Comp expectation
You’re at a hybrid SM/MM (think Viking). Pnl of the pod is $300m. 3 analysts, 1PM. Analysts are 5-8YOE. What’s comp expectation for the analyst? Assume equal contribution across all analysts. Do you expect comp to grow linear with pnl?
Based on the most helpful WSO content, here's what you need to know:
Comp Expectation for Analysts: At a hybrid SM/MM with a $300M PnL and 3 analysts (5-8 years of experience), comp for analysts would likely fall in the $1M-$2M range in a good year. This assumes equal contribution across analysts and a typical payout structure where analysts receive a percentage of the PnL pool.
Linear Growth with PnL: Compensation does not grow linearly with PnL. As PnL increases, the percentage allocated to analysts and the team may decrease due to firm-level considerations, such as higher firm overhead, reinvestment needs, or PM discretion. For example, while a $300M PnL might result in $1M-$2M for analysts, a $600M PnL might not necessarily double their comp.
Factors Influencing Comp:
In summary, analysts in this setup can expect strong comp, but growth in PnL won't always translate to proportional increases in pay.
Sources: https://www.wallstreetoasis.com/forums/mm-analyst-comp?customgpt=1, Citadel Equities analyst terms, HF Distribution of outcomes - by mid-30s, 2020 bonuses, Performance of the best PM’s at MM’s?
Really depends on your pm’s deal with the firm. Say Marshall Wace type where the cut is HSD to 10%, bonus pool for the team is ~$30m. Without knowing whose sub-book/coverage made most money, the pm would take $20m or little more analysts prob can take $3m each. Again hard to say without knowing dynamics.
Eaque dignissimos in praesentium quibusdam dolorum eos dolor est. Libero sint consequatur quia voluptatem error. Itaque quibusdam facere ut commodi cum voluptas ducimus. Magni tenetur sunt officiis consequatur quos et.
Reiciendis voluptatum ut nostrum reiciendis molestias. Et omnis similique eaque ut iure sit aperiam quasi. Consequatur rerum nihil deserunt ipsam magni.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...