Would you take a 20%-25% base paycut (I am going from ASO-1 level) to move to a really good role, with a nice team and good learning opportunities at a $50bn-$60bn long-only AM? Honestly, I dont want to go backwards in my career and thats what is concerning me. If this is just a short-term sacrifice for long term gain, then I am really ok with it.
On the one hand, I really like the opportunity, the team, the manager as well as the firm. Since this is a long only, I also see that future opportunities might not be that easy to come by (given the turnover) so i don’t want to whine about the money.
On the other hand, pay cuts are awful. Also, I feel like sell-side ER is in for a huge shock next year (especially my shop, despite being a BB). Obviously, hours aren’t great on the sell-side (on my team we work 70-80 hrs AT LEAST, with weekends as well).
I am leaning towards accepting it but wanted to get views about this from others on the forum about what I should consider when trying to negotiate? and if this is common with long only AM offers?
If your pay cut is like $100k to $80k and you are young, then odds are that is is a good move. If it’s like $300k to $225k, then it might take a while to regain that compensation level. I’m not sure what the role is, but I will assume, based on your comment that it is a good job and not a “grass is greener” case.
Of course this is a very personal decision (which only you have the best information to make the decision)… but to broadly answer your question, personally I would definitely take a pay cut for the right opportunity.
Too many people over-emphasize compensation at the expense of de-emphasizing other factors (interesting work, firm culture, hours, etc) – which I believe is a mistake not only in the long-term, but even in the short-term. Don’t discount softer factors like being engaged and happy at your job (or at least able to tolerate your job). You might be pleasantly surprised at how your career (and compensation) can grow over time when you’re in a spot that aligns well with your skills and personality.
I really like the role, but also want to negotiate. I wanted to negotiate once I get something in writing, but then another friend of mine told me that its better to do it before its in writing.
+1. Getting good experience on the buy side is worth a lot early in your career. There may be good internal opportunities with such a large asset manager. There’s a good chance you can get your money back with good performance in 12-24 months.
My understanding was that it is normal to take a pay cut initially when switching from sell side to buy side, at least in the junior levels. I’m not sure how experienced you are, but junior buyside roles seem to pay a little less at first. Numi would know best though