‘Target Bonus’ Variance

Got a stub bonus this past fall so 2021 is my first full CY. Offer letter had a target bonus amount but am trying to understand how much variance I can expect.

Let's say that target was $100K, what might be the low end and high end of the range?

Comments (11)

 
Feb 18, 2021 - 3:48pm

is this a bank or a fund? one typically sees a target at more stable (cheap) shops from a compensation standpoint. Think of the target as what you get when you hit/moderately exceed budget, nothing more. In a breakout year, maybe you get a little more than target but probably not. the upside is these kinds of places generally "take care" of you in bad years i.e. don't completely screw you, so >70% in bad years. just my 2c... 

 
  • Associate 1 in PE - LBOs
Feb 18, 2021 - 7:05pm

Thanks! This is at MM PE fund. Love the username btw, there are few from the old internet that remember that reference.

 
  • Associate 3 in PE - LBOs
Feb 18, 2021 - 5:31pm

I never had my target bonus dinged, regardless of portco performance or closed deals.  Would think less of it less like an IB bonus, which is much more variable.  This all assumes performance meets expectations. 

 
  • Principal in PE - LBOs
Feb 18, 2021 - 6:41pm

I don't know anyone who has gotten less than their target bonus. At my previous firm, getting your "target" bonus was actually a sign you needed to right the ship and/or start looking elsewhere. Average was anywhere from 5% - 25% above target, with one-off 50% years for truly exceptional fund/personal performance. YMMV of course.

 
Feb 19, 2021 - 8:10pm

From previous experience, it's totally fine dependent. I can tell you anecdotally that mine was >100% of target. That being said I think that number as a floor personally unless that's the shop culture of less meritocracy overall

Start Discussion

Popular Content See all

This Fucking Sucks
+49OFFby Prospective Monkey in Investment Banking - Mergers and Acquisitions">Prospect in IB-M&A
Why would any associate+ banker choose a BB over EB?
+31IBby Intern in Investment Banking - Mergers and Acquisitions">Intern in IB-M&A
PE isn’t the best way to get into b-school
+27BSCHby 2nd Year Associate in Private Equity - LBOs">Associate 2 in PE - LBOs
Share a day that looked like a Suits/Billions episode
+21IBby Intern in Investment Banking - Generalist">Intern in IB - Gen
What's Wrong with Warburg Industrial & Business Services?
+16PEby 1st Year Analyst in Investment Banking - Mergers and Acquisitions">Analyst 1 in IB-M&A

Total Avg Compensation

February 2021 Private Equity

  • Principal (7) $694
  • Director/MD (15) $627
  • Vice President (61) $374
  • 3rd+ Year Associate (62) $269
  • 2nd Year Associate (119) $246
  • 1st Year Associate (256) $223
  • 3rd+ Year Analyst (24) $164
  • 2nd Year Analyst (58) $137
  • 1st Year Analyst (168) $119
  • Intern/Summer Associate (18) $71
  • Intern/Summer Analyst (182) $59

Leaderboard See all

1
LonLonMilk's picture
LonLonMilk
98.5
2
Jamoldo's picture
Jamoldo
98.4
3
Secyh62's picture
Secyh62
98.3
4
CompBanker's picture
CompBanker
97.9
5
redever's picture
redever
97.8
6
frgna's picture
frgna
97.6
7
Addinator's picture
Addinator
97.6
8
NuckFuts's picture
NuckFuts
97.5
9
bolo up's picture
bolo up
97.5
10
Edifice's picture
Edifice
97.5