Given the hot market right now curious what people are seeing are standard Sr PM comp packages to jump ship? From what I understand market comp is
- 20% payout on PnL
- 25-30% accelerator on first $XXm of PnL
- no deferred comp/ clawback
- make whole on any deferred comp
- mid single digit m guarantee to compensate for sit out
- some support for hiring
Anything off on the above or things I’m missing?
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Yeah that’s accurate — right down the fairway. The guarantee for the top funds is higher from what I am seeing. Depending on the PM/sector it’s MSD to HSD.
Anybody have comp details on packages for Senior Analysts w/ 5-8 years buyside experience?
Packages only for PMs from what I have see . If you haven’t had discretion incentivised to manage small book under senior PM.
Ok thanks - any general idea of where comp would be for analysts in that experience range? Not running carve or general idea of what a carve economics would look like.
Sorry not trying to detract from thread but think its also relevant and not much info out there on what range I can expect.
just to clarify, this is for MM shops, correct?
If you had to ask this, you can go ahead and forget about the rest of the numbers on this screen
MSD m sounds low, heading hsd m / low DD for big 4 l/s
Let’s be clear, there isn’t a number, it is logic based.
Firms don’t just want to overpay, so what they’ll look at is how to make a comp package attractive to you. There are a few levers:
1) payout on PnL
2) AUM allocation and ramp
3) risk/constraints (they might sell you on looser constraints)
4) tech/support/staff
5) guaranteed comp
6) signing bonus
I’m probably missing others
The signing bonus is almost always to compensate for sitting out (non compete) and any deferred/equity you are leaving on the table
The guarantee comp is meant to set a floor so you don’t move and make less than you previously did (assuming you will take some time to ramp up, could have a bad year, etc)
The payout and AUM will be where they try to make it more attractive, as they want you to make more money but only if they get the return.
So when people say “oh my buddy got $10mm guarantee” it isn’t usually a carrot, it is more about making this person whole and the deal fair. If you have $1mm deferred and your friend has $10mm deferred, you both won’t get the same signing/guarantee.
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