Structured Finance VP Comp

Fortunate enough to be up for VP promo this year. Trying to gauge what the market comp for a VP in the structured origination space would be. Do you begin to see a haircut in comp here compared to more traditional banking? Through my analyst/associate years I haven’t seen really any discount compared to my colleagues in the more traditional areas (maybe slightly on the bonus, albeit nothing crazy), but wondering if that becomes exacerbated at VP. Any info is helpful and welcomed.

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Based on the most helpful WSO content, it seems that compensation can vary quite a bit depending on the specific role and firm. In the context of a VP role in structured origination, it's not explicitly mentioned. However, it's noted that in a VP role in PE, the total compensation was around $450k, with about 2/3 of that coming from base and bonus, and the rest from carry from an older fund.

It's also mentioned that in commercial banking, compensation can vary a lot, with mostly inflation-adjusted raises and a random larger increase of 10-20% every few years or during a promotion.

However, these are just examples and actual compensation can vary based on a multitude of factors. It's always a good idea to do some research and perhaps reach out to others in similar roles to get a better understanding of what to expect.

Sources: Q&A:Commercial Banking SVP Ask Me Anything, PE Comp Question - VP / Principal Level, Compensation Structure at the mid-management level in Corporate Development / Strategy / Finance, How does comp vary between origination vs underwriting?

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I’ve had the very unique pleasure of sitting both with traditional ib & structured in my career. Here are my honest takeaways— the WLB is marginally better in structured. From a pure hours perspective I think I work less than traditional IB i feel. My typical day starts at around 8/8:30 and I normally end around 11pm. All in I’d be hard to find a week i crack 80hrs at this point in my career. Beyond that it’s predictable which might be the most important. It’s still banking so late nights & weekends still happen but it’s not frequent or unpredictable. However, I will say one of the biggest differences I have personally felt is the sheer focus on work & I think this is one of the biggest differences in structured. A 14 hour day doesn’t include 30 minutes at lunch & an hour shooting the shit in the bullpen, which I feel I’ve had more of when i was on the other side. It’s likely this is just because the nature of the deals I work on.

The only other thing I will say is that structured finance is very different way of thinking about finance. I’d highly encourage you to do more research before you just switch into the area in the name of better WLB. For a lot of people, it’s just not for them and if you can’t stand it, doesn’t matter what your hours are, you’ll still be miserable. Happy to answer additional questions if you have them.

 

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