Analyst Incentive Structures
A lot of posts on this site about $ pay levels, but not much about actual incentive structures (i.e. I'm more interested in how one gets paid vs what one gets paid for the purpose of this post). Curious what people have experienced over time? What did you like, what did you not like? What do you think would work and/or incent the right type of analyst behavior? I can tell you at my old firm, there was very little direct tie to personal contribution to the portfolio, and it was over-weighted to the aggregate, which I found very demotivating. Ex: I covered a smaller sector and like 40% of my outcome was dependent on our tech/com services analyst by definition. Curious what others have experienced and what has worked for them, paper portfolios, recommended lists, buy/sell/hold rating performance, # of names in the book, number of ideas generated in a given year, etc. What do you guys think works the best? What is the worst?