Analyst promotion seems extremely unlikely as an associate. Is this normal?
For context, I'm at a large, tier 2 LO and have been an associate for 2 yrs. I was in IB for 2 yrs previously. I'm starting to cover stocks, have gotten only good feedback, and have good performance. Nonetheless, associate to analyst promotions are extremely rare at my firm, but we don't have a 2 yr program. Several other associates have been here for 5-10 yrs and are doing analyst-level work but are never looked to for promotions. When analysts leave, those spots are filled externally by people with comparable backgrounds to some of the associates. This dynamic is making promotion seem hopeless and is demotivating me.
A few questions. Is this normal at other shops? Is it worth staying around for experience or should I cut my losses? What kind of exit opps would someone with my background get? Is it common to get an analyst role elsewhere despite being an associate?
Based on the most helpful WSO content, it's not uncommon for promotion paths in finance, especially from associate to analyst roles, to vary significantly across firms. The dynamics you're experiencing, where internal promotions are rare and external hires often fill analyst positions, can indeed be found in other institutions. This can be particularly true in firms where there is no structured program for promotion or where the hierarchy is more rigid.
Regarding whether it's normal at other shops, it varies. Some firms have a clear path for internal promotion and heavily invest in developing their talent, while others may prefer to bring in external candidates for analyst roles due to specific expertise or experience they're looking for.
As for whether it's worth staying or moving on, it largely depends on your career goals and the opportunities for growth and learning in your current role. If you feel that you're gaining valuable experience and skills that could be leveraged for future opportunities, it might be worth staying. However, if the lack of promotion prospects is significantly impacting your motivation and career progression, exploring opportunities elsewhere could be beneficial.
Exit opportunities for someone with your background, having experience in both investment banking and equity research, could include roles in asset management, hedge funds, or other areas within the financial sector where your analytical skills and market knowledge are valued. Transitioning to an analyst role elsewhere is definitely possible, especially if you can demonstrate strong performance, sector expertise, and the ability to generate actionable investment insights.
In summary, while the promotion dynamics you're experiencing can be found in other firms, it's essential to assess your current situation based on your career aspirations, the skills you're developing, and the broader market for similar roles. Networking, both within and outside your current firm, and possibly seeking mentorship or advice from more senior colleagues or industry contacts, could also provide valuable insights and help inform your decision.
Sources: No raise from Analyst to Associate, is this normal?, Why are post-MBA associates so bad?, What is with these “Promotions” at Private shops?, MBA vs direct promotion, Unpopular opinion, but analyst to associate promote bankers are the worst to work for
Ignore my title. Yes, this is very common and I see it all the time. At my shop, we have a 3-5 year program, but will know if you're not getting promoted at year 3-3.5. Many associates ride it out until the 5 years are up. Personally, I'd jump ship as soon as I knew I was getting promoted. For me, it makes no sense to waste time at this firm, when I could be building my cache and reputation somewhere else.
Very common. At my shop less than 20% ever get promoted to analyst
at the largest managers this is less than 10% at most
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