As a follow-up to our recent article on the difficulty of passing the CFA and our previous article on pay per qualification, we’d like to follow-up with a closer look at the compensation enjoyed by those who pass the CFA exams.
This has long been something of a mystery. The last time the CFA Institute monitored compensation levels for its members was back in 2007, when it elicited the results shown in the table below. These suggested that median compensation varied from $121k (£76k) to $437k (£277k) depending upon experience and whether you were an equity analyst or a portfolio manager focused on equities or fixed income.
Has CFA pay fallen dramatically since? It’s hard to say on a like-for-like basis. However, as the number of people taking the CFA exams has increased and as an increasingly broad range of jobs is associated with CFA qualifications, it may be that the associated level of pay has fallen.
Our own stats suggest the average job for which some kind of CFA qualification is specified in London pays around £66k. The graph below, based on figures taken from eFinancialCareers UK on two days this month, suggests the bulk of CFA-related jobs command compensation less than £80k. Hardly any will pay £150k or more.
As ever, there are caveats here. Firstly, the jobs we’re looking at are open to people who’ve only passed CFA Level 1. By comparison, 80% of the people the CFA surveyed in 2007 were full charterholders. Secondly, the data we have is derived from advertisements on this site. Maybe there’s a treasure trove of higher paid CFA jobs hidden on the books of asset management headhunters. Then again, maybe there isn’t.