Pay Structure of Revenue Generating Roles?
I just began a new role in IB and was wondering how senior folk get compensated. What's the pay structure usually like for people in revenue generating roles? Is it based on a % of the total contribution attributed to a specific person?
Example: A friend of mine works at a boutique. Said their MD brings in $Xm per year in fees, and their cut is y% of the total contribution they added that year, minus base salary. Would that be how it works at most shops, or can structures vary?
Based on the context provided, it seems that compensation structures can indeed vary widely across different roles and industries. However, the specifics for revenue-generating roles in investment banking aren't explicitly mentioned in the context.
In general, it's common for roles in finance, including investment banking, to have a compensation structure that includes a base salary, a performance-based bonus, and sometimes additional components like stock options or RSUs. The bonus can be influenced by both the performance of the individual and the firm as a whole.
However, the exact details, such as whether the bonus is a percentage of the total contribution attributed to a specific person, can vary between different firms and roles. It's also worth noting that compensation structures can evolve as one progresses through the ranks, with more senior roles potentially having different structures compared to junior roles.
I would recommend reaching out to more experienced colleagues or mentors in your firm to get a better understanding of the compensation structure in your specific role and firm.
I believe it should typically be a % of revenue generated for the firm. That’s how it works in my boutique.
Do they all get paid out on the year they generate that revenue?
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