Compensation on Long-Term Payouts
Hi Everyone,
I am a VP at a boutique investment shop (10-20 employees), structured similarly to PE. Recently, I independently secured a deal in a sector which the firm has never done in business previously. The deal will earn us approximately $15 million in fee revenue over the next 15 years. Given that we are a small firm, and this is the first time we have had a deal with such a long term payout, there is no precedent for how I will be compensated on this deal. The firm is offering me a generous portion of the proceeds, but they are resistant to paying me for the full stream upfront, or continuing to pay me if I voluntarily leave in the future.
My question is, how do larger shops handle situations like this? I understand that they don't want to take the risk of paying me on the full revenue stream on day one - but 15 years is a long time. If I continue originating deals structured like this, I will inevitably have to leave a lot of earnings on the table if I ever leave the firm. Is it unreasonable to expect to be paid upfront, at a discount? Or a contract that would pay me even if I am no longer an employee?
Interested to hear your thoughts. Thank you!
Veniam error rerum in dolor animi autem inventore. Recusandae mollitia inventore aut harum sit magni rerum.
Neque nisi quasi eveniet temporibus reprehenderit. Itaque culpa tenetur et alias velit a qui voluptatem. Voluptates aperiam esse iusto veniam nobis. Tempore doloribus atque doloremque. Doloremque natus non vitae qui dolorum tempore nihil. Sit autem eveniet consequatur fuga eius voluptatum enim sunt.
Iste nam voluptatem rerum. Voluptatem quis laudantium et vero illo.
Voluptates hic saepe quas est ipsum rerum. Dolores doloribus id voluptas consequatur dolorem sed. Ea numquam aut quia. Ipsa nihil libero velit quis delectus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...