CFA Salaries?…Yes, Please!
Wondering if the CFA is worth it?
Is all of this studying going to pay off?
In this post, I’m going to address what is reasonable to expect when it comes to CFA Charterholders’ salaries.
Make Sure You’re in the Right Job First
First things first, let’s make sure you are in the right place. If you plan on doing any kind of security analysis, then the CFA Charter is a nice feather in your cap. If you’re looking to boost your earnings potential and are not sure whether you can afford (or want) to go get your MBA, then the CFA designation is a great way around that expensive degree.
Considering a position in marketing in private wealth management? Well, you probably don’t need to get your CFA. It might help you understand the business a little better but the job requirements don’t likely include knowledge of the CFA curriculum and thus won’t likely have a major impact on your earnings.
Before I get into potential CFA salaries, there are a few things to keep in mind. Take a look at the below caveats before you go storming into your boss’ office demanding a raise:
- Passing all three exams won’t guarantee you higher compensation right off the bat…experience counts.
- Employers are happy to see progress toward the CFA designation. But, passing each level doesn’t necessarily come with a pay raise!
- Passing all three exams will almost always improve your chances of higher pay than just passing the first two. Consider a CFA tutor to help your odds of passing.
- The salaries below reflect averages or medians, and they may have a wide range!
A Look at Salaries
In a May 2015 study by the CFA Society of Pittsburgh, it was found that well over 50% of the respondents made over $100,000 in terms of salary. Almost 90% of the respondents received a bonus. The median bonus was around $34,000. Keep in mind that there were 85 respondents and the minimum number of years worked was seven. In another 2015 study from the CFA Society of Toronto, Canada, it was found that the median total compensation was $147,550 (Canadian dollars).
As you would expect, larger metropolitan areas have the largest potential for average/median earnings. That said, the ranges are all over the map…literally. I worked in New York City with a CFA Charterholder that also had an MBA from a top 15 school in the U.S. and he made less than $100,000. At the same time, I’ve had meetings with clients with CFA Charters in Minneapolis, MN, Madison, WI, and Kansas City, KS where I would be willing to bet they made significantly more than that.
Don’t Do it For the Money
In the end, it’s great to have any idea about the compensation you should expect. But ultimately being happy with your job should be the number one focus. Take Warren Buffett’s admonition that you should follow your passion so that you end up tap-dancing to work.