How much accumulated deferred comp?
I’ve been at the same HF for 12 years. Wondering what typical split is for cash / deferred, and what type of vesting schedule at other funds. Thanks
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Based on the most helpful WSO content, hedge funds typically pay bonuses in cash, with no vesting or forward obligations. This is a key distinction from banks, which often split bonuses into 70-75% cash and the rest deferred over 4 years in a mix of stock and cash. Hedge funds, especially smaller ones, tend to avoid deferred compensation structures due to their leaner operations and focus on immediate payouts.
However, if you're at a larger or more structured fund, there might be exceptions. For example, some funds could implement clawbacks or other mechanisms tied to performance, but this is less common compared to private equity or banking.
If you're looking for specifics on your fund's deferred comp or vesting, it would be best to check your employment agreement or speak with HR.
Sources: How Are Traders Paid?, Pay for First Time PE Fund, Finance can ruin your career (hot take), Distressed HFs compared to Distressed Credit within PE Firms, Vice President Fund Carry/Equity
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