So You Are Interest in a

Finance Career...

Careers in Finance
 What is Finance?
 Finance is the study of how to invest and raise money
productively.
 Money and capital markets reviews the banking system
and the markets
 Corporate finance deals with raising money for firms raise
money and what new projects to invest in.
 Investments deals with the working of securities markets
and the valuation of stocks and bonds
 The study of financial institutions considers who the big
banks and insurance companies are and how they
operate and participate in the market.

Careers in Finance
 What is Finance Like?
 It is analytical.
 It is based on economics principles.
 It uses accounting information as an input.
 It is international in perspective.
 It evolves constantly.
 It provides good job opportunities.

Careers in Finance
 What Types of People Do Well in
Finance?
Finance needs people
who are good at
solving problems, who
are comfortable with
numbers and who like
to work with people.
Many finance jobs are
people-oriented.

Careers in Finance
 Job Prospects
 The Job prospects in finance have never been better. According
to employer plans, 1997 is shaping up to be one of the best
years for hiring in history.
 "Brokers were paid an average of $124,000 in 1996"
 Jobs that pay the most: "Financial Planner $144,935, Stock Broker:
$106,493" from Money Magazine's Best Jobs in America, February
1992, p. 67.
 "Jobs that Satisfy: Bank Officer (ranked #2 out of 100)" from Money
Magazine's Best Jobs in America, February 1992, p. 67.

Careers in Finance
 CAREERS IN BANKING
Common entry-level job:
Credit trainee
Common mid-career job:
Commercial Loan Officer
Example: Banc One has hired a
number of students at salaries in the
low 30s.

Careers in Finance
 What You Need to Make it in Banking

 A broad understanding of business

 Good people skills
 Marketing skills and enthusiasm
 A strong understanding of accounting
 Backgrounds in corporate finance and
investment
 Good written communication skills

Careers in Finance
 Representative Salaries in Banking
Boatmen's West One
Position
Bancshares Bancorp
Trainee 25000 25000
Junior loan officer 33000 31000
Portfolio lender 40000 45000
Senior corporate
50000 65000
loan officer

Commercial loan
department 80000 110000
manager

Careers in Finance
 Careers in Investment Banks
Common entry level job:
Stock-broker, trader or security analyst
Common mid-career job:
VP or Managing director.

Example: A number of students have landed jobs

in investment banking over the years at salaries in the
40-50K range (undergraduate) and 70K to 130K range
(MBA).

Careers in Finance
 What You Need to Make it in
Investment Banking
 Good ability to analyze accounting numbers critically.
 Good math skills (nerds taking over Wall Street in 94)
 A good understanding of international and domestic politics
 Some good macroeconomics courses
 Investments classes
 People who are good with cases, especially valuation, will
make great investment bankers. Take a case course in
finance.
 Strong computer and math skills.
 CFA or Series 7 Exam Preparation

Careers in Finance
 Advice on Investment Banking
From Kelly Kamm, William & Mary
"The key to embarking on a career in investment
banking is to begin preparing from day one... A solid
preparation begins with an investigation of the various
specialties within investment banking, such as
analysis and research, equity sales, fixed income
securities, foreign exchange markets and mergers &
acquisitions. The individual interested in investment
banking should educate himself or herself on the
background of major investment banks, keep up on
current issues in the industry and ask questions of
professionals in the field, academics and related
contacts."
Careers in Finance
 Investment Banking Salaries
Job Level Alex Brown Merrill Lynch

Entry level $90,000-110,000 $80,000-$125,000

Vice President $175,000-250,000 $130,000-475,000

Director $400,000-650,000 $250,000-575,000

$400,000-1.5
Managing Director $400,000 +
million
Department head $750,000-1 million $1.5 million +

Careers in Finance Source: Smart Money, August 1992

 Careers in Corporate Finance
 Common entry level job: Treasurer's
Assistant, Junior Financial Analyst.
 Common mid-career job: Assistant to
Chief Financial Officer.
 Example: Pepsico, Ford and many other
firms hired seniors into financial analyst
jobs in 1996.

Careers in Finance
 What You Need to Make It
 Good problem-solving skills.
 Ability to deal with ambiguity and rapidly
changing environment.
 Strong computer skills.
 You need to enjoy business and corporate
environments.
 Many firms want technical and engineering
backgrounds.

Careers in Finance
 Typical Salaries in Corporate Finance

General Motors Pepsico

Junior Financial Analyst $20,000-43,200 $45,000-50,000

Senior Financial
$46,910-82644 $60,000-70,000
Analyst

Divisional comptroller $110,000-172,000 $70,000-80,000

CFO $200,000-350,000 $150,000-200,000

Careers in Finance
 Key to Getting the Job You Want
 The time to start preparing is now. Don't wait until your senior year to get
going.
 Read up on companies you are interested in.
 Read about what is going on in the Wall Street Journal.
 Learn to use the World Wide Web for job searches.
 Start with informational interviews.
 Learn how to interview well by talking to others who interview.
 Do a personal skills inventory and build on your weaknesses.
 Get involved in activities that will count on your resume:
 Good internships (pay should be secondary)
 Think of starting your own business
 Think of computer skills
 Leadership positions on campus

Careers in Finance
 Interviewing Advice
 Present yourself well
 Ask interviewer what they are looking for.
 Sell your skills and yourself
 Avoid arrogance (biggest mistake good students make)
 Ask questions which show your interest
 Try to tell something about yourself which fits the job requirements
 Don't worry about being nervous
 Don't be afraid to say you don't know the answer to a question (show
integrity).
 Follow up with a thank you letter immediately which expresses your
feeling that a good match exists.
 Greet the interviewer with a handshake and a smile.
 Don't be put off by rudeness, multiple interviewer tricks etc.

Careers in Finance
 Recommended Resources
 The Annual Reports of companies you would like to target.
 What Color is Your Parachute? (good to analyze what you want)
 Harvard Business School Career Guide: Finance 1997
 Discusses experiences of students who have gone into investment
banking
 Lists what specific employers look for in the hiring process
 Gives addresses and contact names for leading investment banks and
corporations.
 Book sells out fast.
 Convergence Multimedia: Careers in Finance. CD-ROM tells you what
companies are looking for, salaries and trends. Call (214) 258-6681 to
purchase or get in labs.
 http://www.cob.ohio-state.edu/dept/fin/osujobs.htm has more details on
finance jobs.

Careers in Finance