How Much Do CFA Charterholders Make?

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Earning your CFA charter makes you ready for growth in your career as a finance professional. But how much salary can you earn? According to Payscale, the CFA Charterholder salary in the United States is from $64,234 to $255,000 a year. There is a lot you can do with the CFA charter in jobs with varying degrees of responsibility. Also, bonuses and years of experience make a difference. Well, here let us look at what the average salary is for some of the most common jobs for CFA Charterholders.

Portfolio Manager Salary (With the CFA Charter)

According to CFA Institute, there are 22% of CFA charterholders employed as Portfolio Managers. The CFA Society Chicago’s annual financial compensation survey reports that the median base annual salary for a fixed income portfolio manager is $132,500. And for an equities portfolio manager, it is $136,000.

Research Analyst Salary (With the CFA Charter)

In a survey compiled by CFA Institute, 15 percent of global CFA Charterholders said that they were research analysts, responsible for analyzing mathematical processes and also qualitative data to make future predictions. Payscale reports that CFA charterholders who are research analysts earn $73,954 a year, on average.

Chief-Level Executive Salary (With the CFA Charter)

CFA Institute says that about 7% of all CFA Charterholders in the world have made it to the C-suite. Chief investment officer and chief financial officer are the most common titles for executives with the CFA charter. Also, CFA Society Chicago says that chief investment officers with CFA charters have a median annual base salary of $227,500. While for CFOs, Payscale says it is $170,618.

Consultant Salary (With the CFA Charter)

The companies hire consultants to bring an independent expert perspective to business valuation, give economic forecasts and analysis, and identify chances to grow shareholder value. According to CFA Society Chicago, the median base annual salary of CFA charterholders who work as consultants is $74,000.

Risk Manager Salary (With the CFA Charter)

Financial risk managers assist identify and assess potential risks that a company faces or can face in the future. According to CFA Society Chicago, the median base annual salary of CFA charterholders who work as Risk Managers is $126,060.

Relationship Manager Salary (With the CFA Charter)

Several CFA Charterholders work to assist their company maintain business relationships with partners and clients to prevent churn. These relationship managers average $120,000 a year. And they number approximately 5% of all CFA Charterholders.

Financial Advisor Salary (With the CFA Charter)

A small percentage of CFA Charterholders are financial advisors, assisting clients make decisions about investments, tax laws, and also insurance product selection. On average, they are able to earn a median base salary of $110,000.

Total Compensation and CFA Charterholders Salary – Here’s Guide

Compensation for CFA Charterholders usually consists of a combination of base salary, performance-based bonuses, and several types of equity or profit-sharing.  CFA Charterholders are able to have salaries which are quite high, relative to other professionals in the finance industry. Here, we are going to inform you of a general CFA salary guide.

Below is the general formula to calculate total compensation:

Base CFA Salary + Cash Bonus + Equity = Total Compensation

According to the CFA Society, in the United States, the average total compensation for CFA Charterholders is about $300,000. The median base salary for CFA Charterholders is about $180,000 that leaves the balance being a split between cash bonuses and equity or profit-sharing.

CFA Salary – Compensation by Job Type

Averages do not provide the full picture, because there is a wide range for CFA salary, depending on the specific job title.

Here is a breakdown of median total compensation by job type:

  • Financial Analyst (corporate) $80,930
  • Portfolio Manager (fixed income) $253,250
  • Chief Investment Officer $316,600
  • Portfolio Manager (equities) $344,500

For note: The above information was released in a 2016 CFA salary compensation survey.

How to Increase Your CFA Salary?

If you are a CFA Charterholder who wants to increase your CFA salary, the key is to make yourself more valuable.  This will include strategies such as asking for more responsibility, mentoring junior team members, taking on a cross-functional role, and upgrading your technical financial skills. Also, you are able to be a lynchpin and an indispensable member of the team.

In addition, it is always beneficial to know the current wage market for your skill level and job function. If you notice that you are being underpaid, or if a certain skill you have raises your wage potential, then do not be afraid to negotiate a raise during performance evaluations. The key to increase your pay is by proving your worth through your work and doing proper research into what level of compensation your knowledge and skills must command.

Why Choose A Career In The Investment Industry?

The companies and professionals in the investment industry are stewards of capital. They assist the clients make investment decisions, invest their own money, and provide services to increase financial markets. The scope of these services are able to include trading, asset management; constructing and managing investment portfolios and funds, and regulation of these systems. Enrolling in the CFA (Chartered Financial Analyst) Program and earning the CFA charter will prepare and position you for a variety of career paths in the investment industry.

Career Paths and Jobs for the CFA Charterholders

Widely considered the peak for professional development in investment management, the CFA (Chartered Financial Analyst) designation is valued by the employers for roles and functions in every sector of the global finance industry, including portfolio management, private wealth, analysis, and consulting. But the CFA (Chartered Financial Analyst) charter also equips professionals with the versatility to take their own career paths in different directions.

Where do CFA Charterholders Work?

CFA Charterholders earn their salary across a wide range of corporate finance roles.

Here are some typical Jobs for CFA Charterholders:

  • Portfolio management
  • Research
  • Consulting
  • Risk analysis and risk management

Here are typical Investment Management Sectors among CFA Charterholders:

  • Asset management
  • Private wealth management
  • Commercial banking
  • Investment banking
  • Insurance

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