Compensation is totally disconnected from employee performance and contribution. There is no possibility of meaningful wage increases. Talented customer-facing employees are treated like low-end customer service agents. Voluntary turnover in equity research is excessive. In short, Morningstar is NOT a talent-focused business. Instead, it strives to be a data company that operates on razor thin margins and doesn't seek to maximize the utility of high performers. This model has made a small number of people very wealthy, including the founder. If you want to be on the wrong side of this equation, join the firm as an employee. If not, become a shareholder.
What is even more outrageous than the low pay is the lack of resources. IT support, compliance assistance and travel are severely constrained. At most financial service firms, employees such as sell-side analysts that are expected to interface with customers are given a high level of support so they can serve clients, make press interviews, and create unique deliverables. This isn't the case at Morningstar. You are forced to make do minimal resources with no possibility of improvement.
As every year ticks by, I become more disenchanted with Morningstar. Like most people who have been with the firm for any length of time, mobility is an issue. The lack of large competitors in the Chicago area basically means leaving the state and changing fields entirely. Effectively, Morningstar has become the employer of last resort for many equity research staff.
