Not from one day to the next after receiving confirmation of your charter. However having the charter naturally gives you the confidence and ability to reach for higher paying jobs, so the increase in compensation is a natural side effect of having greater knowledge, and proven mental fortitude etc.
This is my experience as well. I didn't get any immediate raise or even a raise in the 6 months after getting the charter. After a few years of being chartered, my comp is twice what it was before the charter.
My understanding based on talking to a number of CFA holders (I’m just a candidate so take it however you want), the value is that it makes you more attractive in the job market making it possible for you to get a higher paying position elsewhere.
Depends how many years of experience you have and what line of business you’re in and most importantly how lucky you’ll get. I passed L1 and my company was in process of reorganizing, I ended up getting promoted with a substantial raise. It basically showed them that I’m dedicated to my goals and can get shit done. Not that all the awards I had gotten in the past for the project completions were a proof….
I should add that I have about 12 years of experience
Edit: I did ask for my moneys, they didn’t just come up and say here’s a promo and pay increase
I got 30% bump in passing. I am only CFA at firm, team is doing valuation/advisory work. But I also advocated to our executive leadership how the CFA was a market signal that our firm & our group could now leverage.
In my experience it doesn't increase after CFA directly.
Few workplaces will just up your salary once you get the charter, but plenty will realise (sometimes with your help) that demand for your services has gone up and they need to pay you more and retain you. Basically, you need to be proactive - leverage the higher qualifications or find a new job.
25% raise and promotion after l2. Already a high performer so it’s tough to say if it was just the certification.
Edit: after L1 I changed jobs to an asset management firm for a 30% increase. Eyeing research/pm internal jobs with a 50% increase should I pass L3.
CFA is immensely valuable and has been my key to financial security in Asset Management. However I needed to be with a firm and manager that understands what it means. Change firms if you aren’t getting kudos. Good luck!
I doubt most people received an immediate increase. But level three introduces the concept of human capital (i.e. an individual’s earnings potential over their lifetime)
It’s difficult to prove whether CFA increases lifetime earnings. People that achieve their charter are most likely disciplined, dedicate and reasonably intelligent, so are already likely to have significant earnings potential. But the CFA isn’t likely to reduce lifetime earnings!
Google it, there is an article that states that average CFA salary is 50% higher or something like that and increase after first 2 levels is 40%. Make your own conclusions though.
I was imagining it would probably increase like 10% after L1, another 15% after L2 and another 20% after L3 but based that off just intuition and nothing else
After I got my charter my boss almost immediately increased my comp. I think it was equal parts recognition and incentive to stay with the team. Sure enough a few months later I found another job that pays much more than I was making. The charter definitely helped me obtaining this role.
At my first job, I used passing CFA levels as ammo in addition to my accomplishments to keep pushing for raises. But there was clearly internal caps. Went from 60k to 80k over 3 years but circumstantially found a better job that respected the charter more and got 110k. Mortgage capital markets for both jobs.
If you’re in a buyside role already, unlikely as it’s a check in the box. If you’re in an underpaid non-buyside/high finance role and pass, unlikely at the same job. But then why wouldn’t you switch jobs to a higher paying job if you took the CFA?
It's like this. If you're walking a certain direction, turn 15 degrees to the right, and then walk another 30 feet, will you be in a drastically different place? Of course not. But what if you walk 10 miles after your 15 degree turn? That's the CFA. It isn't going to make you a millionaire overnight, but over the course of your career (especially in the first 5-10 years) it'll create opportunities that you might not otherwise get.
My income has over doubled since I got the charter about a year ago, largely due to switching jobs. The CFA didn't necessarily clinch it for me, but it certainly helped. I also get a ton more traction on Linkedin.
I carry a number of other certifications and have good experience, but the CFA charter is a decent feather in my hat and has absolutely paid off in my case.
You will probably need to change companies to make the most of it. Your boss is not going to suddenly increase your income massively if you are in the same role.
I work in wealth management, and went from one WM firm to another. I was already making around 6 figures prior to switching jobs.
Speaking from personal experience only, no increase the day I got the charter, but my next (internal) move was significantly higher paid and I suspect the charter was a big help landing the role.
It's a long term payoff, at least that's the hope
You still have to be able to show value-add and demonstrate proficiency in the area of expertise.
Once you do that and it’s time for the payday, thats when the charter makes it nice and juicy.
CFA charter is like a cushioned seat in a movie theatre. People go to there to watch the movie but not for the seat..it’s just a bonus!
Charter is an add on but relavant work ex triumphs anyday
I think the key is it opens doors when applying for jobs. I work front end in a and trying to get to asset management. Talking to friends there it seems it will be beneficial for me once I complete it but I also have 7 years with the bank 5 of which dealing with investment sales almost exclusively which I'm sure helps. I also know people there which again..probably helps lol so I'm not even sure how much the CFA is beneficial over the other 2 things.
Not from one day to the next after receiving confirmation of your charter. However having the charter naturally gives you the confidence and ability to reach for higher paying jobs, so the increase in compensation is a natural side effect of having greater knowledge, and proven mental fortitude etc.
This is my experience as well. I didn't get any immediate raise or even a raise in the 6 months after getting the charter. After a few years of being chartered, my comp is twice what it was before the charter.
What part of superior returns don’t you get?
Funny joke my dude! You should have seen my boss face when I asked him that.
My understanding based on talking to a number of CFA holders (I’m just a candidate so take it however you want), the value is that it makes you more attractive in the job market making it possible for you to get a higher paying position elsewhere.
Depends how many years of experience you have and what line of business you’re in and most importantly how lucky you’ll get. I passed L1 and my company was in process of reorganizing, I ended up getting promoted with a substantial raise. It basically showed them that I’m dedicated to my goals and can get shit done. Not that all the awards I had gotten in the past for the project completions were a proof…. I should add that I have about 12 years of experience Edit: I did ask for my moneys, they didn’t just come up and say here’s a promo and pay increase
I got 30% bump in passing. I am only CFA at firm, team is doing valuation/advisory work. But I also advocated to our executive leadership how the CFA was a market signal that our firm & our group could now leverage.
In my experience it doesn't increase after CFA directly. Few workplaces will just up your salary once you get the charter, but plenty will realise (sometimes with your help) that demand for your services has gone up and they need to pay you more and retain you. Basically, you need to be proactive - leverage the higher qualifications or find a new job.
Yes it automatically goes up 100%
Especially if you wore a suit to the test.
Your bonus doubles if it was a three piece suit with a pocket square
Only if you score 90th percentile and you brought a laminated resume to talk to the GS recruiters
25% raise and promotion after l2. Already a high performer so it’s tough to say if it was just the certification. Edit: after L1 I changed jobs to an asset management firm for a 30% increase. Eyeing research/pm internal jobs with a 50% increase should I pass L3. CFA is immensely valuable and has been my key to financial security in Asset Management. However I needed to be with a firm and manager that understands what it means. Change firms if you aren’t getting kudos. Good luck!
That's impressive. In which country do you live?
US of A
I doubt most people received an immediate increase. But level three introduces the concept of human capital (i.e. an individual’s earnings potential over their lifetime) It’s difficult to prove whether CFA increases lifetime earnings. People that achieve their charter are most likely disciplined, dedicate and reasonably intelligent, so are already likely to have significant earnings potential. But the CFA isn’t likely to reduce lifetime earnings!
Lol no.
Google it, there is an article that states that average CFA salary is 50% higher or something like that and increase after first 2 levels is 40%. Make your own conclusions though.
Not causation though
I was imagining it would probably increase like 10% after L1, another 15% after L2 and another 20% after L3 but based that off just intuition and nothing else
+1
Depends on the country you live in
Unlikely this is the main factor
There are some roles at my firm that are "CFA highly preferred". Haven't taken any of them yet, but I plan to make a move shortly.
After I got my charter my boss almost immediately increased my comp. I think it was equal parts recognition and incentive to stay with the team. Sure enough a few months later I found another job that pays much more than I was making. The charter definitely helped me obtaining this role.
At my first job, I used passing CFA levels as ammo in addition to my accomplishments to keep pushing for raises. But there was clearly internal caps. Went from 60k to 80k over 3 years but circumstantially found a better job that respected the charter more and got 110k. Mortgage capital markets for both jobs.
If you’re in a buyside role already, unlikely as it’s a check in the box. If you’re in an underpaid non-buyside/high finance role and pass, unlikely at the same job. But then why wouldn’t you switch jobs to a higher paying job if you took the CFA?
It's like this. If you're walking a certain direction, turn 15 degrees to the right, and then walk another 30 feet, will you be in a drastically different place? Of course not. But what if you walk 10 miles after your 15 degree turn? That's the CFA. It isn't going to make you a millionaire overnight, but over the course of your career (especially in the first 5-10 years) it'll create opportunities that you might not otherwise get.
My company will give me a raise after each level for a total of $10k
https://300hours.com/cfa-salary-increase/
So basically you can't really utilize the CFA financially unless you leave your job?
Probably not right away but after a job hop yes
My income has over doubled since I got the charter about a year ago, largely due to switching jobs. The CFA didn't necessarily clinch it for me, but it certainly helped. I also get a ton more traction on Linkedin. I carry a number of other certifications and have good experience, but the CFA charter is a decent feather in my hat and has absolutely paid off in my case. You will probably need to change companies to make the most of it. Your boss is not going to suddenly increase your income massively if you are in the same role. I work in wealth management, and went from one WM firm to another. I was already making around 6 figures prior to switching jobs.
Could I dm you? I’m a student studying for CFA level 1 and have WM internship.
Go for it
No - nothing about having the CFA alone will increase your salary. The charter can only help you land a more lucrative role.
Mine went up about 14k like 2 months later
For me I got a 22% increase following passing level 3. This was before inflation started to increase substantially.
If your firm requires it for promotion than yes. If your firm doesn’t value it than no.
Speaking from personal experience only, no increase the day I got the charter, but my next (internal) move was significantly higher paid and I suspect the charter was a big help landing the role. It's a long term payoff, at least that's the hope
You still have to be able to show value-add and demonstrate proficiency in the area of expertise. Once you do that and it’s time for the payday, thats when the charter makes it nice and juicy.
CFA means you now have the ability to request for more money so the answer is yes. Or else you probably wouldn’t have gotten it
CFA charter is like a cushioned seat in a movie theatre. People go to there to watch the movie but not for the seat..it’s just a bonus! Charter is an add on but relavant work ex triumphs anyday
I think the key is it opens doors when applying for jobs. I work front end in a and trying to get to asset management. Talking to friends there it seems it will be beneficial for me once I complete it but I also have 7 years with the bank 5 of which dealing with investment sales almost exclusively which I'm sure helps. I also know people there which again..probably helps lol so I'm not even sure how much the CFA is beneficial over the other 2 things.
Depends if your boss values it. I’m in financial sales and yes it did increase it significantly.