Is it better to only jump ship for a promotion or is a lateral with strong upside also worth it?

Based on the most helpful WSO content, here are some key considerations for your decision:

Pros of Taking the Lateral Move:

1. Better Prestige and Learning Opportunities:

   • Moving to a top-tier Asset Management (AM) firm with better prestige can significantly enhance your resume and future career prospects.
   • The learning opportunities at a top-tier firm can be invaluable, providing you with exposure to more sophisticated strategies and potentially better mentorship.

2. Better Pay:

   • Even though it's a lateral move, the pay is better at the new firm. This immediate financial benefit can be a strong incentive.

3. Future Promotion Potential:

   • The new firm offers substantially better pay at the Analyst levels and above. If you believe you can leverage the learning opportunities and perform well, you might position yourself for a faster promotion compared to waiting indefinitely at your current firm.

Cons of Taking the Lateral Move:

1. Starting Over:

   • You will be starting over in terms of building relationships and proving yourself in a new environment. This can be challenging and may take time.

2. Uncertainty of Promotion:

   • While the new firm offers better pay at higher levels, there is no guarantee of promotion. You will need to assess the firm's promotion track record and your own ability to stand out.

Pros of Waiting for an Analyst Position:

1. Stability:

   • Staying at your current firm where you are already established can provide stability and a clear path if an Analyst position opens up.

2. Current Company Fit:

   • If you are fine with your current company, the familiarity and existing relationships can be advantageous.

Cons of Waiting for an Analyst Position:

1. Indefinite Wait:

   • As highlighted in previous WSO threads, waiting for an Analyst position can be uncertain and may take years. There is no guarantee that a position will open up soon.

2. Missed Opportunities:

   • By waiting, you might miss out on the better learning opportunities, prestige, and pay that the new firm offers.

Conclusion:

Given the context, it seems advantageous to take the lateral move to the top-tier AM firm. The better prestige, learning opportunities, and immediate pay increase outweigh the potential risks. Additionally, the new environment might offer a faster track to promotion, especially if you can leverage the enhanced learning opportunities effectively.

If you have any more specific concerns or need further details, feel free to ask!

Sources: Life decisions...buy-side equity analyst, https://www.wallstreetoasis.com/forum/equity-research/career-ladder-equity-research-vs-investment-banking-a-definitive-guide-part-3?customgpt=1, Snubbed for promotion - What would you do?, Better career path: associate at REIT or small PE shop?, A warning to those aiming for Sell Side Equity Research