Anyone work in Equity Research here?

[terminator]

Just curious as to what the career is like. Every post on wallstreetoasis has a different take on the hours, work culture, exit ops....

So that gets me to my question: What is the job like in Calgary, particularly researching O&G? How are the work hours? The people you work with, are they fun people to be around for that 10-12 hrs a day?

Do you feel there's a future in ER?

And if someone can shine some light on compensation that'd be great also.

Thanks again amigos.

[Weitz]

I had a friend who used to do it here in Calgary.

Would ride his bike into work around 5:00 am downtown and work till like 5:00 - 6:00 every day. Didn't really enjoy it or anything so he left.

That's all I know though.

[Locke]

Riveting stuff.

[firebug]

I spent nearly 8 years in a brokerage, including some time as a ER associate...

Morning call is at 5:30 am, if you are lucky you might be able to take it from home and then come to the office later. Drinks and dinner are at 4 - 6pm but you'll probably have to head back to the office for an hour or two afterwards.

Unless of course its earnings week (really two weeks) 4 times a year, or there has been a press release in your universe, or one of your names is raising some money and you need to be out on a marketing trip, or your analyst is a prick and wants to slough off some work on you.

Compensation...
Associates: Base between 75 - 110k depending on experience plus variable comp between 0 and 200% of pay (figure 25% to 75%).
Analysts: Base between 120 - 250k plus variable comp between 50 and 400% of base.

Lots of perks with both roles... travel, expense accounts, memberships (plus you are in front of most of the management teams of companies you are covering).

Everyone is good friends until it's time to divvy up the bonus pool...

[Flames89]

firebug summed it up pretty well. Hours depend on markets and firm. Smaller boutiques can sometimes give better work/life balance.

[terminator]

Originally Posted by firebug

I spent nearly 8 years in a brokerage, including some time as a ER associate...

Morning call is at 5:30 am, if you are lucky you might be able to take it from home and then come to the office later. Drinks and dinner are at 4 - 6pm but you'll probably have to head back to the office for an hour or two afterwards.

Unless of course its earnings week (really two weeks) 4 times a year, or there has been a press release in your universe, or one of your names is raising some money and you need to be out on a marketing trip, or your analyst is a prick and wants to slough off some work on you.

Compensation...
Associates: Base between 75 - 110k depending on experience plus variable comp between 0 and 200% of pay (figure 25% to 75%).
Analysts: Base between 120 - 250k plus variable comp between 50 and 400% of base.

Lots of perks with both roles... travel, expense accounts, memberships (plus you are in front of most of the management teams of companies you are covering).

Everyone is good friends until it's time to divvy up the bonus pool...

Thank you FireBug. Do you mind me asking what do you do now? It maybe incorrect, but I don't imagine there are many other careers that pay as well, how was adjusting to the post bank life?

Am I correct in understanding that morning call is at 530 because your boss is in the EST?

Do you have to eat dinner with your co-workers? Cant one just pack eat and leave earlier?

Final question, is it possible to have a long career in ER in Calgary?
Thanks again!

[Flames89]

Morning call is between 515-530, as the markets open at 730 and you need to try and educate your attention deficit disorder afflicted sales desk in Toronto so they can go out to clients with whatever news of the day is.

Dinner is likely at your desk, or you wait and eat when you get home. Usually the later nights are during earnings season, otherwise you should be done by 6. Some smaller shops and lower tier boutiques could have you done by 4 I would wager (as markets close at 2). Totally dependant on firm to firm, but starting out I would bank on working 12-14 days.

Equity research can be a lifetime career, or it can be used as a stepping stone to get into investment banking, transition to the buy side, or go into industry (say, working in corporate development for one of the companies you covered).

[terminator]

Originally Posted by Flames89

Morning call is between 515-530, as the markets open at 730 and you need to try and educate your attention deficit disorder afflicted sales desk in Toronto so they can go out to clients with whatever news of the day is.

Dinner is likely at your desk, or you wait and eat when you get home. Usually the later nights are during earnings season, otherwise you should be done by 6. Some smaller shops and lower tier boutiques could have you done by 4 I would wager (as markets close at 2). Totally dependant on firm to firm, but starting out I would bank on working 12-14 days.

Equity research can be a lifetime career, or it can be used as a stepping stone to get into investment banking, transition to the buy side, or go into industry (say, working in corporate development for one of the companies you covered).

Thank you Flames89. Food for thought indeed.

[firebug]

Originally Posted by terminator

Thank you FireBug. Do you mind me asking what do you do now? It maybe incorrect, but I don't imagine there are many other careers that pay as well, how was adjusting to the post bank life?

Am I correct in understanding that morning call is at 530 because your boss is in the EST?

Do you have to eat dinner with your co-workers? Cant one just pack eat and leave earlier?

Final question, is it possible to have a long career in ER in Calgary?
Thanks again!

I'm now in Business Development/M&A for an intermediate size E&P firm. Pay is better in my opinion. I trade off ultimate upside for far less volatility which, in my case, is worthwhile as I'm unlikely to every earn in the top quartile at a brokerage (I don't work hard enough ;-). I spent 7 years at a small boutique in Investment Banking which had a pretty cozy lifestyle and then 3 months in ER for one of the two big canadian independent shops so I've seen things both ways. With my resume and connections I could probably switch back into the industry if I wanted to (but I hope not to get that desperate).

As noted, morning call has to occur before the TSX opens for the day so that is early for us out west.

No, you don't 'have' to go out. But everyplace I've seen empties out around 4 as someone always has an expense account to stuff (whether it be brokers, lawyers, management, Investor Relations or other analysts). I think someone would struggle in the business who doesn't enjoy the schmoozing lifestyle (like i don't). Of course work still has to be done so plan on working at home or back at the office afterwards.

A long career? Sure, but then probably not a long marriage. People who love to work, i mean are consumed by it and get their whole identity from it, can probably hack it long-term at a top shop. But for the rest of us, it can be an exciting few years that opens lots of doors for other opportunities.

Top analysts do have tremendous earning potential however (probably not a good as IB though) and someone who is smart and ambitious could retire comfortably after a decade in the biz. But, from what I've seen, the one's who are ambitious enough to succeed can't ever seem to 'turn-off-the-switch' and take it easy. Instead they keep working just as hard until they die at their desk from a heart attack in their 50's. They are interred in a fancy coffin however. ;-)

[GullFoss]

Firebug summed it up pretty well. Feel free to PM me if you have any questions

[terminator]

Thank you to all that replied, that is really good insight. Lots too think about.

[Locke]

That sounds like pure unadulterated hell.

Like the mythical Tenth Circle of hell.

[GullFoss]

Originally Posted by Locke

That sounds like pure unadulterated hell.

Like the mythical Tenth Circle of hell.

Its a grind...but I like it. Like any job, a lot of it depends on who you work for. If you're team is inflexible, then it makes for a ####ty life. But a lot are very understanding and flexible with starting and ending hours, running errands, etc. Every firm really does have a different culture...so you have to find the right fit.


I think a major consideration is that you're not making amazing money for the work you're doing - for 30 less per week, you can make similar money with better perks at an oil company. So you are working either for the exit options or the promotions. And the promotion - well you have about a 5-10% chance of getting it. At least 9/10 won't make the jump to analyst. And those who do...many fail after a few years.

[Language]

I keep deliberating as well whether I should go into equity research or not.

I'm a CA doing FP&A for an O&G company, but always wonder about a switch to ER, and whether it would be a good move, or whether it would essentially lead me back in a circle after a few years as an Associate (assuming I don't make the jump to analyst).

There's also a good chance I may have to move to NY in a few years as my significant other pursues a career there, so that's been weighing on me too, as it may be easier to find a job there with an ER background in Finance, rather than just another accountant. Oh life decisions, if only you could see the future...

To the OP, I'm sure whatever decision you make won't be a wrong one.

In any event, there seems to be a few of us here in the Finance/Accounting world. We should do a CP meetup sometime and grab a few beers, networking never hurts.

[firebug]

As I've had a few questions/pm's thought I'd answer them here.

In Calgary, the simplest way ;-) to get into banking or equity research is to have your daddy (or grand-dad) be the president of an oil company - I was amazed at how many bankers were the kids of oilmen in town.

Failing winning that womb lottery, the finance program at the UofC plants many kids into this biz. Get top marks, get involved with a club (CPMT is the gold standard but I know bankers/er that were involved in business day or Dr Bobs (?) business games teams). Clubs provide all sorts of alumni and mentor opportunities that lead to good jobs.

For those that are interested in the biz, don't forget that it is a game of sales - you are always selling something (IB even moreso than ER) and those that get hired, and that do well, are those that can demonstrate that they will be able to bring in fees. Build your network.

Know the hotshots at your firm and impress them. Who are the guys that in 5 or 10 years are going to strike out on their own to make names for themselves?

Equity Research (for O&G) loves engineers. Especially those who have some finance or accounting chops.