Negotiating Comp
Serious question when interviewing. Background: 5YOE in hedge fund fundamental equities, interviewing for a pod Analyst seat.
When it comes to comp talk, how do I talk about it with PM? And how far to push on negotiation on topics like first yr guarantee, PnL% and comp philosophy, sign-on etc. Is it fair to get these terms / trajectory promises in writing?
It will be my first time switching jobs since college so not sure how to approach these and would appreciate any color. Many thanks and happy christmas monkeys!
Always remember if it's not in writing, it's worthless. Even if the PM seems ethical and like a good person, always ask for a written agreement, it's standard practice. The PM can change one morning when they wake up the wrong way, or they make a ton one year and don't feel like paying you.
I learned this the hard way. Cost 7 figures.
wow sorry you had to go thru that.
And any scales on whats reasonable for a sign-on / base / first year guarantee (if at all) given my experience?
Do you have experience managing positions? If I hired someone with your experience: $200K base + your deferred + 5% of your P&L (with a floor corresponding to 50% of your last year's bonus), if you're a proven analyst who can run risk.
If not, $200K base + anywhere between no guarantee to 100%. Most likely lean towards the former end of the range.
I would ask for your ideal compensation and negotiate from there. Be more aggressive if the position is optionality for you, less if you need it.
very helpful. Thanks a lot
I dont have a carve currently per se but i have experience managing my names in the book. its just one book / 1 pm at a SM fund. So thinking i could go for a P&L structure? If not, was thinking $200k base + sign-on + a bonus guarantee first year which would match my current comp.
Is that reasonable?
I don't know how much leverage you have. I.e. how much you need this vs how much the PM needs you.
I think P&L structure and what you mentioned above is a reasonable first ask.
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