Financial Analyst Salary
March 23, 2011
According to the United States Department of Labor, the median annual earnings of a financial analyst were close to $57,100. The middle 50 percent earned a financial analyst salary of around $43,660 to $76,620 in a year. The lowest 10 percent received less than $34,570 and the highest 10 percent got more than $108,060. The median annual earnings in the companies that have the largest number of employed financial analysts are the following. Those that were involved in other financial investment activities earned $74,860 while those who worked for management of companies and enterprises got $60,670. Securities and commodity contracts intermediation and brokerage earned $58,540. Workers of on-depository credit intermediation received $51,700 while those who were employed for depository credit intermediation was paid $51,570. The median annual earnings of individuals who worked as personal financial advisers were around $56,680 back in 2002. The middle 50 percent received a pay check that ranges from $36,180 to $100,540. The median annual earnings of the industries that have the largest number of personal financial advisers are as follows. Those that were involved in other financial investment activities earned $74,260. Securities and commodity contracts intermediation and brokerage received $68,110 while those who worked for depository credit intermediation got $51.030.
In addition to their salary, financial analysts are entitled to receive bonuses that can generally to their basic pay. Their bonuses are usually based on how well their predictions live up to the actual performance of a benchmark investment. In fact, personal financial advisers who work for financial companies regularly receive a bonus together with their pay. On the other hand, advisers who work for financial-planning organizations or who are self-employed charge a particular per hour rate for their services. They also charge a one set fee for an all-inclusive plan, depending on its difficulty. Those who are in-charge of managing their client’s assets usually charge a percentage of those assets. But the majority of personal financial advisers receive a percentage for financial products that they were able to sell and they also charge a separate fee. In other words, bonuses are much more important than the salary for a person who works in the financial industry. These commissions can go even double the amount of their yearly earnings.
A more recent review on the financial analysts salary reveals that their median annual wages are around $73,150. This amount is excluding bonuses and commissions that they receive. This information shows that a financial analyst is earning more than double of the national median wage. The middle 50 percent has a pay cheque that ranges from $54,930 to $99,100. The lowest 10 percent got less than $43,440 while the highest 10 percent received more than $141,070. Again, the annual performance bonuses that they receive can significantly increase their total earnings. Rookies in the financial field would be happy to know that this is one of the higher paying jobs. However, there are variations in the pay of a financial analyst. Those who have a work experience of less than one year receive $41,000 to $56,000 while those who are armed with a year or so earn around $46,000 to $61,000. Five to nine years in the industry will increase ones pay to $50,000 to $70,000. And those who have 10-20 years of experience enjoy a very high pay or $51,000 or more. These people usually work as senior financial analysts for certain industries.
The salaries of senior financial analysts all over the United States vary widely. For one, someone who works for the HSBC Bank USA in New York earns around $750,000 a year while the one who works for Microsoft Corporation in Redmond, Washington gets a pay check or $282,340. The senior financial analyst of Empyrean Capital in Los Angeles receives $250,000 a year. The one employed in Greenwich Equity Group in Connecticut has a yearly wage of $240,000 and the senior analyst is Crossbow Ventures Inc. in Florida gets $200,000. Just like any other career, the salary for this industry also depends on a lot of factors. Geographic location, experience and level of education are just some of them.
Chartered Financial Analyst Salary
A chartered financial analyst’s (CFA) salary is determined by various factors such as the job types, work experience, employer type and other things. According the U.S. Department of Labor, the median annual salary of a person holding this job title is around $57,100. If it is based upon the job type, then it is $61,209 for a corporate financial analyst and $145,820 for a chief financial officer. Senior financial analysts get paid around $79,242 while junior financial analysts receive $62,457. The vice president of the finance department receives the highest pay check which amounts to $131,700.
The scale is much unswerving when the pay is based on work experience. A chartered financial analyst who is in his or her first year can make around $52,000. The pay will make a leap to an average of $63,000 per year once he or she has one to four years of experience. Spending five to nine years in the business will increase the pay to $90,000. A high experienced CFA that holds 20 years behind him or her usually gets $150,000 per year or even more. The type of employer also affects the figures when it comes to a CFA’s salary. Those who work under the management of a team employer can get around $50,400 while the ones working for an organization are paid as high as $100,000. A CFA working for a private company has a median salary of $83,253 while a person who works for a foundation can get $96,110. The state or local government is paying around $83,000 while a self-employed CFA has a median wage of $80,000. Becoming a CFA is one of the best career moves in the industry of business as it is stable and has many great benefits.
Chartered Financial Analyst Training
To become a Chartered Financial Analyst, one has to pass the CFA Exam. This test is composed of three levels and they must be taken in order. An individual has to pass the first level before moving on to the next one. Educational attainment and work experience are pre-requisites for this designation. One must have a bachelor’s degree or a comparable non-US degree and four years of job experience to be able to take the exam. The CFA examination has been acknowledged as an important educational certification. Sadly, the passing rate up until today is below 50 percent. Numerous finance companies and businesses have made this designation a part of their job application requirements. In other words, applicants who have a CFA charter have more chance of getting a better job than those who don’t. With regards to the notes and materials for the exam, they are revised regularly to keep up with the current content of the CFA program. In order to pass this examination, one must be dedicated to study the notes and prepare for the certification.
Financial Analyst Job Description
The general idea of a financial analyst’s job is to provide guidance to businesses and individuals who make investment decisions. Aside from that, they also assess the performance of stocks, bonds, commodities and other types of investments. They usually work for financial industries such as banks, insurance companies, mutual and pension funds, securities firms, business media and many more. They are in-charge of analyzing a company’s financial statement, commodity prices, sales, costs, expenses and tax rates. They do all of these duties in order to determine a company’s value and predict its future earnings. They join their heads with the company’s officials to get a better insight into the firm’s prospects and management. They usually focus on the factors that can affect a specific industry, region or type of product. A financial analyst should understand the new regulations, policies, political and economic trends that may influence the investments that they are tracking. They make use of spreadsheets and statistical software packages to study financial data, spot trends, create portfolios and develop forecasts.