2015 FINANCIAL COMPENSATION SURVEY

October 2015

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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.

New for our market, we are excited to announce the highly anticipated findings of the 2015 Financial Compensation Survey. This survey, which had been void in the market since 2007, provides a region-specific 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

2015 Financial Compensation Survey Findings and Results

Letter from the President

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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 Compensation 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.

Bachelors Degree Graduate Degree$0

$50,000

$100,000

$150,000

$200,000

$250,000

$121,374

$168,100

$154,250

$218,100

Median Total Compensation

Non-Charterholder CFA Charterholder

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.

2015 Financial Compensation Survey Findings and Results

Executive Summary

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2015 Financial Compensation Survey Findings and Results

Respondent Profiles

Charterholder Status

Charterholder 83% None 9% Candidate 8%

Years of Experience <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% Not applicable 10%

Likelihood of Looking for New Role in 2015

Very Likely 11% Likely 20% Unlikely 41% Very Unlikely 29%

Education Some college but 1% no degree Associate degree 0% Bachelor degree 44% Graduate degree 54% Doctorate 1%

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2015 Financial Compensation Survey Findings and Results

Respondent Profiles

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%

Fifteen Most Common Job Titles

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%

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%

Organization Type

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2015 Financial Compensation Survey Findings and Results

Financial Compensation

Increased more than 20% 9% Increased 10<20% 16% Increased 0<10% 54% Stay the same 16% Decline 4%

Primary Determinant of Bonus

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%

Other Forms of Compensation

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%

Change in Total Compensation

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2015 Financial Compensation Survey Findings and Results

Financial Compensation

Median Total Compensation by Occupation

Base N Bonus N Other Comp

N Total Comp

N

Bank/Private Client Portfolio Manager 105,000 9 27,500 9 9,090 9 131,000 9

75th Percentile 131,500 45,000 33,000 224,500

Buy-side Research Analyst (equity) 117,500 11 50,000 11 14,000 11 199,000 11

75th Percentile 122,500 90,000 22,400 239,900

Buy-side Research Analyst (fixed income) 110,000 19 47,500 19 9,000 19 164,000 19

75th Percentile 144,500 68,500 12,710 226,750

Buy-side Trader (fixed income) 165,000 10 102,000 9 43,000 10 195,790 10

75th Percentile 172,000 150,000 86,000 440,750

Chief Executive Officer/ Chief Financial Officer 145,000 10 24,000 10 44,250 10 245,500 10

75th Percentile 213,750 97,500 97,000 469,675

Chief Investment Officer 249,500 12 80,000 10 37,375 13 400,000 13

75th Percentile 400,000 355,000 94,000 618,000

Consultant 135,000 25 40,000 21 6,000 25 190,000 25

75th Percentile 185,000 70,000 16,000 305,000

Financial Advisor/Broker 100,000 9 25,000 8 6,500 11 131,500 11

75th Percentile 100,000 46,250 36,558 215,750

Head of Fixed Income 280,000 5 220,000 5 180,000 5 680,000 5

75th Percentile 330,000 2,000,000 282,350 2,575,000

Manager of Managers 140,000 11 60,000 9 12,000 11 223,400 11

75th Percentile 177,500 105,000 35,200 360,500

Manager Research (alternatives) 121,500 8 31,500 8 4,310 8 162,350 8

75th Percentile 182,500 82,000 12,150 274,750

Manager Research (equity) 113,500 13 21,500 12 5,044 13 140,960 13

75th Percentile 132,000 36,000 9,800 173,000

Manager Research (fixed income) 101,500 8 30,000 7 5,250 8 135,500 8

75th Percentile 142,500 45,000 9,675 184,550

continued»

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2015 Financial Compensation Survey Findings and Results

Financial Compensation

Median Total Compensation by Occupation

Base N Bonus N Other Comp

N Total Comp

N

Portfolio Manager (equities) 140,000 23 50,500 22 23,000 23 232,282 23

75th Percentile 159,500 130,000 39,000 318,000

Portfolio Manager (fixed income) 142,000 14 55,000 14 26,100 14 237,100 14

75th Percentile 194,500 63,000 84,300 345,800

Private Client Professional (other) 103,000 10 13,500 10 11,350 10 127,350 10

75th Percentile 159,575 19,500 25,125 202,700

Risk Manager 110,000 9 21,000 9 6,000 9 141,500 9

75th Percentile 115,000 45,000 7,500 167,500

Sell-side Research Analyst (equity) 125,000 13 140,000 13 10,000 13 295,588 13

75th Percentile 155,000 160,000 25,636 335,000

Sell-side Reseach Analyst (fixed income) 107,500 8 25,000 8 4,750 8 144,250 8

75th Percentile 117,000 38,250 6,500 149,500

Strategist 120,000 5 n/a n/a 5,000 5 173,400 5

75th Percentile 140,000 n/a 15,500 240,000

Median total compensation was $176,000

84% of respondents had total compensation of $100,000 or more

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2015 Financial Compensation Survey Findings and Results

Financial Compensation

Median total compensation for those with more than 20 years of experience was $290,540

100% of respondents with more than 20 years of experience had total compensation of $100,000 or more

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

Portfolio manager (equities) 151,000 13 51,000 13 25,000 13 248,000 13

Portfolio manager (fixed-income) 164,000 6 60,000 6 42,600 6 250,100 6

Consultant 188,000 7 50,000 5 7,500 7 292,500 7

Manager of Managers 170,000 7 70,000 7 12,000 7 334,000 7

Buy-side research analyst (equity)

Buy-side research analyst (fixed-income)

Private Client Professional (other)

Chief Executive Officer/Chief Financial Officer 225,000 5 110,000 5 109,000 5 471,000 5

Chief investment officer 169,000 7 82,500 6 38,450 8 305,108 8

Bank/Private client portfolio manager

Risk manager

Chart includes most popular job titles; cells in gray represent five or fewer responses.

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2015 Financial Compensation Survey Findings and Results

Financial Compensation

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

Portfolio Manager (equities) 135,000 7 57,000 7 28,750 7 204,000 7

Portfolio Manager (fixed-income) 184,000 5 60,000 5 79,200 5 327,200 5

Consultant 140,000 9 67,500 8 10,000 9 211,000 9

Manager of Managers

Buy-side Research Analyst (equity) 122,500 6 87,500 6 16,400 6 218,750 6

Buy-side Research Analyst (fixed-income) 154,500 6 70,500 6 22,000 6 243,750 6

Private Client Professional (other) 103,000 5 15,000 5 10,700 5 133,700 5

Chief Executive Officer/Chief Financial Officer

Chief Investment Officer 275,000 5 37,375 5 425,000 5

Bank/Private Client Portfolio Manager 105,000 7 27,500 7 9,090 7 131,000 7

Risk Manager 107,500 6 16,000 6 5,750 6 131,375 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

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2015 Financial Compensation Survey Findings and Results

Financial Compensation

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

Portfolio manager (equities)

Portfolio manager (fixed-income)

Consultant 110,000 7 24,000 6 4,000 7 139,500 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

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2015 Financial Compensation Survey Findings and Results

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

Portfolio Manager (equities)

Portfolio Manager (fixed-income)

Consultant

Manager of Managers

Buy-side Research Analyst (equity)

Buy-side Research Analyst (fixed-income) 91,000 10 24,000 10 7,000 10 106,840 10

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

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2015 Financial Compensation Survey Findings and Results

Financial Compensation

Compensation by Employer Size

Breakdown by Assets & Employee Size Base N Bonus N Total Comp

N

Under $500 millionUnder 50 105,000 9 18,000 9 158,000 11

50 to less than 250

250 to less than 500

500 to less than 2,500

2,500 to less than 5,000

5,000 or more

$500 million to less than $2 billionUnder 50 123,500 14 23,000 14 174,138 14

50 to less than 250

250 to less than 500

500 to less than 2,500

2,500 to less than 5,000

5,000 or more

$2 billion to less than $10 billionUnder 50 130,000 16 85,000 13 226,500 16

50 to less than 250 135,000 6 32,000 7 204,000 7

250 to less than 500

500 to less than 2,500

2,500 to less than 5,000

5,000 or more

$10 billion to less than $50 billionUnder 50 105,000 6 35,000 5 156,900 6

50 to less than 250 187,000 9 135,500 8 316,000 9

250 to less than 500 140,000 11 48,000 10 224,500 11

500 to less than 2,500 134,000 43 50,000 42 208,000 43

2,500 to less than 5,000 100,188 16 19,000 16 132,720 16

5,000 or more 172,000 6 58,500 6 269,000 6

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2015 Financial Compensation Survey Findings and Results

Financial Compensation

Additional detailed analysis of this compensation breakdown is available upon request from CFA Society St. Louis.

"Not Applicable" represents the various organizations financial professionals work for that do not manage assets or investments.

Compensation by Employer Size

Breakdown by Assets & Employee Size Base N Bonus N Total Comp

N

$50 billion to less than $100 billionUnder 50 120,000 5 25,000 5 142,000 5

50 to less than 250

250 to less than 500

500 to less than 2,500

2,500 to less than 5,000

5,000 or more

Over $100 billionUnder 50

50 to less than 250 174,000 16 50,000 14 290,850 16

250 to less than 500

500 to less than 2,500

2,500 to less than 5,000

5,000 or more 114,000 47 38,500 46 153,400 47

Not ApplicableUnder 50

50 to less than 250

250 to less than 500

500 to less than 2,500 150,000 5 125,000 5

2,500 to less than 5,000 60,000 5 5,000 5 66,000 5

5,000 or more 112,500 9 24,000 8 144,000 9

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2015 Financial Compensation Survey Findings and Results

Financial Compensation

Average Ideal Compensation Structure for Selected Occupations

0 20 40 60 80 100

Bank/Private Client Portfolio Manager 25%66% 6% 3%

Buy-side Research Analyst (equity) 32%63% 4% 1%

Buy-side Research Analyst (fixed income) 26%69% 4% 2%

Buy-side Trader (fixed income) 36%55% 7% 3%

Chief Executive Officer/Chief Financial Officer 30%51% 18% 2%

Chief Investment Officer 19%55% 17% 9%

Consultant 22%73% 5% 0%

Financial Advisor/Broker 25%56% 5% 15%

Manager of Managers 26%64% 9% 1%

Manager Research (alternatives) 20%75% 5% 0%

Manager Research (equity) 22%71% 7% 1%

Manager Research (fixed income) 30%63% 6% 1%

Portfolio Manager (equities) 32%60% 8% 1%

Portfolio Manager (fixed income) 26%64% 10% 0%

Private Client Professional (other) 20%76% 2% 2%

Risk Manager 17%78% 3% 2%

Sell-side Research Analyst (equity) 38%56% 6% 0%

Sell-side Reseach Analyst (fixed income) 22%73% 4% 1%

Strategist 24%68% 5% 3%

– Base % – Cash Bonus % – Long-term % – Other %

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2015 Financial Compensation Survey Findings and Results

Survey Methodology

Survey Methodology

MethodAn online survey was deployed to known financial professionals in the region represented by CFA Society St. Louis. Email 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.

RespondentsRespondents are financial and investment professionals, totaling 290 unique and completed responses.

TimingThe survey was active from April 15, 2015 – May 11, 2015.

AssumptionsThe 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.

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2015 Financial Compensation Survey Findings and Results

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.

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