We all know that money can't buy happiness. And while improving one's financial situation may not be at the top of the list of motivations driving tens of thousands of candidates each year to begin preparing for the CFA exams, it's often not far from their minds. Is there reason to hope for those who set out to conquer the prestigious title?
Two surveys carried out in 2018 by the CFA companies in Chicago, and jointly by those in Madison and Milwaukee (both located in Wisconsin) reveal that among the reasons given by people wishing to take on a new role within their respective organizations, the search for new challenges (41 %) is ahead of the salary increase (39 % for Chicago and 30 % for Madison and Milwaukee).[1]. These data confirm that increased compensation is not the first thing on CFA members' minds when they look to the future of their organization.
| Undergraduate degree | ||
| Chicago | Madison/Milwaukee | |
| CFA member | 155 000 $ | 162 500 $ |
| Non CFA member | 88 000 $ | 79 800 $ |
| Difference (in %) | 76,1% | 103,6% |
Nevertheless, remuneration remains an important issue, as we all agree. In addition to the material benefits that a high salary or pay rise can bring, they also testify to the competence and experience, among other variables, of the person receiving the financial compensation. As such, are the skills and experience of CFA designation holders recognized and valued by the companies and organizations that employ them?
| Graduate degree | ||
| Chicago | Madison/Milwaukee | |
| CFA Member | 232 000 $ | 237 357 $ |
| Non CFA member | 132 000 $ | 108 594 $ |
| Difference (in %) | 76,5% | 118,6% |
The answer is yes! The data taken from the two reports mentioned above, and summarized in the tables opposite, indicate that the median earnings of CFAs with an undergraduate degree were significantly higher than those of their non-certified colleagues. The same can be said for CFAs with post-graduate degrees.
The most recent data (2014) published by the [2] about CFA member compensation do not allow for comparison with non-CFA holders. However, a survey of over 2,600 Canadian CFA charterholders revealed that their median average remuneration was just under 150,000 $This represents an increase of 27 % since 2010, an undeniable sign of the recognized value of the CFA designation.
But beyond these material considerations, let's remember the most important fact of the two American surveys cited above: the vast majority of respondents (94 % for Chicago; 98 % for Madison/Milwaukee) feel that CFA certification has contributed positively to their career advancement. Need we say more?
Text provided by HEC Montréal
[1] CFA Society Chicago; CFA Society Madison and CFA Society Milwaukee (2018). 2018 Financial Compensation Survey. Findings and Results, p. 6. The number of respondents was 662 (Chicago) and 227 (Madison/Milwaukee).
[2] CFA Societies Canada (2015). 2015 National CFA® Member Compensation Survey, p. 32
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