Are you studying finance and want to know which careers pay the most? You’re in the right place. We’ll talk about the highest-paying jobs for finance majors. We’ll look at the average salaries and job duties for each role, whether it’s investment banking, financial analysis, or corporate finance. After reading, you’ll know about the well-paying opportunities in finance.

What Finance Majors Should Know About Job Salaries

People with a finance degree can earn different salaries based on their specific job. Job roles like investment bankers, hedge fund managers, and private equity associates usually have high salaries. The top-paying job for finance majors is often chief financial officer (CFO), with salaries ranging from six to seven figures. Roles like corporate controllers, risk managers, management consultants, actuaries, and real estate brokers also have good salaries.

The earnings can vary based on experience and location. Education level, certifications, job role, and the company’s size and success can all influence finance professionals’ salaries.

How Much Do Investment Bankers Make?

Investment bankers typically earn between $90,000 to $140,000 per year, depending on experience and location. This makes it one of the highest paying careers for individuals with a finance degree. Compared to other finance-related careers, such as financial analysts or financial managers, investment bankers generally earn a higher salary due to the high-pressure, long hours, and client-specific demands.

Factors that influence their salary include the firm’s size and prestige, the banker’s experience and expertise, deal success, and the economic climate. Bonuses and commissions can significantly increase an investment banker’s income, making it a financially rewarding career for those who thrive in a fast-paced, competitive environment.

What is the highest paying job with a finance degree?

Hedge Fund Manager Details

To become a hedge fund manager, individuals typically need an undergraduate degree in finance, economics, or a related field. They often pursue advanced degrees such as a Master of Business Administration or a Chartered Financial Analyst (CFA) designation.

Experience working in investment banking, private equity, or asset management is also commonly sought after.

Hedge fund managers generate investment ideas through various methods, such as conducting fundamental analysis, quantitative analysis, and macroeconomic forecasting. They manage risk in their portfolios by implementing hedging strategies, diversifying investments, and closely monitoring market trends.

Compensation for hedge fund managers typically consists of a management fee, usually around 2% of assets under management, and a performance fee, typically 20% of the profits generated. This compensation structure differs from other finance professionals, such as mutual fund managers or investment analysts, who often receive a fixed salary and bonus based on performance.

Private Equity Associate Basics

A Private Equity Associate has various responsibilities such as conducting industry research, financial modeling, due diligence, and monitoring investment portfolios. They also interact with clients and assist with investor relations.

To advance in this career, individuals need to gain more experience, take on greater responsibilities, and demonstrate strong investment performance.

A strong background in finance, accounting, or business, along with excellent analytical, communication, and interpersonal skills is typically required. A Bachelor’s degree is usually needed, while a Master’s degree in Business Administration or a Chartered Financial Analyst designation can be beneficial for career advancement.

Relevant work experience in investment banking, consulting, or corporate finance is also valuable for aspiring Private Equity Associates.

CFO Salary Expectations

The salary expectations for a Chief Financial Officer range from $119,000 to $362,000, according to the U.S. Bureau of Labor Statistics.

This makes the CFO one of the highest paying jobs with a finance degree.

When compared to other high-paying finance jobs, such as a financial manager or investment banker, a CFO’s salary is among the highest due to the level of responsibility and decision-making involved.

Factors that can impact a CFO’s salary expectations include the size and profitability of the company, the candidate’s level of experience and education, as well as the location of the company.

For example, a CFO working in a large, multinational corporation headquartered in a major metropolitan area would likely earn a higher salary than a CFO at a small, local business.

Similarly, industry type can impact a CFO’s salary, with those working in the technology and healthcare sectors typically earning more.

Annual Income for Corporate Controllers

Corporate controllers in the finance industry usually earn between $87,000 and $120,000 per year on average. This places them among the highest-paying jobs for individuals with a finance degree. Compared to other finance-related professions, they tend to have a higher annual income, often surpassing financial analysts, budget analysts, and actuaries.

However, their annual income can vary based on factors such as the size and financial health of the organization, geographic location, and industry. For instance, corporate controllers employed by large multinational corporations in urban areas may earn more than those working for smaller companies in rural areas. Also, economic and industry-specific conditions within a region can impact their annual income.

Risk Manager Salary Insights

Risk managers’ salary insights can be influenced by several factors:

1. Educational background: Those with advanced degrees or certifications like the Chartered Financial Analyst designation typically command higher salaries.
2. Professional certifications: Relevant certifications can increase earning potential.
3. Industry: The industry in which a risk manager works, such as insurance, banking, or healthcare, can affect salary levels.
4. Experience level: More experienced risk managers generally earn higher salaries.
5. Geographic region: Urban areas or financial hubs often offer higher earning potential compared to rural or less economically developed regions.

These insights provide a comprehensive understanding of the factors that contribute to the salary expectations for risk managers, enabling individuals pursuing a finance degree to make informed career decisions.

Earnings for Real Estate Brokers

Real estate brokers typically earn a median annual salary between $40,000 and $60,000. The amount depends on their level of experience and the region in which they work.

This places them within the mid-range of earnings when compared to other professions in the finance industry. Factors that can impact their earnings potential include the broker’s commission split with the brokerage, the current state of the real estate market, and their success in generating leads and closing deals.

For example, real estate brokers in high-demand areas like major cities or luxury property markets tend to earn higher salaries compared to those working in rural or less populated areas. Additionally, brokers with a large network of clients or those who specialize in commercial real estate transactions also have the potential to earn above the median salary.

Wrapping up

Some of the highest paying career paths for individuals with a finance degree include roles such as investment banker, Chief Financial Officer, and corporate controller.

Salary expectations for these roles can vary. Investment bankers typically earn six-figure salaries, with the potential for significant bonuses. Likewise, Chief Financial Officers and corporate controllers can expect to earn competitive wages, often surpassing the six-figure mark.

To pursue success in finance careers and maximize earning potential, individuals should consider pursuing advanced degrees, such as a Master of Business Administration, and obtaining relevant certifications, such as the Chartered Financial Analyst designation.

Gaining hands-on experience through internships and entry-level positions can provide valuable insights and help individuals progress in their careers.