Is $60K Base + 25% Sales Commission + 5% Equity a good compensation package for a Hedge Fund Sales Director?Subscribe
Dear WSO community,
I have been offered a job as a Sales Director at a small ($5 million AUM) hedge fund in Chicago. The hedge fund has only 3 employees but has an excellent 5-year track record with an average return of 15% p.a. (after fees) and a maximum drawdown of 15%. The financial package I have been offered is $60K base + 25% Sales Commission + 5% Equity Stake in the Company. The 25% sales commission means I get paid "25% of the management fees plus 25% of the performance fees" based on the assets raised by myself. The firms fee structure is a 2% management fee plus a 20% performance fee. The 5% Equity Stake means I get 1.25% Equity each year over 4 years (i.e. vesting of 4 years), so at the end of 4 years, if I remain at the firm, I would own 5% of the hedge fund company. Just wanted to reach out and see if I have been offered a good deal? Thanks in advance.