Without a financial analyst handling the finances and finance related decisions of a company, the company is practically left to fend for its own. A financial analyst is responsible for detailed financial planning of the company and based on this he formulates certain plans by which the finances can be utilized in the best possible manner. This includes, handling financial management, investments and returns, along with advising people on how to handle their finances. This makes a financial analyst a very, very important part of any organization, because he is literally responsible for handling the finances of the company and determining the profit and loss of it. For a person who handles a job as important as this one, the pay has to be good. The following article will talk about a financial analyst’s salary range and let you in on the kind of career opportunities that open up for him as he progresses further into his career.
The Salary Stages
The average financial analyst salary falls in the range of USD 44,000 – USD 70,000 per annum. This range is determined by many factors that include the city of employment, educational qualifications, the industry of employment and several related fields, which also involve being multi-skilled and also taking up the role of a financial adviser. These pointers will determine how much a financial analyst will make when he starts out at the job and how his career prospects will shape up as he puts in years of service.
Salary at the Entry-Level
The financial analyst starting salary falls in the range of USD 39,500 – USD 53,000. With every passing year the salary will increase so that a financial analyst who has around 4 years of experience will earn up to USD 58,000 and one who has more than 20 years of experience will earn about USD 80,000. A senior financial analyst’s salary can even go till USD 85,000.
It is seen that a financial analyst who has a Master of Business Administration (with finance) degree earns the maximum salary figures, touching USD 70,000. Other degrees that can help earn a substantial salary are those of bachelor of Science with Finance as a subject (approx USD 56,000), Bachelor of Science with accounting (USD 61,000), and a Master of Business Administration (USD 65,000).
Sectors and Places
The salary depends a lot on the sectors of employment and the cities or states in which he is hired. It is seen that the investment banking sector pays a financial analyst the maximum percentage of salary range as opposed to any other sector, which is almost USD 61,000. The other popular sectors are the financial sector (USD 58,000), Health care (USD 56,000), Insurance (USD 58,000) and Banking (USD 55,000).
A financial analyst hired in New York will earn about USD 68,000, which is higher than the amount compared to any other place in the United States. California, Illinois, Florida, Virginia, Texas, and Massachusetts are some other places that pay a good salary range to a financial analyst.
P.S. – All the figures provided are an approximate salary range. These will change with each company and its policies. These figures are of the year 2010-2011.
The financial analyst’s job description is proof enough of the kind of salary he deserves. This article has tried to cover the varied aspects of the financial analyst’s salary range and his career development opportunities.