Finance is the art of throwing money around at the right times to make the world spin smoothly. It’s no wonder that some of the highest-paying jobs for MBAs are in finance.
Here’s a look at the top eight highest-paying jobs in finance. These roles require a degree in business or finance and a keen eye for detail.
Investment Banking Managing Director
It takes a lot of time and skill to reach this level. It’s the pinnacle of investment banking and it pays well – millions of dollars in a good year. However, it’s also extremely demanding with a long list of responsibilities. This role is highly competitive and it requires leadership skills that help you surpass targets. Your resume should highlight specific instances when your leadership led to team success and deal closures.
Another finance job that pays well is a senior vice president, often abbreviated to SVP. This position is the second highest rank in investment banking and it comes with a big raise. The job is primarily focused on prospecting and allocating new business. You need to have strong relationships and contacts with private equity firms, middle market businesses, and referral sources.
Financial advisers are another of the top 8 highest paying jobs in finance, a career that involves helping people plan for significant life events and make smart investments. These professionals need excellent communication skills and technical training in finance, such as financial modeling.
Hedge Fund Manager
Hedge funds are investment pools that use various strategies to maximize returns with lower risks. These funds invest in private markets and can make both long and short investments. They may buy and sell equity, derivative products, commodities, bonds and currencies. They can also engage in arbitrage, trading based on price differentials between a stock or bond’s current value and its expected value.
Hedge fund managers typically share in the profits of their funds, giving them a strong incentive to seek out lucrative investments. They also work closely with a team of financial professionals including traders and accountants.
Traders for hedge funds and other investment firms focus on obtaining the best possible prices for securities when conducting trades on behalf of clients. They use advanced software programs to analyze multiple investment metrics. Many of these financial analysts have advanced degrees in statistics and mathematics. They are in high demand and can command six-figure salaries. In addition, a number of other finance jobs exist for those who want to help businesses diversify their assets and manage their financial risks.
Private Equity Partner
It’s not uncommon for a private equity partner to make well into the seven figures, especially at firms like Apollo Global Management. However, it’s not a straightforward path to the role. Most people start as an associate and work their way up.
As an associate, you’re likely to do financial modeling, research into portfolio company profiles, and fundraising. The responsibilities shift when you become a senior associate and move closer to the VP-level, as you take on more of a managerial role.
To become a senior associate, you need several years of experience, including time as a PE analyst and a top MBA program. Some Senior Associates come from other roles, such as investment banking. It’s also possible to break into the role from outside of finance, but that is extremely rare. To be a partner, you need to have an exceptional track record. In addition, you need to invest a large portion of your own wealth into the firm. This can be nerve-wracking, as you’re not guaranteed to earn back your initial investment.
Chief Financial Officer
As a part of the C-suite, a chief financial officer has a lot at stake. This top job in finance involves budgeting, accounting, and treasury management. The minimum qualifications include a bachelor’s degree in economics, business administration, or finance. Professional certifications in accounting, auditing, and financial management may also help.
A chief financial officer will make data-driven decisions and prepare financial forecasts for the company. They’ll present their research to financial stakeholders and executives. They’ll also be expected to supervise the work of a finance department’s employees.
The highest paying jobs in finance are those that offer the most lucrative salaries and the best opportunities for career advancement. As such, they’re also among the most competitive. The good news is that with hard work and dedication, you can secure one of the most coveted positions in the industry. Just be sure to start near the bottom and work your way up, if you want to land a job in the finance industry that will set you up for a long-term career success.
Finance Director
A finance director oversees all monetary functions of a business. They are responsible for the financial management of a company and review information to direct company growth and goals. They collaborate with all stakeholders, including regulators, external auditors, shareholders, and bankers. They also research the market and analyze data to create projections that help the finance team develop comprehensive budgets.
A finance director is one of the highest paying jobs in the industry, but they must have a high level of both technical and interpersonal skills. The job requires extensive knowledge of financial reporting, accounting, and tax. They must also be comfortable with the use of ‘what-if’ modelling to predict how a business would respond to various scenarios.
If you’re interested in the world of finance, you can start your career with a bachelor’s degree in finance or business. A finance degree can open doors to many different careers in the field, including investment banking, hedge fund management, and CFO roles. These positions offer lucrative salary packages and excellent benefits.
Portfolio Manager
A portfolio manager is responsible for constructing and overseeing a selection of investments that meet the long-term financial goals and risk tolerance of a client, company, or institution. This career track requires extensive research, analytical skills, and the ability to remain resilient and disciplined under challenging market conditions. Individuals with a passion for idea generation and exceptional research skills are often attracted to this career path. The CFA program offers a valuable credential for those seeking to become a portfolio manager.
Discretionary managers construct portfolios for clients that align with their unique investment goals and preferences. This customisation provides the opportunity to beat the market and generate superior returns.
Non-discretionary managers provide investment advice and recommendations to clients, but the final decision-making authority rests with the client. This allows for a greater level of client control and may limit potential losses caused by emotional trading decisions such as fear, greed, or overconfidence.
Risk Manager
A risk manager leads the identification, communication, measurement and management of company-wide risk exposure. This role also manages insurance procurement and develops risk management and compliance policies. Risk managers should have a bachelor’s degree in a field like business or insurance, and senior roles may require at least five years of experience.
A career in risk management requires a thorough understanding of corporate law and industry-relevant regulations. This is especially important for global corporations, where a misstep could have ramifications that extend far beyond the boundaries of a single country or continent. Risk and compliance professionals must also be able to anticipate the potential impact of new regulations and communicate these changes with other leaders within their organization.
In addition, risk management jobs involve a broad knowledge of consumer buying demands and market trends. This enables these professionals to develop proactive plans for dealing with adverse events and advise leadership on the best ways to connect with consumers. Finally, they must be able to translate the ramifications of financial markets and international politics into practical advice for executives at large multinational firms.
Quantitative Analyst
There are many rewarding career paths for individuals with a love of math and finance. However, these positions often come with long hours and stiff competition. In addition, these careers often require a lot of self-teaching and research. To maximize earning potential, aspiring financial professionals can consider seeking out freelance or contract work as a way to gain experience and familiarize themselves with the industry.
In addition to traditional finance roles, quantitative analysts can also find jobs in other industries that rely on complex data analysis, such as insurance and technology. These professionals must be skilled at advanced mathematics and computer programming, and may be required to develop or update complex trading algorithms.
A front office quant will work with traders to use quantitative models to backtest, analyze, and optimize trading strategies. These analysts are primarily responsible for building complicated trading algorithms and ensuring that they effectively give meaningful information to users.