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, our sixteenth annual Private Equity & Venture Capital Compensation Report, we again identify current industry compensation trends and provide insights into their effect on compensation practices, recruitment and retention.
This year marks the ninth straight year of compensation gains in the private equity and venture capital industry. Despite a downturn in the stock market, corporate layoffs, and discussions of recession, across the board participants reported higher total earnings over the previous year.
We continue to see a general upward trend in compensation and the percentage of respondents earning $150,000 or less continues to decline.
At the same time, those earning from $151,000 to $1 million increased another 3 percent to 87 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.
Bonus pay this year shows both ups and downs compared to last year. Overall, 65 percent of respondents expect to see greater cash earnings this year, with 35 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 this year are paid by the largest firms based on fund performance.
Regardless of size, most firms organize into smaller teams, an industry trend originally identified in this report in 2014. This year like last, 87 percent reported working in groups of less than 25 employees.
In-house training continues to receive unfavorable reviews, with nearly half of respondents reporting non-existent or weak internal training programs. Same as last year, only 18 percent rate their in-house training as good to excellent despite the benefits firms could gain in recruitment and retention by strengthening this area.
This year, compensation for those in pure-play private equity and hybrid firms outstripped those in venture capital. VC firms paid lower compensation amounts for the most common titles.