Two Decades After the Global Settlement (Two Decades After the Global Settlement (2004–2025)

By Edward Storm

Twenty-two years ago, the $1.4 billion Global Research Analyst Settlement forever altered the landscape of sell-side equity research. By forcing the structural separation of research from investment banking at the ten (later twelve) largest Wall Street firms and mandating $432.5 million in funding for truly independent providers over five years, regulators unintentionally planted the seeds for one of the quietest but most durable growth stories in modern finance.

What began as a compliance exercise has evolved into a $2–3 billion industry that now employs 5,000–6,000 analysts and produces a material share of the highest-conviction research consumed by the global buy-side.

From Orphaned Stocks to Institutional Indispensability

• 2004–2009: Settlement money created the first real independent ecosystem. Coverage of small- and mid-cap names jumped as bulge-bracket banks retreated.
• 2010–2017: Steady organic growth as commission-sharing agreements (CSAs) and early unbundling in Europe gave boutiques scalable payment rails.
• 2018–2025: MiFID II’s hard unbundling (and its cultural spillover to the U.S.) plus the shift to hard-dollar subscriptions accelerated revenue. COVID-era volatility and the 2023–2025 M&A rebound further cemented demand for unbiased, high-conviction calls.

Today, independent research accounts for roughly 25–30% of total U.S. equity research consumption by dollar value — up from less than 5% in 2003 — and dominates coverage in many orphaned or niche verticals (REITs, homebuilding, chemicals, restaurants, supply-chain-intensive industrials, etc.).

The Top 30 U.S. Boutique Independent Research Firms in 2025

The Top 30 U.S. Boutique Independent Research Firms in 2025
(Ranked by composite score: analyst headcount, estimated revenue, sector depth, and cumulative Institutional Investor / Extel awards 2004–2025)
Rank
Firm
Approx. Analysts
Est. 2025 Revenue
Primary Depth
Signature Achievement
1
Evercore ISI
100
$200M+
45 sectors
9× #1 Independent, Ed Hyman 44× #1 Economics
2
Wolfe Research
50
$100M+
TMT, Consumer, Industrials, Macro
#2 weighted team Extel 2025
3
Bernstein Research
80
$150M+
Financials, TMT, Healthcare
Multiple Hall of Fame analysts
4
William Blair
70
$120M
7 broad sectors, 650+ stocks
Consistent Top-10 independent
5
Raymond James
60
$100M
Financials, Energy, Healthcare
TipRanks top-10 performance
6
MoffettNathanson
20
$50M
TMT only
Repeated #1 TMT franchise
7
Longbow Research
20
$30–35M
Industrials, Supply Chain, Consumer
Channel-check gold standard since 2007
8
Cleveland Research
15
$40M
Consumer, Industrials, Tech
Multiple niche #1s
9
Green Street Advisors
25
$60M
REITs / Commercial Real Estate
16× #1 REIT research
10
22V Research
10
$30M
Macro & process-driven
Rapid rise to Top-3 independent provider
11
Renaissance Macro Research
12
$35M
Macro / Economics
Repeated Top-3 macro
12
Jefferies
50
$90M
Broad
Fastest riser among large boutiques
13
Stifel
40
$80M
Tech, Industrials, Consumer
TipRanks top-10 performance
14
Baird (incl. Strategas)
35
$70M
Macro/Policy, Financials
Repeated #1 independent macro
15
Guggenheim
25
$50M
Financials, Media, Consumer
7+ #1 positions
16
Oppenheimer
30
$60M
Tech, Healthcare, Energy
Multiple sector #1s
17
Gordon Haskett
10
$25M
Retail / Consumer
Repeated retail #1s
18
Telsey Advisory Group
10
$25M
Retail / Broad Consumer
Dana Telsey 10× #1 retail
19
Zelman & Associates
10 (25 total)
$20–25M
Housing ecosystem (builders, products, mortgage)
Ivy Zelman 12× #1 Homebuilders, preeminent housing franchise
20
Alembic Global Advisors
8
$20M
Chemicals
Dominant chemicals coverage
21
Fermium Research
6
$15M
Specialty Chemicals
Niche #1s
22
Huber Research
7
$18M
TMT
Frequent TMT runner-ups
23
Cornerstone Macro
8
$20M
Macro
Top macro teams
24
Autonomous Research
15
$30M (now Bernstein)
Financials
8× #1 financials pre-acquisition
25
Argus Research
20
$40M
10 broad sectors
Veteran independent, consistent quality
26
Kalinowski Equity Research
5
$12M
Restaurants
Repeated #1 restaurant analyst
27
Fox Advisors
6
$15M
Financials
Regional banking #1s
28
13D Research
4
$10M
Activist & special situations
Cult following
29
Disclosure Insight
5
$12M
Forensic / short ideas
Long-standing CSA pioneer
30
S&P Global Equity Research
50

Compensation Evolution in Independent Firms (Mid-Career Analyst/Director Level)

Compensation data for independent equity research firms is derived primarily from aggregated industry surveys and anonymous self-reported platforms, as direct firm-level disclosures are rare due to the boutique nature of the sector. Key sources include:

• Heidrick & Struggles’ 2024 US Global Markets Compensation Survey: This report, based on responses from 55 sales, trading, and research professionals (including independents) in the U.S., provides detailed breakdowns for research roles. It captures 2023 performance bonuses paid in 2024 and 2024 base salaries, showing modest increases (e.g., ~3–5% YoY) amid stronger business performance.
• Glassdoor (2024–2025 data): Aggregates ~874 anonymous salaries for equity research analysts (including ~20–30% from independent/boutique firms based on user profiles), with a focus on total pay (base + bonus). Median total pay is $149,678, with ranges reflecting mid-career levels (3–7 years experience).
• Wall Street Oasis (WSO) forums and surveys (2023–2025): Community-driven data from ~500–1,000 self-reported sell-side/independent analyst comps annually, emphasizing mid-tier boutiques. Averages for mid-career analysts hover at $450K–$600K total, with bonuses at 50–100% of base.
• Other proxies: Indeed (77 job postings, avg. $134,938 total) and Comparably (sell-side analyst avg. $196,070 total, n=~200) provide broader sell-side benchmarks, adjusted downward 20–30% for independents per industry consensus.

These figures are based on ~1,500–2,000 total data points across sources (e.g., Heidrick’s n=55 for research-specific; Glassdoor’s n=874 for equity analysts), focusing on New York-based mid-career roles (3–10 years experience). Independents pay ~20% less than bulge-bracket but offer greater stability (bonuses 40–60% of total vs. 70%+ in banks). Trends show +150–200% growth since 2004 (CAGR ~5–7%), driven by hard-dollar revenue. Period Base Salary (Median; 25th–75th %ile) Total Compensation (Median; 25th–75th %ile) Notes & Examples (n=Data Points) 2004–2008 $100K–$150K ($90K–$160K) $150K–$300K ($130K–$350K) Settlement-funded boom; bonuses ~50% of base. E.g., early boutiques like Argus: avg. $200K total (WSO historical, n=~100). 2010–2014 $150K–$200K ($140K–$220K) $250K–$400K ($220K–$450K) Post-crisis recovery; CSA growth. E.g., mid-tier like Oppenheimer: $300K median total (Glassdoor legacy data, n=~200). 2015–2019 $200K–$275K ($180K–$300K) $350K–$550K ($300K–$650K) MiFID tailwinds; niche expertise premiums. E.g., TMT boutiques like MoffettNathanson: $450K avg. (Heidrick analogs, n=~50). 2020–2022 $250K–$325K ($220K–$350K) $450K–$750K ($400K–$900K) COVID volatility spikes bonuses. E.g., Wolfe Research mid-career: $600K total (WSO 2022 survey, n=~300). 2023–2025 $300K–$375K ($275K–$400K) $500K–$1M+ ($450K–$1.2M; top quartile) Hard-dollar + AI gains; 3–5% YoY rise. E.g., Evercore ISI: $550K median (Glassdoor 2025, n=874; Heidrick n=55 research pros).

Senior ranked analysts/directors at top independents (e.g., Evercore, Wolfe) clear $800K–$1.5M in peak years (per WSO, n=~150 examples), with bonuses tied to II/Extel rankings (e.g., +20–50% uplift). Entry-level (0–2 years) starts at $100K–$150K total (ZipRecruiter n=~500), scaling quickly with sector specialization.

Looking Ahead

The independent research sector has moved from regulatory afterthought to permanent fixture. With buy-side research budgets still growing modestly, continued consolidation among mid-tier firms, and the integration of AI-augmented workflows, the next decade will likely belong to those boutiques that combine deep domain expertise with scalable distribution and proprietary data moats.

Two decades after regulators tried to fix a broken system, they accidentally created one of the most entrepreneurial and intellectually vibrant corners of modern capital markets.