Given most comp is tied up in bonus and at the junior level the upside isn't necessarily tied to fund performance (though downside for sure is) - how do you bring up expectations with your seniors? Do most people just take whatever is given and talk after the fact? Any sample scenarios or literal wording would be helpful.
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interested as well
Depends how junior, 1-3 years in you probably better off just shutting up and being grateful
Unfortunately often easier to move jobs to secure better comp than have a rational discussion with existing place
Does that hold true for 10bn+ l/s funds/tiger Cubs? Was under the impression that upside is significantly higher in l/s vs other strats, and that even analysts at those funds can crack mid 7 figures in a great year
Yes it's true. If you work as an analyst at 10bn+ single manager you'll definitely make 8 figures in a decent year and pm's and partners make multiples of that(100-200 million) with comp reaching billions of dollars easily in blowout years
I really hope this is sarcastic.
You don't. This "setting expectations" does not happen in IB, consulting or PE. I don't know why people think it's a thing in HFs.
You wait for your boss to give you the number, and then you can talk about it. Needless to say, 99% of the time the number won't change unless there's an egregious error or you credibly threat with leaving.
PMs and "bosses" just don't like to set precedent that you can negotiate your bonus number up after it's been given. Best you can shoot for is making him aware you feel underpaid so he bears that in mind for next year.
Sorry to bring the bad news, but this is how it works.
this
although i've heard of instances where star performers have gotten their number adjusted after throwing a hissy fit and subtly implying that "other firms would have paid them more." but you have to be a star performer for this to work.
Just had this conversation recently. I don't work in HF, I work in AM, and I am pretty junior.
Firstly, (and this goes without saying, but regardless) be grateful for your bonus. They could always give you a goose egg if they feel like it, so even if your bonus isn't awesome, act appreciative.
Secondly, you should have a conversation about expectations concerning bonus, and be somewhat candid about year end compensation, your expectations, and how your performance impacted that. This will probably be an uncomfortable conversation for your manager or supervisor, so you should be somewhat careful about your wording while still getting what you're looking for in a conversation.
I personally waited for my supervisor to initiate the conversation, rather than doing so myself. We had a conversation. I already knew what my target bonus was before signing my offer, and I was awarded my target bonus and given a small raise. I continued to ask questions like:
"What will my bonus look like in future years? What are the ranges of bonuses and what is typical?" (The ability to know the range of compensation for your job is something your employer is legally obliged to give you in my state in the US, so they basically have to tell you if you're where I'm from)
"How did my performance play into my bonus?" (It likely did not significantly since I had only been working at my current company for a couple months at that point)
MMPM is pretty spot on here. I definitely was hoping for a bit better on my end, and let my manager know that. Hopefully, by next year it'll go more my way, but you're not going to get your bonus adjusted after it is set.
Interested in advice from some ppl with a couple years of experience on how to react/respond when getting the bonus. How to understand pay for the next year, why bonus was the way it was, etc. Broad advice would be appreciated
Simple. If you have an at least neutral if not positive relationship with your direct super...ask them those very (general) questions, show your gratitude. Of course, make them QUESTIONS and don't try and sidecar any misgivings or lack of gratitude in there.
IMO focus on responsibilities at junior levels. That's the input vs comp is the output. If you have increasing responsibility the comp will follow. And if not you will have a lot more leverage/easier to move somewhere else. Focusing on comp at junior levels is missing the forest for the trees.
Anyone here actually have junior analysts that you have comp discussion with? What do they normally say? Anything they have said to upset you?
bump. same question.
Nope, never heard of anyone lower than a VP directly whine or try to change their bonus number.
Come on guys you’re all in for the potential fat carry at the end of the tunnel
What do you mean? This isn't PE.
The main thing is to understand your worth ahead of time, so either through friends on street or headhunters. Having a # in mind that is not rationale will annoy you more. Next, prepared to be screwed somewhat, nature of business goal is for them to pay you exactly amount you wont want to quit. Lastly try to tie performance to the # since thats all you want to know.
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