Fund Manager Quarterly Bonus Structure

Managing Director in AM - FI

I got an offer from a fund manager that pays quarterly bonuses that are predetermined to get to the agreed-upon total comp number. Haven't ironed out the details, but I have heard that salaries are on the lower side. Again, bonuses are not performance based, they are predetermined when we agree on the total comp number. I am coming from Guggenheim where I make a high salary and receive a 100% + annual bonus. The potential new employer is telling me they will beat total comp, but I have heard rumblings that they do not pay a salary over $200k for anyone, even those earning in the millions.

Does anyone have experience with this type of pay structure?

Comments (4)

Nov 26, 2019

That doesn't make much sense. If they are not performance based what is the point of paying quarterly bonuses? What is the "bonus" component? Are they personal performance based but not company (or company perf)? If not, and it is truly predetermined, that is just called a salary and a very weird way to pay it.

Anyway, I have not heard of this. I would not be ok with that, especially if it was a reasonable part of my comp.

While salaries in HFs aren't always super high (bonuses can be) $200k is also a very low number of senior salaries.

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Nov 27, 2019

I agree. I've been around for some time, and I have never heard anything like this. Again, I was just given an overview of the structure, I find out more details Monday. You're right, it sounds more like a delayed salary payment. Could be quarterly bonus floors and if I exceed performance standards the numbers increase? Either way, the structure seems extremely odd. Great opportunity as the company is doing some interesting things, but I might just have to stay put for now.

  • Quant in HF - Other
Nov 28, 2019

I believe Winton does something similar in the UK but it's still performance related. Never heard of a predetermined quarterly bonus. The 200k thing sounds very unusual as well. How big is this firm?

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Nov 30, 2019
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