HF cash comp holdback/vesting
Posted this on the DK thread but want to open it up. Curious what people have seen for cash comp vesting periods/holdbacks? Or you get 100% of your current year cash bonus comp on bonus day? Looking specifically for some of the bigger guys like DK.
Depends on both the fund and the seniority (which I’ve found to impact the math more).
juniors: almost always 100% cash, up until you get to mid/high 6 figures
mid career: about 60-70% cash, the rest some form of fund investment or deferral
senior: I’ve seen anywhere from 15-50% cash the rest deferred/equity/etc (more for partners, depends how you value that).
A lot of the bigger shops have brutal non-compete's and clawbacks. Buddy of mine at Elliott has 100% cash comp but vests over 3 years, you literally owe them a check for prior bonuses if you ever leave
I’ve only seen vesting of bonus as pay schedule (I.e. pay X now, rest over Y years) not as clawbacks.
For this example, and maybe it's the only one, its a broad non-compete with a clawback over last 3 bonuses
That is a lotta legal work to put the fear in you. Why even give the money if gonna claw it back so fast ha. 70/30 most common I seen, 50/25/25 as well.
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