Average sign on bonus
What’s a reasonable sign on for most junior to mid-level investment professionals at hedge funds? Obviously need them to cover any deferrals you’re giving up, but how much more is reasonable?
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Based on the most helpful WSO content, the sign-on bonus can vary significantly depending on the firm, the role, and the individual's negotiation skills. For junior to mid-level investment professionals at hedge funds, sign-on bonuses can range from a modest amount to figures that are more substantial, especially if you're moving from a position where you're giving up deferred compensation.
In one of the threads, a user shared their experience of being able to negotiate a slightly higher sign-on bonus by highlighting a unique situation where they had a clawback that they asked the bank to partially cover. This suggests that while base sign-on bonuses might be standard, there's room for negotiation, especially if you're in a position where you're forfeiting significant deferred compensation by leaving your current role.
However, it's also highlighted that as a junior, your ability to negotiate might be limited. The expectation should be realistic, focusing on ensuring that any lost compensation (like deferred bonuses) is covered. For more substantial increases beyond covering deferrals, the situation needs to be quite unique or the individual must have a highly desirable skill set or experience that the hiring hedge fund values.
In summary, while there's no fixed "average" sign-on bonus, ensuring that any deferred compensation is covered is a reasonable expectation. Anything beyond that would depend on the individual's negotiation leverage and the specific circumstances of their move.
Sources: What to pay attention to when signing a contract?, 2017 ER Bonuses, What is a Reasonable HF Analyst Bonus in a Bad Year?, Wanna Jump Straight to the Buy Side?, 2021 Graduates IB salaries, bonus, sign-on bonuses
Not sure about average, but the median has to be zero if you exclude covering deferred.
There might be a guaranteed first year minimum or something like that, but what's the point in throwing upfront money at a junior person that has to be trained and is a relative commodity?
The answer is $0.
I got $50k and $25k signing when I was junior
I received a $10k sign-on for an associate-level FP&A/strategy role in tech. Not HF space but I think it can set a baseline/floor.
I got a small sign-on bonus when I graduated. But as an experienced hire, I have never once been offered a sign-on (unless you count buying out deferred comp, but even then I didn't get the money at sign-on, it was just deferred for several years into the new company's plan).
To be fair, I've never asked for it -- maybe it's possible to negotiate a sign-on, but I always saved my negotiation for other stuff. But I've hired other experience hirs and none of them have ever asked me for a sign-on bonus either.
So many mid lvl get 7fig guarantees at pods. Not sure why the above seems to suggest peanuts.
OP asked about sign-on bonus, not guarantees. Totally unrelated things.
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