Survey Suggests Private Equity Firms May be Losing Talent War
SAN DIEGO, CA, December 5, 2007 — A survey conducted by JobSearchDigest.com focusing on the private equity and venture capital job market, revealed key insights into compensation and personal life balance. Designed to help private equity and venture capital players better manage their careers and aid fund managers in differentiating their firms, the survey revealed that experienced, well-paid industry players are not satisfied with what their firm is currently providing.
On average, the respondents stated that they strike a pretty good personal life balance and earn 3.5 weeks vacation and $224,000 in annual compensation when bonuses are included. 21% earn more than $300,000 per year and the top 2% earn more than million dollars annually. Still, a concerning 74% are not satisfied with their compensation.
Perhaps the most concerning thing was the dissatisfaction regarding bonuses and carried interest. 50% of the respondents are receiving carry; however, many are not happy with the formula for upside. “It seems some firms are trying to save some money by not sharing enough of the upside; not an advisable practice in this highly competitive market.” says David Kochanek, President of Job Search Digest and publisher of Private Equity Jobs Digest. “There is a window of opportunity here to attract top talent through better upside formulas.”
With senior management accounting for 41% of the responses, half the respondents had at least 10 years of work experience and 5 years in the industry. “Concerning is the amount of tenure with the firm. 42% have less than 2 years with their current firm.” says Kochanek. “With all this experience, firms need to design upside programs and a culture that keeps the best players on board for the long term.”
The 2007 Private Equity Compensation Report captures information from professionals from a wide variety of firms, both large and small. Some of the firms participating in the survey included Credit Suisse, Labrador Ventures, Intel Capital, Mayfield, New Enterprise Associates, and Softbank Capital. Nearly 400 industry insiders responded to the survey.
About Job Search Digest
Since 2002, Job Search Digest has provided web-based career services catering to professionals in the private equity, venture capital, and hedge fund industries. For more information contact:
Job Search Digest
CONTACT: David Kochanek, Publisher