Hedge Fund Compensation Satisfaction
As stated earlier, in 2007 many hedge fund professionals reported not being happy with their current compensation. The following comments are direct quotes in response to the question: “Are you happy with your overall compensation? If not, what areas are you unhappy with?”
- Comp is below what I expected, was given much higher range during interview process.
- Certain roles should have fixed bonus’ prior to considerations of fund performance.
- We are a new firm, so base and bonus are lower than industry average in anticipation of being part of future growth and an equity stake.
- Not happy at all, looking elsewhere, PM is very stingy!
- …capped performance based incentive.
- Bonus opportunity is limited to approximately 20% of Base Compensation.
- Being a small emerging fund firm long hours are required. Bonus not applicable because firm is just launching.
- …my compensation is not correlated with my performance and my responsibility…
- Bonus is paid out over the following year it’s awarded, so not in one lump sum at year end.
- Bonus is low and no upside potential with formulaic payout to performance.
- …with a large firm well known firm, they can afford to under pay.
- Base salary to low and senior partner has not given a payout scale for assets raised or issued partnership contracts.
- I want a percentage of the performance fees earned that is based on a market related formula, providing a direct incentive between pay and performance.
back to 2007 Compensation Report
