Comp expectation

Based on the most helpful WSO content, here's what you need to know:

1. 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.

2. 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.

3. Factors Influencing Comp:

   • Direct PnL Ties: Analysts with direct PnL linkage or carve-outs may see higher payouts.
   • Firm Structure: Hybrid SM/MMs like Viking may have more generous payouts compared to traditional MMs but less than pure SMs.
   • Experience and Contribution: Analysts with 5-8 years of experience are likely in the higher end of the payout range, especially if they are independently generating ideas or managing sub-sectors.

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?