Characteristics of Finance Jobs:
An Industry Insider's Perspective

 

Provided for Illinois State University Finance students by
Chad S. Hancock, CFA ®
Portfolio Manager, Country Trust Bank
ISU Graduate, BS Finance 1997

The following information was compiled by Chad Hancock, a 1997 Illinois State University Finance graduate. Chad double-majored in Finance and Marketing, and was selected as the Outstanding Senior by both programs in 1997! The Dunlap, Illinois native was also president of ISU's chapter of the Financial Management Association (FMA) student organization, and he participated in the hands-on investment management course, FIL 370 Educational Investment Fund, during his final semester at Illinois State. He holds an MBA from DePaul University in Chicago, and is a Chartered Financial Analyst (CFA ®).

Chad has worked as a real estate analyst and private equity analyst at Bank One in Chicago, and as a fixed-income portfolio manager for Caterpillar Investment Management, Ltd. in Peoria. He offered the following insights during an October 3, 2005 presentation to the FMA chapter at Illinois State.

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If you are planning for a career in Finance, you are likely to be considering a professional position in one or more of the financial fields described below. Based on my experiences and observations, and on available salary survey figures, I would list needed skills and reasonable pay expectations as shown. Always remember that every situation is different; for example, compensation can vary based on size of the company, cost of living and other aspects of geographic location, and the availability of extra benefits such as educational reimbursement.

Investment Management
Typical jobs are in the areas of portfolio management, security analysis in mutual funds or other investment organizations, and investment advisory services.

Key Skill Areas Requirement

People skills: Medium
Sales skills: Medium
Communication skills: High
Analytical skills: Very High
Ability to synthesize: Very High
Creative ability: Medium
Initiative: Medium
Work hours: 40-75/week

Approximate Annual Salary Levels (Based on 2004 Survey)

Entry Level: $40,000
After 3 years: $55,000
After MBA/CFA: $75,000 – $100,000
After 7-10 yrs: $100,000 – $300,000
After 10+ yrs: $150,000+

Some Points to Note on Investment Management Careers

• Entry level positions are difficult to obtain in investment management; most people enter the industry after holding other jobs and completing MBA degrees.
• Bank trust departments, state and local pension funds, and insurance companies sometimes offer the easiest route into the industry. Get your foot in the door at one of these institutions in any way possible, for example by hiring in as a staff accountant. Then develop a good track record, make contacts, and build your educational credentials.

Education is key to advancement in the investment management industry:

• Must complete an MBA degree.
• Must obtain the CFA charter.
• Must be willing to continue to learn and adapt as new financial products are introduced to the marketplace.

Commercial Banking
Typical jobs are in the areas of credit analysis, trust operations, commercial or consumer lending, and mortgage banking.

Key Skill Areas Requirement

People skills: High
Sales skills: High
Communication skills: High
Analytical skills: Medium
Ability to synthesize: Medium
Creative ability: Medium
Initiative: Medium
Work hours: 40-50/week

Approximate Annual Salary Levels (Based on 2004 Survey)

Entry Level: $35,000
After 3 years: $42,000
After 5 – 7 years: $65,000
After 10+ years: $80,000 – $200,000

Corporate Finance
Typical jobs are in the areas of credit analysis, cash management, treasury management, and employee benefits management.

Key Skill Areas Requirement

People skills: Medium
Sales skills: Low
Communication skills: Medium
Analytical skills: High
Ability to synthesize: High
Creative ability: Medium
Initiative: Medium
Work hours: 35-50/week

Approximate Annual Salary Levels (Based on 2004 Survey)

Entry Level: $42,000
After 3 years: $50,000
After completing MBA: $65,000
After 7 – 10 years: $80,000
After 10+ years: $100,000 – $200,000+

Financial Planning
Typical jobs are in the areas of retail brokerage and fee-based financial planning.

Key Skill Areas Requirement

People skills: High
Sales skills: High
Communication skills: High
Analytical skills: Medium
Ability to synthesize: High
Creative ability: Medium
Initiative: Medium
Work hours: 30-70/week

Approximate Annual Salary Levels (Based on 2004 Survey)

Entry Level: $25,000
After 3 years: $40,000
After 5 – 7 years: $80,000K
After 10+ years: $150,000+

Investment Banking
Typical jobs are in the areas of corporate finance underwriting, derivatives, mergers and acquisitions, trading, structured finance, and research on fixed income or equity investments.

Key Skill Areas Requirement

People skills: High
Sales skills: Medium
Communication skills: High
Analytical skills: High
Ability to synthesize: High
Creative ability: High
Initiative: High
Work hours: 60-100/week

Approximate Annual Salary Levels (Based on 2004 Survey)

Entry Level: $50,000
After 3 years: $75,000
After completing MBA: $110,000
After 7 – 10 years: $150,000 – $400,000
After 10+ years: $300,000+

Real Estate
Typical jobs are in the areas of commercial or residential sales, property management, real estate appraisal, and construction/development.

Key Skill Areas Requirement

People skills: High
Sales skills: Very High
Communication skills: High
Analytical skills: Medium
Ability to synthesize: Low
Creative ability: Medium
Initiative: High
Work hours: 30-60/week

Because the real estate field is so diverse, with people working in a wide range of activities and with commitments that run from part-time to long full-time hours, it is difficult to provide generalized salary information. Note also that people with training and interest in Real Estate sometimes pursue careers in real estate lending (mortgage banking), as discussed under Commercial Banking above.