Compensation Study

Interesting -- what did you mean by "sub 300 comp" sounding al ittle low? My all-in is definitely below $300K...

before this financial crisis I would have said $300k was about average for an analyst / associate at a $3-5bn fund. Now I wouldn't be surprised if we're easily sub $300..more like $250

For what its worth, from one 10BN + fund, the all-in cash comp offer was between $250-290k. The rest of the upside is TBD...I heard from a head hunter this is a little below market with others being at $300k. There is going to be variation in these numbers between people since the offers are subject to negotiation.

Also, friends of mine who are joining different $500 MM- $2 BN funds in Chicago, are around $200-$225k.

All of these offers were given/accepted in May or June, so not sure if the market has moved in either direction and are for assoc. roles after 2 years of banking.

Sorry about that, I meant the sub-300mm fund comp seems low. Cope, I'd agree with those numbers (as of last year, no idea about 2009). The only 2009 hire I've spoken to went to a semi-mega fund, and they kept their comp flat from 2008 hires.

Just to be clear, for the titles in this article:

Analyst = straight from UG Associate = Pre-MBA; 2 years IB (or other similar) experience Sr. Associate = Post-MBA

Is that correct?

do you guys feel this pay structure will be sustained going forward, 2009, 2010 and beyond? it just doesnt seem in line with how market factors should be affecting dealflow and returns (and increased cap gains taxes)

Yes, Model 21, that's correct.

And I think this kind of pay structure will be maintainted going forward, but we won't see the pay scale increasing in leaps and bounds like it did between 2004 and 2007. At the junior level, our pay is not correlated to any carry, fund return, or market factors so it shouldn't fluctuate based on performance. Although I do see some of the outrageous compensation packages and non-cash incentives at the mega-funds going away.

I cannot access this, could someone possibly post a pdf copy on a filesharing site? Or if you would be so kind to email it to me, I can provide an email address. Thanks in advance.