Definition
The term “CFA Salary” refers to the amount of money earned by a professional who has obtained a Chartered Financial Analyst (CFA) designation. The salary can vary greatly depending on the individual’s experience, job role, and geographical location. It serves as a benchmark for potential income for those pursuing a career in finance with a CFA designation.
Key Takeaways
- The CFA Salary refers to the income earned by a Chartered Financial Analyst. It varies based on factors such as geography, work experience, role, and industry.
- On average, a CFA charterholder’s salary tends to be higher than their non-CFA counterparts. This can be attributed to their high level of expertise and the rigorous training they undergo.
- Notably, the CFA designation is globally recognized in the finance industry. This often leads to opportunities for better paying roles and career advancement, impacting the overall salary of a CFA professional.
Importance
The finance term “CFA Salary” is important as it refers to the earning potential of a finance professional who has successfully completed the Chartered Financial Analyst (CFA) credential.
This globally recognized and highly respected designation often commands a premium in salary compared to peers without the certification.
Knowledge of the expected salary range for a CFA holder is vital for job seekers, prospective CFA candidates, employers, and HR professionals alike.
It gives an indication of the financial rewards of such qualification, helps companies budget accurately for such roles, and can also be a motivating factor for those aiming to attain this esteemed certification.
Explanation
The term ‘CFA Salary’ refers to the average income or compensation earned by individuals who have successfully attained the Chartered Financial Analyst (CFA) designation. The CFA designation is a globally recognized, graduate-level investment credential issued by the CFA Institute.
It demonstrates a strong understanding of advanced investment analysis and real-world portfolio management skills. The CFA designation is highly respected in the finance industry, and many finance professionals aim to earn it to advance their careers or to gain credibility with clients and colleagues.
The purpose of the ‘CFA Salary’ concept is to provide a benchmark or indicator of the financial rewards that a CFA Charterholder can expect. It is used as a tool for finance professionals to determine if the CFA certification is worth their investment in terms of time, money and effort.
The salary can greatly vary depending on factors such as the individual’s job role, years of experience, employer, geographic location, and other credentials possess. In general, CFA Charterholders are known to earn higher salaries compared to those who do not hold the designation due to the high level of expertise and knowledge required to earn the certification.
Examples of CFA Salary
Goldman Sachs: If you work as an equity analyst in a major financial institution like Goldman Sachs, having a CFA charter can increase your median salary. As per a 2020 report by Payscale, a CFA holder working at Goldman Sachs can earn an average salary of around $89,000 per year.
BlackRock: At BlackRock, one of the largest investment management companies globally, a portfolio manager who has earned a CFA designation can make a median salary of approximately $124,165 annually, according to a 2018 report by Glassdoor.
J.P. Morgan: According to indeed.com, a CFA charterholder working as a Financial Analyst at J.P. Morgan can earn an average total compensation of around $85,000 per year.Note: The specific salary ranges greatly depending on geographical location, years of experience, level of responsibility, and the specific role one plays in the organization.
CFA Salary FAQ
1. What is the average salary for a CFA in the United States?
The average pay for Chartered Financial Analysts (CFA) in the United States is around $85,000 annually. However, this can vary depending on a range of factors including location, years of experience, the company, and the specific role.
2. How much can a CFA earn at the start of their career?
Entry-level CFAs typically earn between $50,000 and $60,000 per year, while those with one to three years of experience can expect to make between $60,000 and $75,000.
3. Does obtaining a CFA certification significantly increase salary?
Yes, obtaining a CFA certification generally results in a higher salary compared to those in similar roles without a CFA. This is due to the increased knowledge and skills acquired through the certification process.
4. What is the salary expectation for CFAs in senior roles?
Senior CFAs, especially those in management roles, can expect significantly higher average salaries often above $150,000 per year. These figures can be even higher in larger metropolitan areas or at larger companies.
5. Does the salary of a CFA increase steadily over time?
Yes, the salary of a CFA is generally expected to increase over time. This is due to increased experience, further education, performance, and promotions within the career. However, like all jobs, this can vary greatly depending on a variety of factors.
Related Entrepreneurship Terms
- CFA Exam Fees
- CFA Salary Range
- Job Roles for CFA Holders
- CFA Salary Comparison by Location
- Salary Upscale after CFA Certification
Sources for More Information
- PayScale: This website shares salary data from Certified Financial Analysts around the world and offers a comprehensive view of what to expect in this field.
- Glassdoor: This platform not only provides salary data but also offers reviews from professionals about their workplaces, hence giving an insight into the working environment and salary expectations.
- Indeed: Indeed showcases job listings, including roles for CFAs, with included salary information and employee reviews of companies.
- The Bureau of Labor Statistics: The BLS is a governmental body that has updated data regarding salaries for different professions, including CFAs, and information about changes and trends in the finance job market.
