Appropriate comp for 1st year analyst
Incoming analyst at a recently launched hf out of school. AUM ~500m and raising more money now. The people at the hf asked me what my comp expectation was. I said I would be fine with comp that's in line with first year ib analysts since I didn't really have anything else to go off from. What would be an appropriate comp to ask? I can try to negotiate too since I haven't signed anything yet. Would ~75 base + bonus be a good comp or is that a bit low or more?
You need to try and be explicit about your bonus expectations (or have them give you numbers) as possible. Whether it is related to the funds performance, your performance, or some combination. With startup funds it is tricky, but first year IB pay is roughly in line, but the bonus piece is important, if you just negotiate your base you might get crushed on bonus.
Larger funds will pay more for first year, but depends on fund type and financial stability. On the low end $150k is a starting number for the more established funds (for people without experience). Hope this helps.
Thanks, can I pm you? Not sure how to go about negotiating bonuses
Yes sure you can PM
Thanks pmed
The more important thing is what does the 2-5 year trajectory look like? Ask him questions like, "contingent on good performance, would carry be an option down the road?". Getting meaningful carry and ownership of profits is the way to make a lot of money in this industry and your career, so this is really important (base salary isn't the way people get rich at a HF)
You guys are dreaming. What leverage does a 22 year old with zero experience have to bring up carry? The first 6 or even 12months on the job you will be getting paid to learn, adding little value.
If you are a rockstar 4 years from now, they will be glad to discuss better terms to retain you. But dont f up now and lose your position because of being greedy. Funds are reneging on offers because of the virus. Be happy you got your offer, be humble, and ask for no more than market comp for the time being.
Yes but performance bonus is market comp. I think the OP needs to have a reasonable view into what all in comp should look like in year 1 and a rough idea of what the trajectory looks like. I agree with not pushing things and being humble, but you don’t want to get caught in a place that won’t develop you (especially if you have other options).
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