what’s typical? I’m coming from atypical HF and one of 3 jr individuals with “subjective” bonus at year-end… looking to move new opportunity and wanted to get a feel for bonus structure… is individual performance or fund performance and what is typical? 20% of performance rev? So if your firm can produce 20% annual return on HF with 2-20 structure with $500MM AUM then payout to non-prinicpals would be $500MM*20%*20%*20% = $4MM? Seems a little low if you figure non-prinicpals could consist of 1 Jr PM/1 Sr Trader/1-2 Jr trader/1-3 Analyst… anybody care to share with estimated numbers?
$4M split a maximum of 7 ways seems low to you?
NakedPuts Wrote: ------------------------------------------------------- > $4M split a maximum of 7 ways seems low to you? if pm takes 50% and sr trader takes 20% then yes… that’s why i was asking to get a feel for other firms payout structure…
MFE Wrote: ------------------------------------------------------- > NakedPuts Wrote: > -------------------------------------------------- > ----- > > $4M split a maximum of 7 ways seems low to you? > > > if pm takes 50% and sr trader takes 20% then > yes… that’s why i was asking to get a feel for > other firms payout structure… You didn’t specify that in the original question. A $500M fund with a few principals and 7 employees is way over staffed, especially with 3 traders.
NakedPuts Wrote: ------------------------------------------------------- > MFE Wrote: > -------------------------------------------------- > ----- > > NakedPuts Wrote: > > > -------------------------------------------------- > > > ----- > > > $4M split a maximum of 7 ways seems low to > you? > > > > > > if pm takes 50% and sr trader takes 20% then > > yes… that’s why i was asking to get a feel > for > > other firms payout structure… > > You didn’t specify that in the original question. > A $500M fund with a few principals and 7 employees > is way over staffed, especially with 3 traders. so i guess you don’t know.
Agree with naked puts. And with small funds that do have a lot of employees, it’s usually the top couple of guys that take home almost all of the money and the bottom majority get small discretionary bonuses. My bonus last year was twice as large as the 3 junior people below me combined, and my boss’s bonus was 10x as large as mine.
MFE Wrote: ------------------------------------------------------- > NakedPuts Wrote: > -------------------------------------------------- > ----- > > MFE Wrote: > > > -------------------------------------------------- > > > ----- > > > NakedPuts Wrote: > > > > > > -------------------------------------------------- > > > > > > ----- > > > > $4M split a maximum of 7 ways seems low to > > you? > > > > > > > > > if pm takes 50% and sr trader takes 20% then > > > yes… that’s why i was asking to get a feel > > for > > > other firms payout structure… > > > > You didn’t specify that in the original > question. > > A $500M fund with a few principals and 7 > employees > > is way over staffed, especially with 3 traders. > > > > so i guess you don’t know. I have some ideas based on my fund, but I feel the variability in structures among funds of this size will result in any answer I could give you being totally meaningless. Besides, the question is silly to begin with - you’re trying to come up with some annual comp number based upon assumed 20% returns. As we’ve seen recently, those don’t just print themselves. If the prospective fund is down or flat of the year and has a soft or hard hurdle, it might be awhile before any carry is coming in the door.
NakedPuts Wrote: ------------------------------------------------------- > MFE Wrote: > -------------------------------------------------- > ----- > > NakedPuts Wrote: > > > -------------------------------------------------- > > > ----- > > > MFE Wrote: > > > > > > -------------------------------------------------- > > > > > > ----- > > > > NakedPuts Wrote: > > > > > > > > > > -------------------------------------------------- > > > > > > > > > > ----- > > > > > $4M split a maximum of 7 ways seems low > to > > > you? > > > > > > > > > > > > if pm takes 50% and sr trader takes 20% > then > > > > yes… that’s why i was asking to get a > feel > > > for > > > > other firms payout structure… > > > > > > You didn’t specify that in the original > > question. > > > A $500M fund with a few principals and 7 > > employees > > > is way over staffed, especially with 3 > traders. > > > > > > > > so i guess you don’t know. > > I have some ideas based on my fund, but I feel the > variability in structures among funds of this size > will result in any answer I could give you being > totally meaningless. Besides, the question is > silly to begin with - you’re trying to come up > with some annual comp number based upon assumed > 20% returns. As we’ve seen recently, those don’t > just print themselves. If the prospective fund is > down or flat of the year and has a soft or hard > hurdle, it might be awhile before any carry is > coming in the door. great thanks. i really appreciate everything…very informative
mine was 30% percent of my salary and we had a down 10% year. AAUM are 2 bil and have about 13 people working for the firm, but my boss is so rich i dont think he runs the fund for the money anymore.
Where are the customers’ yachts?
hausm49008 Wrote: ------------------------------------------------------- > mine was 30% percent of my salary and we had a > down 10% year. AAUM are 2 bil and have about 13 > people working for the firm, but my boss is so > rich i dont think he runs the fund for the money > anymore. I work for $4B firm, one of 6, got 150% of my salary. don’t know what other 2 got, but can assure the 3 that are paid as % got 100X me. have been asked to go with hf startup, don’t know AUM as not launched yet, but probably would start at $200MM-$500MM… (hopefully)
I had a job where the bonus was “subjective” and I loved it. “Subjective” to me always seemed to translate into “wow”. Better than some stupid arsed formula that certifies a plebe and a prodigy as equal. Believe me, if you’re a start your manager will know [and PAY you handsomely for it] regardless of your rank [i.e. “Analyst” “Portfolio Manager” “Managing Director”]. Some people in this business just know more and investments is a knowledge-based industry. Willy