CFA salary in the US based on job titles

CFA is one of the most profitable professional fields in the world

A CFA charter holder is responsible for acting as an investment analyst and assisting businesses and clients in making better investment decisions to improve their financial position. The average base CFA salary in the US is $126,000 USD, with total compensation of around $177,000 USD. CFA Professionals have a broad range of opportunities in the finance industry, including trading, asset management, and investment portfolio management.

CFA Salary in the United States Based on Job Title

The job type and function determine the pay scale for various designations.

Your base salary is affected by the type of work you do. Following the acquisition of a CFA charter, the following are some of the most sought-after job titles-

Portfolio manager

Portfolio management is not a beginner’s job. People with a few years of experience can start at the associate level. A portfolio manager’s responsibilities include directing investment professionals. Private wealth management companies also hire them to work with their clients on an individual basis.

After completing the CFA program, approximately 22% of graduates go into portfolio management. CFA charter holders can work in management positions like the senior portfolio manager, leading to a career as an executive like a chief investment officer.

According to the CFA institute compensation study, the global-total compensation for portfolio managers is 177,000 USD, with a base salary of 126,000 USD.

Research analysts

Research analysts in entry-level positions play an important role in business valuation and investment management. Research analysts can work in fields such as investment banking, hedge funds, and data science, among others, in a variety of organizations.

Around 15% of CFA students go on to become research analysts. In the United States, the total compensation CFA salary for this role is 140,000 USD, with a base salary of 100,000 USD.

Chief executives

Around 7% of CFA charter holders become CEOs in positions such as chief investment officer (CIO) and chief financial officer (CFO). CIOs and CFOs are responsible for developing investment strategies, managing investment teams, and making risk management decisions.

The average total pay is $240,000 USD.

CIOs earn an average base salary of 184,000 USD, while a chief financial officer’s CFA salary In the US is 410,000 USD.

Corporate financial analysts

Only about 5% of CFAs become corporate financial analysts. A bachelor’s degree in finance or an MBA is required for entry-level Financial Analysts. The career path can lead to junior financial analyst and senior financial analyst positions. Professional certification is required for advancement, such as the CFA exam. Financial analysts earn an average total compensation of $81,930 USD.

Financial advisors

Approximately 5% of finance professionals provide financial services such as investment advice and financial management. The median base salary for financial advisors is 61,484 USD.

Risk manager

Risk managers play an important role in protecting businesses from financial, insurance, and credit risk. The average risk manager’s CFA Salary in the United States is 129,000 USD (total compensation), with a starting salary of 105,000 USD.

Relationship manager

Relationship managers are essential to successfully managing business relationships between entities, clients, and partners. Relationship managers make up about 5% of CFA charter holders. The average annual salary with a bonus is around 120,000 USD.

Job opportunities and CFA salary in the United States following the three series exam

The CFA Institute administers the three CFA series exams, which assess the candidate’s investment management skills. The candidate must pass all three levels in sequential order. These three levels of CFA exams each have their own set of qualifications that allow you to work in specific positions like the ones listed below-

Level 1

• Assistant Portfolio Manager
• Equity Research Analyst
• Asset Manager
• Junior Financial Analyst
• Risk Consultant
• Associate Analyst

Level 1 salaries typically range between 43,218 USD and 78,374 USD.

Level 2

• Equity Research Associate/Analyst
• Rating Analyst in Rating Agency
• Risk Analyst
• Corporate Strategist
• Financial Planning Analyst (FPA)

Candidates who have passed the CFA level 2 exam can expect to earn between 43,364 USD and 86,300 USD on average.

Level 3

• Senior portfolio manager
• Corporate financial analyst
• Chief financial officer
• Chief investment officer

Individuals who pass the Level 3 CFA exam earn an average salary ranging from 67,786 USD to 217,242 USD.

Key takeaways

• A CFA is a globally renowned professional designation from the CFA Institute. CFAs can get high-income jobs that assess financial analysts’ competence and integrity.
• The average base CFA salary in the US is $126,000 USD, with total compensation of around $177,000 USD. CFA Professionals have various job opportunities in the finance industry, including trading, asset management, and investment portfolio management.
• The CFA salary depends on different job positions. Portfolio manager, research analyst, relationship manager, and risk manager are some of the high-income CFA job positions.

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FAQs

Q1. Is CFA designation valuable in the USA?

Ans- The CFA designation is highly valued among candidates for senior roles such as risk, investment, and portfolio managers.

Q2. Who earns more CFAs or MBA graduates?

Ans- A CFA charter holder with 0-5 years of experience can expect to earn $72,900 on average. A business school graduate with 0-5 years of experience can expect to earn $57,700 on average.

Q3. Is CFA Level 1 difficult?

Ans- Candidates can improve their chances of passing the CFA exams by studying for more than 300 hours, using alternative prep materials, answering as many practice questions as possible, and developing a structured study plan.