The players in sales
Published: Mar 10, 2009
Sales Assistant
This position is most often a dead-end job. It is extremely difficult to move into institutional sales without an MBA, so sales assistants take on a primarily clerical role on the desk. Handling the phones, administrative duties, message taking, letter writing - there's nothing glamorous for the assistants.
Associates
The newly hired MBA is called an associate, or sales associate. Like analogous associates in other investment banking departments, a sales associate spends a year or so in the role learning the ropes and establishing himself. Associates typically spend one to two months rotating through various desks and ensuring a solid fit between the desk and the new associate. Once the rotations end, the associate is placed on a desk and the business of building client relationships begins.
As of publication, most sales associates out of business school pull in the standard package on Wall Street: $80,000 base plus bonuses of $25,000 in the first six months. Pay escalation in the first year depends on the bonus, which often ranges from 50 percent of salary to 90 percent of salary. Beyond that, compensation packages depend on the firm - most firms pay based on commissions generated for the firm.
Salesperson
The associate moves into a full-fledged salesperson role extremely quickly. Within a few months on a desk, the associate begins to handle "B" accounts and gradually manages them exclusively. A salesperson's ultimate goal is the account at a huge money manager, such as Fidelity or Putnam, that trades in huge volumes on a daily basis. Therefore, a salesperson slowly moves up the account chain, yielding B accounts to younger salespeople and taking on bigger and better "A" accounts. Good salespeople make anywhere from $250,000 to beyond $1 million per year in total compensation.
Salespeople usually focus by region. For example, an institutional equity salesperson will cover all of the buy-side firms in one small region of the country like New England, San Francisco or Chicago. Many salespeople cover New York, as the sheer number of money managers in the City makes for a tremendous volume of work. Salespeople work on specific desks on the trading floor next to traders. Because so much of their work overlaps, sales and trading truly go hand-in-hand.