I went to yesterday’s Café Science hoping to get some answers from a former quant as to how modeling failed to predict these harsh economic times. Although there was a discussion on this topic1, I found the man leading it, Emanuel Derman, far more interesting. You see, Derman had done something that is not seen too often in either the academic or corporate world. After getting his Ph.D. in theoretical physics at Columbia, he spent more than 20 years in corporate finance, only to return to academia after his long time away. Because it seems that career paths for scientists are in a state of flux these days, I thought Derman’s experiences might be helpful to the scientific community. He reflected on the pros and cons of both worlds and discussed why he made so many transitions.
Leaving Academia:
After getting his Ph.D., Derman did postdocs in several places throughout the U.S. and Europe. In addition to the stress the constant moving caused in his personal life, he felt worn out by the system. On top of these feelings, he expressed that there was a sense in academia that if you weren’t a genius, then you weren’t able to succeed. Thus, he decided to make the move to finance, where he could return to New York and build a satisfying career.
Working in Corporate Finace:
During his time in the corporate world, Derman worked at AT&T Bell Laboratories and Goldman Sachs. At first, it was a shock to him to actually have rules and a boss. The hierarchy in the corporate world was very different than academia, mainly because someone a few levels higher than you may not understand what you do. There is sort of a just pay someone who can get it done attitude, without the necessity of actually understanding what that person is doing. However, he did say that he eventually found an environment (at Goldman Sachs) where he felt he was valued for his work.
Returning to Academia:
When asked why he returned to academia, Derman said he was “ready for a change.” He took at position at Columbia University as the director of its program in financial engineering. He seemed quite happy in his current position, discussing how he enjoys teaching and his return to the ivory tower.
Derman’s story was most intriguing to me because it demonstrated that a bright and educated scientist could be successful in many different environments. Even if you aren’t sure if an alternative career if right for you, there is comfort in knowing that you can always return to academia in one form or another. A caveat to this, of course, is the experience you gain in your specific field and just how far removed from academia you become. Nonetheless, you need to find a passion, either within or outside of academia, and pursue a career path that you feel with be stimulating and rewarding.
1 For those interested in reading more about this topic, check out a recent NY Times article that features Derman.