Found this article on Institutional Investor.
Average total cash compensation for HF employees was $314K.
Obviously the CIOs, who earn $544K, and CFOs, who earned $452K, are skewing the average higher.
So for the monkeys with 2-5 years of experience before moving to the buy-side, earning $200K-$300K may be too aggressive of a goal?
http://www.institutionalinvestorsalpha.com/Article/3143151/Search/Despi…
Also, a survey by GloCap states: "Intense competition limited compensation pools at entry and mid-level positions."
Numbers actually sound too low to me. The average CIO of a fund makes only 544K? I mean, Steven Cohen or Ken Griffin or John Paulson (in a good year, not last year) alone must make enough to pull the average up higher than that. I suppose they must be including every tiny 2-3 person hedge fund in there to get the numbers.
"It covers the wide range of jobs conducted at hedge fund firms, from managing director to portfolio manager to compliance to back office functions such as controllers and accountants and IT and technical support."
Attention to detail man.
Woah, easy there. You're just going to assume that because I didn't spell that out in my short OP that I didn't read the entire things? I did know that - I was just curious to see what others would say.
Also, a PM/CIO/CFO should push the average comp up higher than someone in the back-office would push it down. Comp has a a higher upper bound than lower bound.
No, I was referring specifically to the last sentence of the article, which said chief investment officers make an average of 544k, including salary and bonus.
Wasn't talking to you.
There are dozens of threads on this. It really doesn't matter if you make 100k or 400k if you only have a few years of experience. Its an apprenticeship business. If you are at a decent fund the goodwill of your boss means far, far more than an incremental 50-150k a year after tax. Don't get me wrong, its nice to get paid, but if you simply chase an all-in comp number at the age of 25 vs. thinking about your long term career goals you shouldn't be in this business.
Agreed. Compensation is a small part of the ROI calculation early in your career.
I wasn't trying to sound any alarm bells and I didn't search for any of the other threads on this - my bad.
I was curious to see if anyone brings up anything interest because of the article. Would you mind giving an non-obvious example of the benefits of building goodwill with your PM?
I'll give you an obvious example: he will pay you more down the road.
To answer the question in the title, yes you should temper your expectations if you're entry level. But not longer term. Eventually, the goal is a piece of the pie. And industry averages aren't too meaningful there; it's a function of AUM, fees, and your share.
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