- Already A Member? (Sign In)
A full 70% of respondents stated they receive no equity at all. 13% said they have less than 2%. And for those who do share in the equity upside, 43% said there is a vesting period in place for that equity. The data supports the thought that including a vesting period is becoming standard practice.
Still, under 20% of traders and analysts have equity stakes in their firm (similar to last year’s finding). This year 50% of portfolio managers reported having equity, up from 30% last year. Longevity with the firm plays an important part of an equity award. Last year’s report showed only about 6% of players with less than two years received equity; that number jumped this year to 25%. We view this as a fundamental shift in compensation practices in an attempt to improve hiring success and loyalty to the firm.
Even in this market, new hires have expectations of equity for key positions in hedge funds. We also believe the increase in vesting programs reflects this additional shared equity.
back to 2008 Compensation Report
