The financial analyst salary is a critical component of the financial industry, as these professionals play a vital role in helping businesses and organizations make informed investment decisions. According to the Bureau of Labor Statistics (BLS), the median annual salary for financial analysts in the United States was $85,660 in May 2020. However, salaries can vary widely depending on factors such as location, industry, level of experience, and specific job duties.
Factors Affecting Financial Analyst Salary
Several factors can influence the salary of a financial analyst, including the type of industry they work in, the size and type of company, and the specific job duties and responsibilities. For example, financial analysts working in the securities and commodity exchanges industry tend to earn higher salaries, with a median annual salary of 123,110, according to the BLS. In contrast, financial analysts working in the credit intermediation and related activities industry tend to earn lower salaries, with a median annual salary of 74,490.
Location is also a significant factor, with financial analysts working in major cities such as New York and San Francisco tend to earn higher salaries than those working in smaller cities or rural areas. Additionally, level of experience can also impact salary, with more experienced financial analysts tend to earn higher salaries than those just starting out in their careers. Finally, specific job duties can also influence salary, with financial analysts who specialize in areas such as investment banking or portfolio management tend to earn higher salaries than those who work in more generalist roles.
Industry-Specific Salaries
Financial analysts can work in a variety of industries, each with its own unique salary range. For example:
| Industry | Median Annual Salary |
|---|---|
| Securities and commodity exchanges | 123,110</td></tr> <tr><td>Investment banking</td><td>115,000 |
| Portfolio management | 105,000</td></tr> <tr><td>Credit intermediation and related activities</td><td>74,490 |
| Insurance carriers | $73,610 |
It’s worth noting that these figures are just a few examples, and salaries can vary widely depending on the specific company, location, and other factors. Additionally, these figures do not include non-wage benefits, such as bonuses, health insurance, and retirement plans, which can also impact the total compensation package for financial analysts.
Salary Ranges by Experience Level
As with many professions, the salary range for financial analysts can vary significantly depending on the level of experience. For example:
| Experience Level | Salary Range |
|---|---|
| Entry-level (0-3 years) | 60,000 - 80,000 |
| Mid-level (4-7 years) | 80,000 - 110,000 |
| Senior-level (8-12 years) | 110,000 - 140,000 |
| Executive-level (13+ years) | 140,000 - 170,000 |
Again, these figures are just a few examples, and salaries can vary widely depending on the specific company, location, and other factors. However, they do provide a general idea of the salary ranges that financial analysts can expect at different stages of their careers.
Education and Certification Requirements
Financial analysts typically need a bachelor’s degree in a field such as finance, accounting, or economics, and many also pursue advanced degrees such as an MBA or CFA (Chartered Financial Analyst) designation. The CFA designation, in particular, is a highly respected credential in the industry, and can significantly impact salary potential. According to the CFA Institute, the average salary for CFA charterholders is around 150,000 per year, compared to around 100,000 per year for non-charterholders.
CFA designation requires a combination of education, experience, and passing a series of rigorous exams. The process typically takes several years to complete, and requires a significant investment of time and money. However, for those who are serious about advancing their careers as financial analysts, the CFA designation can be a highly valuable credential.
Salary Impact of CFA Designation
As mentioned earlier, the CFA designation can have a significant impact on salary potential for financial analysts. According to the CFA Institute, CFA charterholders tend to earn around 50% more than non-charterholders, with average salaries ranging from around 100,000 per year for entry-level charterholders to over 200,000 per year for senior-level charterholders.
| Experience Level | Non-CFA Salary | CFA Salary |
|---|---|---|
| Entry-level (0-3 years) | 60,000 - 80,000 | 90,000 - 120,000 |
| Mid-level (4-7 years) | 80,000 - 110,000 | 120,000 - 160,000 |
| Senior-level (8-12 years) | 110,000 - 140,000 | 160,000 - 200,000 |
| Executive-level (13+ years) | 140,000 - 170,000 | 200,000 - 250,000 |
Again, these figures are just a few examples, and salaries can vary widely depending on the specific company, location, and other factors. However, they do provide a general idea of the salary impact of the CFA designation, and highlight the potential benefits of pursuing this credential for those who are serious about advancing their careers as financial analysts.
What is the average salary for a financial analyst in the United States?
+According to the Bureau of Labor Statistics (BLS), the median annual salary for financial analysts in the United States was $85,660 in May 2020.
What factors can impact the salary of a financial analyst?
+Several factors can impact the salary of a financial analyst, including the type of industry they work in, the size and type of company, the specific job duties and responsibilities, location, level of experience, and specific job duties.
How can I increase my salary potential as a financial analyst?
+One key way to increase your salary potential as a financial analyst is to pursue advanced education and certifications, such as the CFA designation. Additionally, gaining experience and building a strong network of professional contacts can also help to increase your salary potential.
