I'm interested to hear from anyone currently in HF/AM who sees a portion of his/her annual bonus deferred or vested. I'm interested to see if this practice is "market", and if so, at what level (by title or above a certain pay) does the vesting actually begin. Anything on structure (i.e. X% of any bonus above $Y vests across A years with B year cliff) would also be helpful. If you are getting vested, where does that vesting money sit (public equity of your employer (if public) or elsewhere) and what kind of returns do you expect it to earn?
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For us, a portion of the bonus is deferred, with more of the bonus deferred the larger it is. It's all based on a grid with bonus ranges and applicable percentages laid out. Deferred comp is invested in the fund and earns whatever the return is that year, no fees. Then payable over the following two years.
yes deferred comp is now standard. I am not going to give actual numbwes but everyone has something like: over X$, XY% of comp is deferred for X number of months and X% of that is eligible to be clawed back if you lose money.
Deferred comp is normal, but the structures can vary a whole lot...
None deferred, but might simply be a function of lack of seniority, hence lack of absolute dollar amount to warrant deferral.
Sleepy long-only. 35% of bonus in deferred comp, vests over three years. Split between stock and fund units. Golden handcuffs are a bitch.
Have heard from friends at Fidelity that they have a five-year bullet payment... so i guess things could be worse!
From my view, deferred comp also normal. Like others said, between $X-$Y, ABC% deferred, etc. Deferred percentage increases the larger the comp. I've usually seen that it vests over two years.
Long-only. 100% cash until $100k+. From there 20% deferred going into company stock and funds
How does vesting work if you leave the fund?
It depends... You may lose it all unconditionally or you may lose it if you violate your non-compete.
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