"Other Guaranteed Compensation"

[roberto]

And what about the big decline in private equity and LBO jobs? Harvard MBAs who went into that sector this year reported the highest compensation of any: median starting salary of $150,000, with nearly half earning a $26,000 signing bonus. Yet, the big bonanza was “other guaranteed compensation” in those fields, with 45% reporting it was a median $135,000. If you were lucky enough to gather the medians in salary, bonus and other comp this year that meant you were an MBA who would earn $311,000 out of the gate.

So without getting into an MBA vs. CFA debate, what are the categories that make up the $135k of “other guaranteed compensation” here?

http://www.linkedin.com/today/post/article/20130731021753-17970806-what-harvard-mbas-are-making-this-year?trk=tod-home-art-list-large_0

[higgmond]

Complete guess here, but maybe the employer is paying off their student loans.

[Ramos4rm]

I would guess carried interest, but this would take more years to materialize rather than your first year out and the highest amount of carry would be to a GP, a position you would not get straight out of business school rather you may get an associate or principal role and work your way up. Principals still likely get carry but not as much as the GP’s. Also, you usually only get part of the carry if you actually worked on the deal…so it’d be a minimum of probably 3 years before you got any. In PE, I wouldn’t know what else is the “other guaranteed compensation”.

[mcap11]

hookers?

[ohai]

My understanding is that people put expected bonus in the “other guaranteed compensation” box. Practically, your bonus is more or less guaranteed within a range. It’s just that employers don’t put this in writing.