Centerview comp question
Can somebody explain to me how comp works for the senior guys at Centerview? Most banks pay a large portion of the bonus in stock, but Centerview is private, so how does that work? Would imagine they would have retention issues if it was 100% cash comp.
I would assume very similar to most private partnerships...
Fee revenue is consolidated and split among partners/co-founders/MDs based on agreed amounts, after expenses, salaries and cash bonuses to other employees. Higher-ups typically have to buy into the firm. Wouldn't be retention issues if the firm is growing and you're bringing in business. The growth is in the equity, it's just not public equity (which has the additional gains/losses from the public markets perception)
So you are saying Centerview Partners have to buy into the partnership and receive all of their annual comp in cash?
Do you know this for sure or are you speculating?
I did after all say "I assume"
I'd be curious how else they could possibly structure their comp...
They're private, so the options are pretty limited on how you get paid....cash and ownership. Could be fixed, or a % based on total revenues after costs, or a % of total earned revenue.
I learned last week that at Rothschild they give deferred cash so presumably they do the same thing at Centerview.
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