As we’ve seen in years past, satisfaction with compensation is inversely related to market conditions.
When the market improves, the desire for higher earnings trumps job security. This year 40 percent reported being happy with their compensation. Last year that number was 47 percent.
We see this decrease as an indicator that private equity and VC professionals see the market moving in a positive direction.
Now, compare the last two years to 2007, when only 26 percent stated they were happy with their compensation. The industry was realizing big profits and professionals were hearing “whisper numbers” from their industry contacts of greener pastures.
Happiness is a relative state and a down-turned market can produce contentment via dampened expectations – as we see in recent years.
Back to the 2010 Private Equity Compensation Report