Family Office - Analyst Bonus Structures
So the family office I work for is asking for my input on additional incentives/bonus structure for my role. Currently, I get Base + 10% Bonus.
I essentially lead the PE/Corp Dev arm for the office, sourcing deals (proprietary & thru intermediaries etc.), Negotiating terms, due diligence, helping structure the agreements, integration etc... I report to the office CEO & CFO.
We do Low/Middle Market Buyouts. EVs from $5M up to $200M
I thought of a few options, but also really curious to hear your inputs as well!
- Fee for qualified deals sourced. Perhaps I get some flat rate for any "qualified" deal I bring to the table
- Closing Bonus. For any deals that we close, I get either some % of total value of deal, or a flat fee.
- Some form of equity - This one is tough, we buy & hold our portfolio companies. So any equity in a particular deal, or the broader holding company would likely need to have some vesting period & liquidity option?
What's most important to me is that I feel incentivized for long term alignment at the office. Sure, I could maximize my earnings in the short term by chasing tons of deals... but that doesn't make me feel good.
I'm curious if you guys have any other alternative structures that might be worth exploring? And for any of these options, how would you go about figuring out a $ value or %?