Comp Expectations / Convo

Background: Did ~3.5 years of banking (3 years as an analyst, then promoted to associate) before making the switch to a small to mid sized L/S equity SM fund. I just got my Jan bonus # which was pretty much what was promised (fund performance was quite good, not a blow out year either) and solid review but second year comp formula/outlook didn't come up. Felt that was a bit out of the norm but at this point don't feel that I can bring it up anymore?

4 Comments
 

I think it's a waste of time worrying about "comp outlook". This job is eat what you kill for the most part and as long as the fund is doing well at a SM, so will your comp. I'd say you should focus on building a mutual trust with your bosses / team that they know you're doing the work and you know you're being taken care of. That will pay many folds imo. Just stay laser focused on the work and bonus / comp will come with it.

 
Most Helpful

I think you absolutely can but it will show maturity to wait until later in the year. 

I suspect the reply above is misplaced because you’re not at the stage in your career where you’re directly responsible for p&l. 
 

If they did what they promised this year, they seem like decent folks (it wasn’t contractual, just a handshake?) and so you can expect them to be reasonable again in most world. Not saying blindly trust. 
 

But I think this is an opportunity to grind for a bit and show maturity and then ask about it a bit later - i.e., late q2. 

 

I think they didn't address it because it's really not common to.. there is no annual scheduled increase like in banking.. I think most people in the industry understand that if your performance and fund performance is comparable next year, you'll get paid same ballpark, if P&L lower, then less, etc. As someone said before, this is eat what you kill, it's pointless to promise anything in Jan because if fund loses money it's all worth nothing.

Only point at which you'd have a conversation like that or where you ask for a % is upon a meaningful promotion or after 3-4 yrs at the fund.. But generally I wouldnt expect big changes to your comp range in year 2 vs year 1.

 

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