Switzerland is dangling the carrot of more attractive tax rates in an effort to lure hedge funds and private equity groups to the country, reports eFinancial News. Corporate tax rates on hedge funds in Switzerland can range up to 40% a year. Now, some regions of the country are being permitted to offer better terms to fund managers who launch funds and create local private equity and hedge fund jobs.

Nevertheless, the Swiss tax rates are still considerably higher than the 10% to 15% levied on hedge funds in the U.S. and UK. Swiss companies have been successful in setting up fund of funds but the Swiss market still lags in the number of single-manager hedge funds and private equity groups.

A growing number of MBA students at top U.S. business schools are skipping the traditional on-campus interview process and conducting their own searches to get the job they want, according to Wall Street Journal.  Some students say they don’t want the standard jobs in finance or consulting typically offered on campus. Others are looking for jobs in a particular geographic location or know that firms hiring for venture capital jobs are known for last minute activity. The good news: despite the current economic slowdown, the job market for MBA graduates, especially those from top schools, is strong. Many top schools are also tapping their alumni networks to help self-directed job seekers in their efforts.

“Start Up” may not be the first thing that pops into mind when you think of Michigan. But the state is making all the right moves to attract venture capital funds and create an entrepreneurial culture, reports The Detroit News. The effort appears to be paying off. The amount of venture capital managed by Michigan firms has grown by 73% since 2001, with concentrations in life sciences, information technology and alternative energy.

The uptick in venture capital investing could be crucial to diversifying Michigan’s economy, which has suffered with the decline in auto-related manufacturing in recent years. Michigan also hosted the 2008 Annual Conference of the National Association of Seed and Venture Funds, September 10^th to 12^th, which should further raise awareness of venture capital opportunities in the Midwest.

Good news for those seeking jobs in private equity. Salaries and bonuses for private equity professionals in North America continued to rise through 2007 and into 2008, according to the latest edition of the Private Equity Analyst-Holt Compensation Study, which appeared in Private Equity Analyst, a newsletter published by Dow Jones & Co. The survey shows salaries rose 5.3% to $200,000. When you include bonuses and carried interest, compensation packages climbed a total of 27.3% to $401,000 from $315,000. These figures reflect salaries as of April 1, 2008 and bonuses reflect performance in 2007. Figures cover investment and administrative personnel at independent and institutional buyout, venture capital and mezzanine firms. Median compensation for managing general partners, senior partners and partners, including salary, bonus and carried interest, was listed at $1.3 million, up 18%. While the median compensation at venture capital firms was $956,000, up 37%. Whether compensation will continue at these robust levels through the remainder of 2008 is an open question, however. The credit crunch and economic downturn in the U.S. have already impacted hiring at many firms. Observers also note that while salaries may not decline, economic conditions will likely affect bonus pools.

Despite the carnage sweeping through some sectors of the financial industry, New York’s venture capital scene is thriving, reports VentureSource, a research unit of Dow Jones & Co.  67 New York-based start-ups received funding in the first half of 2008, the highest amount since 2001. Investments rose to $828 million from $480 million in 2007.  

The article cites several factors that are contributing to the revival of “Silicon Alley” after the boom-and-bust days of 2000. These include a jump in digital media start-ups to attempt to monetize online advertising and content for Madison Avenue firms, and a plethora of financial software and services companies offering money-saving tools for banks and brokerages.

Employers have two issues to deal with. First (and presumably most important), employers should take a hard look at current compensation plans of the top performers in the firm. Compare plans to current industry standards and discuss specific compensation expectations with the employee. If there is a gap between the employee’s expectations and the current plan, make closing that gap a priority or risk losing that team member to a more competitive firm.

Second, when courting potential new employees, there is an opportunity to differentiate the firm by offering something better, especially to newly minted MBA’s. In addition to base salary, consider more attractive variable compensation and a share in the upside through carry participation. Discuss the typical partner path and earnings targets (both short and long term), and consider anonymously sharing some compensation ranges earned by the top 10% in the previous year to demonstrate what is possible in the firm.

From the 2007 Private Equity and Venture Capital Compensation Report by Job Search Digest

For job seekers, we suggest taking a close look at the new compensation plan before you make a move. Gather as much information as possible in the interview process about past fund performance and determine how the proposed package will measure up to your specific expectations.

Talk to others in the firm. Ask about turnover and get any promises made in the interview process in writing before accepting an offer. There is significant income to be made but you need to be with a firm long enough to share in the upside. In addition to cash compensation, consider the culture and the work environment.

From the 2007 Private Equity and Venture Capital Compensation Report by Job Search Digest

Unlike our findings in the hedge fund industry, where employees in the UK earn higher compensation, the players in venture capital and private equity jobs in the US and UK are earning similar total compensations. The base salaries of professionals in the UK are 6% more than their US counterparts; the bonus package in the US, however, makes up for the 6% difference. The compensation gap widens when considering the cost of living as it currently costs 25% more to live in London than in NYC. Another interesting fact to note is that the vacation benefit in the UK is greater by 1 ½ weeks.

Professionals, both in the US and UK, claimed that they are able to strike a good balance between their personal and professional lives. More than 53% of the respondents from these two countries claimed that they are doing a better than average job of balancing their lives. About 20% in each claimed that their work/life balance was excellent. None of the respondents in the UK claimed that they were poorly balancing their work/life balance and only 3% in the US were doing a poor job of striking a balance in their lives.

From the 2007 Private Equity and Venture Capital Compensation Report by Job Search Digest

A large majority of the respondents stated that they were already partners or were on the partner track. 45% of the respondents said that they expected to become partner in only 3 years or less. 21% said that they were 7 years away or more from becoming a partner in their firm.

This is especially interesting as 21% of all respondents have less than 2 years of experience in the industry and 42% have been with their current firm for less than 2 years. Also, an overall 53% of the respondents have less than 5 years of industry experience and 79% have less than 5 years with their current firm.

From the 2007 Private Equity and Venture Capital Compensation Report by Job Search Digest

More than 54% of the respondents are entitled to 4 weeks or more of vacation time and 28% of respondents stated they get 3 weeks of vacation indicating that there is plenty of vacation time across the board. It is not clear, however, how much of this vacation time is actually taken each year.

49% of the respondents actually feel that they are doing a better than average job of achieving balance in their lives. Only a small minority of stated that they strike a poor balance between their work and personal lives. 38% of the respondents stated that the work/personal life balance is average. As a point of comparison from other studies, this data shows the work/life balance achieved here is better than that of those employed in the hedge fund industry.

From the 2007 Private Equity and Venture Capital Compensation Report by Job Search Digest