How much does a physician in the pharmaceutical industry make? How does the salary compare to clinical medicine? Will you have to take a pay cut to transition to a nonclinical job in pharma? Are industry salaries comparable to clinical salaries?
These are very common, and very important, questions. Many doctors have considerable student loan debt, so salary is a key factor in determining whether you can afford to leave clinical medicine.
But there’s good news about physician salaries in the pharmaceutical industry! Here are a few key considerations about money and nonclinical jobs for doctors.
First, understand that for many clinical doctors, you’re already at the top of your earning potential. In pharma, you’re coming in at the bottom, and there’s an upward trajectory of career progression, so you can expect to earn more after you have a bit of time and experience under your belt. Even if you do have to step down at first, it’s likely that your potential is higher in industry than it is in your clinical work.
Second, starting physician salaries in pharma are actually pretty good. Yes, this can depend on a number of factors, but for many physicians, the compensation is actually more than they are earning clinically. If you are a highly paid specialist, particularly in procedure-based practice, you likely will have a reduction in salary. Most physicians who are new to pharma earn a total compensation package of around $300,000. Not shabby!
Third, pharma salaries for doctors are only part of the total compensation. There are a number of factors that add considerably to the base salary, including bonus and stock. As one example, is fairly typica for an entry level physician bonus to be between 15-20% of the base salary. As you become more senior, you may earn bonuses as high as 40% or more. This is why you may see lower ‘salary’ data for these types of roles if you’ve been searching online. Understanding the total compensation, and some key differences between that compensation and your monthly cashflow, is really important. Bonus, equity, deferred compensation plans, employer contributions and matching – all of these add up significantly.
I had a colleague a few years ago who told me he always thought of ‘bonus day’ as another year of his son’s college, covered. Hopefully that paints a picture of how considerable these can be.
So, for many physicians thinking about nonclinical careers in pharma, salary is a key concern. They do want to know how much they will earn, and how that compares to what they earn today.
In my own personal experience, I earned the same my first year as a physician in pharma as I had after 10 years as an attending anesthesiologist. Today, I earn more than I ever did clinically. This will vary, but rest assured, you will be able to pay those loans. You may not have a private jet, but you may be pleasantly surprised by how much doctors in pharma make.
Understanding all of these components can be complicated, but it’s really important for a few reasons. First, you want to know so you can plan for a successful career transition. Second, you want to be ready to negotiate the offers when you get them! This is why I cover compensation and offer negotiation in my course Industry Insider. Come join me, and I’ll pull back the curtain to give you hard data and real examples.
Interested in a nonclinical career in the pharmaceutical industry? Check out this free webinar that answers all your questions about required experience, compensation, what an industry physician actually does, and how to get your foot in the door!