Managing Partner Comp
How much do you think your managing partner/ceo/whatever their titles makes per year? Curious how the distribution is among leaders of firms/provide some perspective among us young monkeys...
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If I had to guess, anywhere from $2MM to $5MM in cash. I’m sure there are other large bonuses in deferred comp etc. this would be at a life co.
Dang, that seems very high for a lifeco. Do they normally pay that well at the top?
Life Co.‘s don’t pay as high for the ‘general population’ but when you think about the man or woman running the shop - they can generally go work anywhere. So you need to pay top dollar for that.
My guess is that their cash comp is probably a bit lower (around 1mm), but their deferred gets them to the 2-3mm mark all in.
If you look at public filings, the trend for the c-suite has been to take limited cash comp, but earn the rest in carry/deferred. I would expect that companies woukd follow that example.
Also would mention that I worked on some budgeting for a fund and MD/Senior PM was 700k cash, 1mm deferred/carry. This hire reports directly to the global head of RE. I don't imagine that the global head makes more than 2x this guy
I would imagine that a CEO of a lifeco's RE arm is pulling in more than that. Based on the comp surveys I see (which may not be accurate), the *average* RE MD/Partner at a BX/STWD/BAM is pulling in $2-3mm - gotta imagine there's a premium to that for a lifeco's RE CEO.
My CEO is around $750k cash comp + another $500k in distributions from the management company plus whatever carry is, maybe $1.5mm/year based on the payouts I've seen? So all in ~$3mm? Other partners are mid hundreds cash comp + distributions from operating company (unclear) and I'd guess pull in high hundreds to low millions.
What kind of company is this?
MM Multifamily REPE.
Seems low that partners would be pulling in potentially less than $1m...
Based on what data points does that seem odd?
Reality is young people have very little insight into partner pay due to fewer people in their social circle working those jobs. Same way high school kids have very little insight into what REPE associates or HF associates actually make
I don't know what to tell you. In good years promote will probably push those higher, but it's a MM shop and the CEO/founder has most of the ownership (there are some vestigial partners that participate in current funds too, which shrinks the pie). These are actual data points though (outside of the company distributions which I don't have any insight into).
RE compensation after the associate level is tough to generalize. It really depends on your firm and the size of your firm along with the firm's structure. Such as if it is wholly owned by the partners or does another firm own part of the company. Also above the associate level the cash comp doesn't become the largest component of someone's compensation the promote / carry does.
For example I work in a middle market REPE fund with roughly 7 years of experience. My projected all in comp over the next 8 year should be around $800k per year with more than half of that in promote / carry. That is based upon 3 funds stacked upon each other that is growing in size but also I am getting a larger portion of the promote.
Damn, I definitely feel like you’re an outlier. 7 yoe at $800k?
He’s making like $300-350k cash it sounds. The other $500k is only realized when all of the funds mature. Still a shit ton of money for 7 years experience, but it’s different than $800k cash comp
all depends on fund size doesn't it? If there are 2 managing partners collecting $10m in promote vs 2 managing partners collecting $100m in promote...well yeah
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