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2016 FINANCIAL COMPENSATION SURVEY
FINDINGS AND RESULTS
November 2016
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2016 FINANCIAL COMPENSATION REPORT
LETTER FROM SOCIETY LEADERSHIP
Dear Colleagues,
As premier professional organizations for investment professionals, the CFA Societies of Florida are dedicated to being reliable and trustworthy sources of information. Each Society strives to serve members by providing them the resources to aid in their career development and advancement.
We are excited to announce the highly anticipated findings of the 2016 Financial Compensation Survey. The survey, which had been void in the market since 2007, provides a region-specific analysis of compensation levels for investment and financial professionals. This whitepaper captures the findings of the survey, providing an overview of the survey-wide results.
For those who participated in the survey, we thank you for your contribution to this important market resource. We are confident the information contained in this document will be of value to you.
Regards,
Chris Squittieri, CFA President, CFA Society Naples
Matt Hansen, CFAPresident, CFA Society Orlando
Ursula Auger, CFAPresident, CFA Society South Florida
Benjamin Padilla, CFAPresident, CFA Society Tampa Bay
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2016 FINANCIAL COMPENSATION REPORT
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.
The 2016 CFA Societies Financial Compensation Survey seeks to provide access to this vital information. This report is a compilation of the results from a survey on compensation practices in Naples, Orlando, South Florida and Tampa Bay conducted earlier this year; 255 professionals completed the survey.
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.
The survey requested self-reported data on numerous aspects of compensation. In addition to covering base salary and total compensation, the survey addressed the respondent’s CFA Charterholder status, level of education, and occupation. Information on the type and size of the firm as well as the amount of assets under management were included in the survey. The survey captured annual salary change data and the respondent’s view on the adequacy of compensation and the desire to explore other job opportunities.
The 2016 Financial Compensation Survey data and exhibits are intended to provide general guidance for comparing compensation levels with overall values for key categories. Note that actual compensation potential may vary relative to the numbers generated by the survey given the use of relatively broad category definitions. Also, the estimation of compensation based on any single factor may not predict reasonably accurate estimates. Details surrounding actual job responsibilities and the confluence of multiple factors may result in higher or lower compensation levels.
Median total compensation
Non-Charterholder CFA Charterholder
Our data show that professionals who attain the CFA designation and/or a graduate degree tend to have higher compensation levels.
$82,900$161,000
$129,000$192,650
Bachelor degree
Graduate degree
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2016 FINANCIAL COMPENSATION REPORT
RESPONDENT PROFILES
Years of experience< 2 years
2 – 5 years
5 –10 years
10 – 20 years
7.0%11.0%29.0%28.0%
20 + years 26.0%
EducationSome college but no degree
Associate degree
Bachelor degree
0.8%0.4%
50.2%Graduate degree
Doctorate45.9%
2.7%
96.5%of those surveyed report that
CFA® Charter designation has helped career
Charterholder status
67.0%Yes
13.0% No
21.0% Candidate
Feel valued by their company
73.9%Yes 3.7%
N/A
22.4% No
Feel fairly compensated
69.2%Yes
30.8% No
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2016 FINANCIAL COMPENSATION REPORT
RESPONDENT PROFILES
Opportunity for advancement within company
51.4%Yes
6.1% N/A
25.3% No
17.1% Not sure
Likelihood of looking for a new role in 2016
40.0%Unlikely
20.4% Likely
22.9% Very unlikely
16.7% Very likely
Employer size< 50
50 to < 250
250 to < 500
500 to < 2,500
34.0%17.0%4.0%8.0%
2,500 to < 5,000 4.0%≥ 5,000 35.0%
AUM of firm< $500 million
$500 million to < $2 billion
$2 billion to < $10 billion
$10 billion to < $50 billion
18.0%9.0%
13.0%12.0%
$50 billion to < $100 billion 3.0%≥ $100 billion 26.0%
Not applicable 19.0%
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2016 FINANCIAL COMPENSATION REPORT
RESPONDENT PROFILES
Fifteen most common occupations12.9%12.5%9.0%7.8%4.7%3.9%3.1%3.1%3.1%3.1%2.7%2.7%2.4%2.0%2.0%
FinancialAdvisor/Broker
Bank/Trust/Private Client Portfolio Manager
Financial Analyst (corporate)
Portfolio Manager (equities)
Chief Investment Officer
Private Client Professional (other)
Accountant/Auditor
Manager Research (equity)
Performance Analyst
Portfolio Manager (indexed/other)
Buy-side Research Analyst (equity)
Consultant
Portfolio Manager (fixed income)
Chief Executive Officer
Institutional Sales Representative/Relationship Manager
Organization type38.0%26.0%19.0%8.0%3.0%2.0%2.0%1.0%1.0%0.0%
Investment Management Firm
Investment Bank, Commercial Bank, Brokerage Firm
Other
Consulting, Accounting, Law Firm
Family Office
Educational Institution
Insurance Company
Hedge Fund or Fund of Hedge Funds
Corporate Plan Sponsor
Government Agency/Department
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2016 FINANCIAL COMPENSATION REPORT
FINANCIAL COMPENSATION
Types of compensation in addition to base salary
82.0%76.0%21.0%17.0%14.0%6.0%
Cash/Bonus Performance
Employer 401(k) Contributions
Profit Sharing
Restricted Stock Awards/Phantom Shares
Commission/A Sales Bonus
Deferred/Multi-year Earnings
Stock Options 4.0%
Average ideal compensation structure for selected occupations
72.3% / 21.7% / 5.5% / 0.5%
55.8% / 29.8% / 4.6% / 9.8%
80.8% / 13.0% / 5.0% / 1.2%
72.9% / 20.8% / 6.1% / 0.3%
61.7% / 23.3% / 7.5% / 7.5%65.0% / 27.5% / 6.0% / 1.5%
68.6% / 21.4% / 9.4% / 0.6%
86.1% / 10.8% / 3.0% / 0.1%
73.1% / 20.0% / 6.3% / 0.6%
77.1% / 17.9% / 1.4% / 3.6%
Occupation
Bank/Trust/Private Client Portfolio Manager
Financial Advisor/Broker
Financial Analyst (corporate)
Portfolio Manager (equities)
Chief Investment Officer
Private Client Professional (other)
Manager Research (equity)
Performance Analyst
Portfolio Manager (indexed/other)
Consultant
Expected change in total compensation
Decline 2.0% Stay the same 22.0% Increase 10–20% 21.0% Increase > 20% 8.0%
46%Increase 0–10%
Base Cash bonus Long term Other
Discretionary and business unit/division performance were the top two determinants of bonus
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2016 FINANCIAL COMPENSATION REPORT
FINANCIAL COMPENSATION
Median and 75th percentile total compensation by occupation
Base N Bonus N Other Comp N Total
Comp N
Financial Advisor/Broker 69,000 29 31,500 24 8,500 33 135,000 33
75th Percentile 100,000 91,859 35,500 245,000
Bank/Trust/Private Client Portfolio Manager 154,500 32 33,000 29 16,040 32 205,005 32
75th Percentile 182,500 50,000 35,050 277,250
Financial Analyst (corporate) 63,000 23 5,000 18 2,500 23 72,000 23
75th Percentile 81,750 9,750 5,500 95,850
Portfolio Manager (equities) 125,000 19 30,000 15 9,900 20 152,000 20
75th Percentile 150,000 50,000 21,000 233,475
Chief Investment Officer 192,500 12 60,000 11 27,500 12 342,500 12
75th Percentile 237,500 100,000 66,500 387,500
Private Client Professional (other) 114,000 10 21,000 8 6,355 10 163,855 10
75th Percentile 180,000 53,750 13,250 209,725
Compensation satisfaction vs. likelihood of looking for new job
Individuals who do not feel they are fairly compensated report they are more likely to look for a new job than their counterparts who believe they are fairly compensated.
Fairly compensated Not fairly compensated
8.9% 33.8%
13.1%
36.4%
48.2%
22.1%
29.8%
7.8%
Very Likely Likely Unlikely Very Unlikely
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2016 FINANCIAL COMPENSATION REPORT
FINANCIAL COMPENSATION
Reported median compensation for those with less than 5 years of experience for selected occupations
Base N Bonus N Other Comp N Total
Comp N
Financial Analyst (corporate) 55,000 13 5,000 9 3,000 13 63,000 13
Financial Advisor/Broker 60,250 6 8,000 5 7,350 6 83,250 6
Reported median compensation for those with 5 to less than 10 years of experience for selected occupations
Base N Bonus N Other Comp N Total
Comp N
Financial Advisor/Broker 75,000 7 30,000 6 8,131 9 105,000 9
Financial Analyst (corporate) 78,750 8 2,500 7 1,800 8 89,000 8
Bank/Trust/Private Client Portfolio Manager 112,500 6 27,500 6 8,500 6 166,250 6
Buy-side Research Analyst (equity) 115,000 5 47,000 5 5,000 5 165,450 5
Median total compensation for those with less than 5 years of experience is $70,500
Median total compensation for those with 5 to less than 10 years of experience is $111,500
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2016 FINANCIAL COMPENSATION REPORT
FINANCIAL COMPENSATION
Median total compensation for those with 10 to less than 20 years of experience is $176,250
Median total compensation for those with more than 20 years of experience is $274,000
Reported median compensation for those with 10 to less than 20 years of experience for selected occupations
Base N Bonus N Other Comp N Total
Comp N
Financial Advisor/Broker 69,000 9 31,500 6 23,500 10 181,500 10
Portfolio Manager (equities) 130,000 9 46,000 7 8,000 9 225,000 9
Bank/Trust/Private Client Portfolio Manager 158,000 8 35,000 7 27,200 8 214,205 8
Chief Investment Officer 142,000 5 45,000 5 6,300 5 340,000 5
Reported median compensation for those with more than 20 years of experience for selected occupations
Base N Bonus N Other Comp N Total
Comp N
Bank/Trust/Private Client Portfolio Manager 180,000 17 33,000 15 21,000 17 260,000 17
Financial Advisor/Broker 100,000 7 90,000 7 6,500 8 286,500 8
Chief Investment Officer 230,000 7 100,000 6 30,000 7 345,000 7
Chief Executive Officer 4 3 100,000 5 462,000 5
Portfolio Manager (equities) 128,000 5 3 20,000 5 171,800 5
Note: Cells in gray reflect fewer than five responses.
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2016 FINANCIAL COMPENSATION REPORT
SURVEY METHODOLOGY
Survey methodology
MethodThe CFA Societies of Naples, Orlando, South Florida and Tampa Bay shared an online survey with financial professionals in their respective market areas. The survey was structured so all data gathered were anonymous with no identifiable information requested.
RespondentsRespondents were financial and investment professionals, and totaled 255 unique and completed responses.
TimingThe survey was active from April 18 – May 13, 2016.
AssumptionsThe findings from this survey were derived from self-reported data. Because the survey used sampling methodology and broadly defined positions, survey findings are not necessarily representative of the total population. 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.
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About the CFA Societies of Florida
The CFA Societies of Florida are the premier professional organizations for investment professionals to connect with Chartered Financial Analysts throughout the state. Each Society strives to serve its broad membership through relevant educational programs, membership support services and opportunities for advancement such as networking events, discounts on educational materials, and more.
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2016 FINANCIAL COMPENSATION REPORT
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