My friend's son recently graduated with a PhD in physics and his first job out of grad school gives a $500k salary

you people have no idea wrote:

Lots of sour grapes on

here. This salary is on the high side, but it's not uncommon for physics PhDs from top schools to make 200k+ out of college these days. Of course finance is always looking for quants, consulting firms have specific programs to recruit technical PhDs from top schools, and now the tech industry is also searching for these people. Once you add up all the bonuses, the numbers rise quickly.

Source: Know multiple people with PhDs from schools like Harvard, Stanford, MIT who were recruited heavily by all these sectors during and after graduation.

Oh you know people? I actually work in the industry, as I said earlier. Nobody gets guaranteed $500k first year. Nobody. $150k as a salary would be on the high side for 1st year out of a PhD. $200k total comp also tilts to the high side. Also as I said, if you somehow had an excellent first year and made yourself indispensable, then you could make $500k your 2nd year. Again, this would be rare. Typically, you hit that level of total comp 5-10y point. Also, many MDs don't even make $500k on salary. Total comp - sure - it will exceed that but not salary.

Someone mentioned RenTec. I can guarantee he wasn't hired there. You need a Fields medal for that.

MD = managing director fyi (not a doctor of medicine)

you people have no idea wrote:

Lots of sour grapes on

here. This salary is on the high side, but it's not uncommon for physics PhDs from top schools to make 200k+ out of college these days. Of course finance is always looking for quants, consulting firms have specific programs to recruit technical PhDs from top schools, and now the tech industry is also searching for these people. Once you add up all the bonuses, the numbers rise quickly.

Source: Know multiple people with PhDs from schools like Harvard, Stanford, MIT who were recruited heavily by all these sectors during and after graduation.

The best source is knowing people.

But you either know a liar or are a liar.

Just more reasons to hate rich people...

Quants who drive complex financial algorithms don't produce anything of value, don't contribute to larger society, they're just another bank hand being stuck into the vast river of the overall economy siphoning off value, for nothing in return for the better good.

Blood suckers, vampires, leaches, parasites, that's what these "finance" people are.

Here's a clue: if you struggle to explain to people what you do for a living, and if it's a bank or financial company that you work for, you are a professional parasite.

I didn't want to give my background away but I am a PhD student at one of those schools and I've seen first-hand how hard consulting firms, finance, tech come and recruit here. We are also in a city with lots of biotech start-ups. I've seen many of my friends go through the process and have also been exposed to some of it myself.

Oh sure, so you work in the industry and now you know everything about every industry, like biotech, tech, finance, consulting?

Some of the people from other countries, like China, are especially honest about the packages they get (it's not taboo to talk about like it is here). One Chinese guy in a group we collaborate with showed us his offer (he works in industry now), which was very generous.

you people have no idea wrote:

I didn't want to give my background away but I am a PhD student at one of those schools and I've seen first-hand how hard consulting firms, finance, tech come and recruit here. We are also in a city with lots of biotech start-ups. I've seen many of my friends go through the process and have also been exposed to some of it myself.

A professional pimp might entice you with talk of making millions but it doesn't happen first year. Sorry. Nobody gets first year guarantees anywhere near half a buck.

Again, you are still doing your PhD. Me - I've done it. I see where my friends ended up. I work in finance (a few BB banks and HFs over more than a decade). Most critically, I hire fresh PhDs (in finance) so I know exactly what they earn. You start modest but the total comp can go to the millions after a few years. But even when you are earning millions on total comp, the salary is only a few hundred thou. Not many making half a buck salary - certainly not 1st year. I can't believe I have to argue about this with a 20 year old neophyte still wet behind the ears. Actually, here's some advice for you young fella - don't be so stupidly arrogant when you interview for jobs. It will get you dinged quickly. Be humble.

So what school did you do your PhD at?

That's usually where the difference lies, especially today. Back in the day, it didn't matter as much but now there's a huge difference. As someone who sounds older, that might be something you want to be cognizant of. It is crazy how hard some of these consulting firms (among others) try to recruit.

you people have no idea wrote:

Lots of sour grapes on

here. This salary is on the high side, but it's not uncommon for physics PhDs from top schools to make 200k+ out of college these days. Of course finance is always looking for quants, consulting firms have specific programs to recruit technical PhDs from top schools, and now the tech industry is also searching for these people. Once you add up all the bonuses, the numbers rise quickly.

Source: Know multiple people with PhDs from schools like Harvard, Stanford, MIT who were recruited heavily by all these sectors during and after graduation.

How are physics PhD's making 200k somehow proof that people who doubt a 500k salary "sour grapes?"

There's a huge difference between 200k and 500k -- namely, 300k. ;^)

In other words-- 1.5 more people.

At best the OP is a fool and took a base salary and added shares/deferred comp that vested over 3-4 years to come up with a year 1 salary.

At worst the OP is a trolling sack of ____.

I'm currently working in Europe (that might give away my field) and I have to say, the attitudes here are more refreshing in a way. People make less money but they also work less and don't get into pissing fights over salary. They generally seem a lot happier with life.

Mooiiiisssttt wrote:

Just more reasons to hate rich people...

Quants who drive complex financial algorithms don't produce anything of value, don't contribute to larger society, they're just another bank hand being stuck into the vast river of the overall economy siphoning off value, for nothing in return for the better good.

Providing retirement money for senior citizens is not value or contributing to society?

I mentioned RenTech, but not in the context of potential salary, only to point out that there are quant funds that have beaten the market consistently. I agree with your comments on starting salary. Many people at investment banks and hedge funds make much more than $500k in total comp, but no one right out of school. People have to show they can help make millions if dollars before being paid as such.

you people have no idea wrote:

I didn't want to give my background away but I am a PhD student at one of those schools and I've seen first-hand how hard consulting firms, finance, tech come and recruit here. We are also in a city with lots of biotech start-ups. I've seen many of my friends go through the process and have also been exposed to some of it myself.

Ok Brohan. Two things: $200k isn't $500k and base salary and total comp are not the same. Nobody said anything about not being in demand or highly recruited.

But banking and consulting salaries are slotted and so are most PE shops for analysts. For a corporation $500k is C-suite salary. No biotech startups pay anyone $500k salary a year, not even the CEO. The fact that you mentioned biotech startups and high salary means you are full of it.

Charlie Kelly wrote:

There is exactly zero percent chance this is true. Unless he somehow got a job as a Major League Baseball player.

BINGO! Most of those who get a starting salary of $500k right out of school are athletes. Of course, many of them leave college before they finish their BA, let alone a PhD.

Every year, there are a couple of MBAs from top schools who end up making a half million/year. They often have a track record and unique skills, like the 2016 MD/MBA from Stanford who got $450k/year in pharma.

old timer here wrote:

My friend's son recently graduated with a PhD in physics from a top 10 school, and his first job out of graduate school is paying a salary of $500k.

Just so we're clear, there are thousands of young professionals who make great money at investment banks (almost definitely where he now works). If you have a math/econ/engineering/physics bachelors/masters/phd from a top 10 school, you may make $150-200k plus great bonus to start. This is not news. What would be news -- and what I'm skeptical of -- is that his salary with no direct experience is $500k -- almost definitely untrue. He MAY have the possibility of making that much with bonuses, but there's no way that's his salary. People with his pedigree and 15 years experience don't make that base unless they're execs. Salary+Bonus is another matter.

If you took 10k monkeys and had them pick stocks for 20 years, you would find one or two that drastically outperform. Is that because the chimp is good at picking stocks?:)

That being said RenTec is a crazy outlier. Probably a combo of skill and really good luck.

Averages are a lousey way of looking at individual people. There have been stories of PhD students in CS getting 5 million dollars packages. The kicker is that these "students" have 6+ years of building self driving cars for Darpa challenges. There are only a few of these people out there and the number of companies looking for them outstrips the supply. The OP person could be in a similiar boat with some specialized thing from 4+ years of doing a reasearch product.

ThisSmellsWrong wrote:

A professional pimp might entice you with talk of making millions but it doesn't happen first year. Sorry. Nobody gets first year guarantees anywhere near half a buck.

Just because he just graduated doesn't mean it is his 1st year with trading or that he has no experience with trading. Maybe this particular individual:

- has done several internships in trading

- has developed proven code or algorithms while doing his PhD

- has a personal portfolio that has done extermely well

you people have no idea wrote:

I'm currently working in Europe (that might give away my field) and I have to say, the attitudes here are more refreshing in a way. People make less money but they also work less and don't get into pissing fights over salary. They generally seem a lot happier with life.

Do you live in a European country where much of the population is on mind-altering medicine? If so, that would explain the happiness.