than 5 to Less than 5 Years 10 Years Experience Experience $129.000 148.000 140.000 10+ Years Experience $300.000 125.000 185.000 178.Reported Compensation by Major Metropolitan Areas Reported Median Total Compensation by U.000 106.000 $126. The online searchable database includes compensation data for 19 U.000 New York City Boston Chicago San Francisco Los Angeles Philadelphia Washington.000 179.000 145.000 135.000 144.000 Note: Shaded areas indicate N sizes too small to report.000 109.S. Research Caveat: The compensation data reported here are based on responding CFA Institute members and are not necessarily representative of the full CFA Institute membership or the population of investment professionals as a whole. Note: The 10 metropolitan areas with the greatest number of respondents are included in this report. CFA Institute 2007 Member Compensation Survey . metropolitan areas with 100 or more respondents.000 140.S.000 165. DC Atlanta Minneapolis/St.000 181.000 203.000 137.

Appendices CFA Institute 2007 Member Compensation Survey .United States Report 29 .

. research. Chief administrative officer/chief operating officer – Executive responsible for the organization’s administrative and operations functions. Includes those who wrote in “performance analyst” at the “other-please specify” prompt. and/or pension consultants. including accounting. and tracks third-party investment managers. etc. Oversees and directs all portfolio management.g. Manager of managers – Professional who evaluates. etc. budgeting. trading.. Chief financial officer – Executive responsible for managing the organization’s financial affairs. clients. CFA Institute 2007 Member Compensation Survey .United States Report 30 . treasury. Head of fixed income – Executive having overall responsibility for the organization’s fixed-income investment activities. Typically reports to the CEO. portfolio management. Performance analyst – Professional responsible for compiling and analyzing investment performance data. market risk. trading. tax.). portfolio management. Oversees daily operations and typically reports to the CEO. Only selected occupations are included in this report.g. Results of analyses may be shared with management. credit risk.Appendix A: Occupation Descriptions Below is a full description of the occupations included in the 2007 Member Compensation Survey. Strategist – Helps define the organization’s overall investment strategy and/or asset allocation policies. All occupations with enough respondents to report are included in the online searchable database.. Chief executive officer – The highest-ranking officer in an organization. research. Includes those who wrote in “risk manager” at the “other-please specify” prompt. operational risk) and on developing strategies to mitigate potential losses. Typically leads all equity-related functions/staff (e.g. and related investment functions. Typically has extensive portfolio management experience but is not currently managing money. Typically leads all fixed-incomerelated functions/staff (e. The position having ultimate responsibility for the organization’s financial and strategic success. research.). trading. Head of equities – Executive having overall responsibility for the organization’s equity investment activities. etc. Chief investment officer – Executive responsible for the organization’s investment results. Typically reports to the CEO. Risk manager – Professional who focuses on monitoring and assessing the firm’s risk exposures (e. selects.

Appendix A: Occupation Descriptions Portfolio manager includes: Portfolio manager: equities (fundamental) – Portfolios/funds that consist largely of common shares issued by organizations. quality of management.g. Buy-side research analyst: quantitative – Buy-side analyst whose investment recommendations are primarily based on advanced mathematical/statistical models. Investment approach focuses on credit analysis and/or analysis of classes of securities. etc. Portfolio manager: quantitative – Investment approach that seeks to maximize portfolio performance by using strategies that rely on mathematical models.United States Report 31 . MSCI.. Portfolio manager: indexed – Portfolios that are designed to replicate the performance of a specific index (e. Investment approach focuses on analysis of individual securities’ financial performance. rebalancing. and model refinement. Buy-side research analyst: fixed income – Buy-side analyst whose investment recommendations are primarily based on fundamental and/or credit analysis of fixed-income securities. monitoring. Portfolio manager: fixed income (fundamental) – Portfolios/funds that consist largely of fixed-income securities issued by organizations. Buy-side research analyst: other – All other buy-side research analysts CFA Institute 2007 Member Compensation Survey . Responsibilities include portfolio construction. Private client portfolio manager – Primarily responsible for managing individual and/or trust account assets and investment relationships Portfolio manager: other – All other portfolio managers Buy-side research analyst includes: Buy-side research analyst: equity – Buy-side analyst whose investment recommendations are primarily based on fundamental analysis of equity securities. competitive advantage. S&P 500). market trends. etc.

Sell-side fixed-income trader – Trades fixed-income securities as an agent or principal. Wholesaler/intermediary sales rep – Buy-side sales professional who is primarily responsible for selling investment products through intermediaries (e.United States Report 32 . CFA Institute 2007 Member Compensation Survey . Analyses are distributed to brokerage and/or banking clients.g. banks. Sell-side fixed-income research analyst – Evaluates the creditworthiness of debt issuers and the value of their outstanding debt. and foundations. broker dealers. Buy-side trader: fixed income – Buy-side trader who is primarily responsible for buying and/or selling fixed-income securities for the firm’s portfolio managers. Buy-side sales/marketing: other – all other buy-side sales/marketing positions Sell-side research analyst includes: Sell-side equity research analyst – Evaluates the earnings potential and prospective market value of publicly traded companies. Analyses are distributed to brokerage and/or banking clients. market research. such as pension funds. Buy-side trader: other – All other buy-side traders Buy-side sales/marketing includes: Institutional sales rep/relationship manager – Buy-side sales professional who is primarily responsible for marketing asset management services to institutional investors. Marketing manager – Professionals responsible for supporting the promotion and distribution of investment products. unions. financial planners)..Appendix A: Occupation Descriptions Buy-side trader includes: Buy-side trader: equity – Buy-side trader who is primarily responsible for buying and/or selling equity securities for the firm’s portfolio managers. Sell-side trader includes: Sell-side equity trader – Trades equity securities as an agent or principal. endowments. creative services. etc. governments. Responsibilities could include product management.

. television. financial management. magazine. private banker..g. etc. CFA Institute 2007 Member Compensation Survey .United States Report 33 . Fixed income sales – Provides fixed-income brokerage and investment research services to institutional clients (e. such as business strategy. deposit. or private client portfolio manager. issue debt. and quantifying the financial impact of various risks and uncertainties. and/or complete mergers and acquisitions. credit) to individual investors. governments. Investment banker – Helps corporations.g. and/or tax advice to corporations.. Accountant/auditor – Provides accounting.. private placements. Professor/lecturer – Conducts lectures and seminars and performs research in a specific field of study. Private client professional: other – All private client professionals who did not classify themselves as a financial advisor/broker. asset managers. and/or enforces industry regulations on behalf of an industry association or government body/agency. internet). process control. individuals. Journalist – Gathers and distributes information through the media (e. newspaper. reforms. Actuary – Focuses on modeling.Appendix A: Occupation Descriptions Sell-side sales includes: Equity sales – Provides equity brokerage and investment research services to institutional clients (e. understanding.g. monitors. Typically employed by a rating agency. Credit analyst (rating) – Monitors debt issuer’s creditworthiness and assigns ratings to specific financial instruments. trust. governments. Financial advisor/broker – Primarily provides retail brokerage and financial advice to individual investors. Consultant – Provides expert advice in a specific area. asset managers. restructurings. etc. Private banker – Primarily provides investment management and related investment services (e. hedge funds). and other institutions raise equity. Regulator – Establishes. hedge funds).g. marketing. information technology. such as Moody’s Investor Service or Standard & Poor’s.

DC Atlanta Minneapolis/St. Paul-Bloomington. GA Minneapolis-St. IL-IN-WI San Francisco-Oakland-Freemont. Metropolitan Area Descriptions New York City Boston Chicago San Francisco Los Angeles Philadelphia Washington. MA-NH Chicago-Naperville-Joliet. DC-VA-MD-WV Atlanta-Sandy Springs-Marietta. PA-NJ-DE-MD Washington-Arlington-Alexandria. CA Los Angeles-Long Beach-Santa Ana. Paul Dallas/Fort Worth New York-Northern New Jersey-Long Island. TX CFA Institute 2007 Member Compensation Survey .Appendix B: Metropolitan Area Descriptions The full descriptions of the metropolitan areas included in this report are as follows: Full U.S. MN-WI Dallas-Fort Worth-Arlington.United States Report 34 . NY-NJ-PA Boston-Cambridge-Quincy. CA Philadelphia-Camden-Wilmington.

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