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Developer vs Quant vs IT

Joined
1/15/14
Messages
4
Points
11
Hi,
I'm currently working for a large internet company and was recently contacted by some headhunter and started interviewing for Core Operations Engineer position at large HFT company.

I'm wondering does anyone have any insight into compensation of Developers and Quants in HFT industry, both relative to each other and in absolute terms.

I currently make around 450K total and it seems this wasn't a problem when I mentioned it during the interview but I need some more datapoints if we get into real negotiations (i.e. if they just over 10-20% increase over my current comp, that wouldn't really be interesting to me at all).
 
I am just a young, unknowing student, but I imagine that they would give you a little salary boost and offer you a percentage of the funds profits. So, if they are managing a lot of money and you give them the tools to make a 30% return, even a small percentage of the profits could be a lot more money than you are making. Its a bit of a gamble, but if things go well there is a lot of money to go around.
 
$550 K seems to be quite a high asking salary without any previous experience in HFT / Algotrading, specially since you are asking it as a guaranteed salary and not as an expected bonus (which may be zero).
Normally for fresh PhD / MS, they start at around $120 K base with expected bonus of $50 K.
You may be having some unique skills which they need.
 
$550 K seems to be quite a high asking salary without any previous experience in HFT / Algotrading, specially since you are asking it as a guaranteed salary and not as an expected bonus (which may be zero).
Normally for fresh PhD / MS, they start at around $120 K base with expected bonus of $50 K.
You may be having some unique skills which they need.

I was talking about total compensation, not just base - I'm not really sure how this is usually split.
 
The article doesn't mention base/bonus split though (it mentions "salary" as 400K, but it is not clear whether they were talking about base or total package).
 
The article doesn't mention base/bonus split though (it mentions "salary" as 400K, but it is not clear whether they were talking about base or total package).
Base should be probably in the 150-250 range. The rest is in bonus.
 
Well I have about 30 datapoints for fresh Computer Science PhDs from Carnegie Mellon University. In the tech firms like Google / Facebook / Microsoft / HP / IBM, they are getting starting package between $160 K - $200 K. In the Finance sector, they are getting starting packages of $120 K - $140 K base + $50 K bonus.

I also have about 40 datapoints for fresh Finance PhDs from the Business Schools. They are starting at around $250 K for academic positions and between $250 K - $400 K on Wall Street.

You should think very carefully before you leave a $450 K job and also leave about $700 K in RSUs on the table. It is possible that you may get a $2 Million bonus. It is also possible that you may get a $0 bonus. It all depends on your skill set and how much they need you. Finance sector is expert at using people and then leaving them on the pavement.
 
Honestly, I think $450K is pretty good money anywhere in finance. You may be able to do better, but you have to be pretty far out on the tail, and this is all before you factor in the extra risk of HFT vs tech. I think a CIO at a an HFT firm would make a lot more than that; I doubt the average rank and file developer earns that much.

But I'm assuming you're not relocating. One thing to consider is the fact that Chicago is cheaper than California. $600K gets you a nice house in Glencoe or a penthouse in an elevator/doorman/pool building; $1.5M gets you a 4000 square foot home with Lake Michigan frontage a bit further north (Highland Park, Lake Forest, Lake Bluff). All of these suburbs have school districts that routinely rank in the top 100-200 nationally on test scores (Highland Park High School; Lake Forest High School; New Trier High School) and college placement.

So while I can't add as much on the comp front, I can say that a dollar stretches pretty far in Chicago. A guy earning $450K/year living in NYC or California is middle-class (actually, lower middle-class in Manhattan); a guy earning $450K/year in Chicago is rich.
 
You should think very carefully before you leave a $450 K job and also leave about $700 K in RSUs on the table. It is possible that you may get a $2 Million bonus. It is also possible that you may get a $0 bonus. It all depends on your skill set and how much they need you. Employers are experts at using people and then leaving them on the pavement.
Fixed that for you.
 
Fixed that for you.

I've heard that companies like Samsung and LG pay foreign talents 2~3 times the salary of native Korean talents, and try to suck all the skill/knowledge out of the foreign workers and just dump them when their contract is over. I don't think many employers really give a crap about their employees.
 
Thanks for answers TraderJoe and Gollini, it helps a lot.
Do you have any knowledge about more senior positions in HFT space (i.e. CIO/CTO, or one level below)?

Thanks
 
Afraid I don't. Just a friendly desk strategist with a few years of experience, but only for a bank in NYC. I went to school in IL and have a lot of ties to Chicago, though (including programmers who work for HFT firms).

If it's Jump, Citadel, or GETCO, (or DE Shaw or AQR out east) they can probably afford you and the HR lady was genuine about not flinching. If it's a smaller firm with less net revenue per head, this could be tougher, although there are a lot of great shops out there nobody has ever heard of.
 
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