The annual Private Equity Jobs Digest Compensation Reports are based on surveys designed to capture valuable compensation information directly from those directly involved in private equity and venture capital. Over the years, we have surveyed many partners, principals, vice presidents, associates and others from investment firms, both large and small.
The complete report is sold on www.PrivateEquityCompensation.com and a complimentary version of the report is available to our Premium Members for no additional cost.
Here we summarize the results of the current private equity compensation survey to include some of the earnings data and other findings. The report addresses issues such as the compensation earned by professionals and their work satisfaction. The report also reveal how these professionals perceive their work and what they expect from their employers.
In this, the fifteenth annual Private Equity & Venture Capital Compensation Report, we identify current industry compensation trends and provide insights into their effect on compensation practices, recruitment and retention.
This year marks the eighth straight year of compensation gains in the private equity and venture capital industry. The COVID-19 pandemic continued but didn’t garner as much attention in the respondents’ comments as last year. Most of the results were very similar to last year.
We continued to see a general upward trend in compensation. The percentage of respondents earning $150,000 and below has continued to decline.
At the same time, those earning from $151,000 to $1 million increased another 7 percent after a similar increase last year, to 80 percent of respondents. This is the highest percentage of private equity and venture capital professionals reporting earnings more than $150,000 in annual compensation in the history of this report.
In most pay bands, respondents made less bonus pay compared to last year. But, overall, 61 percent of respondents expect to see greater cash earnings this year, with 39 percent earning the same or less than last year.
Bonus payouts for firms of all sizes are based on individual performance, firm performance, fund performance and a combination of factors. The largest bonuses are paid by the largest firms based on individual performance.