Hedge Fund Compensation Survey Results

A survey conducted by www.JobSearchDigest.com, a job search website focused on the Hedge Fund job industry, revealed key insights into the world of alternative investmetn compensation. Significant bonuses and high turnover, the survey suggests, extend to workers on both sides of the Atlantic, including London.

The 2007 Hedge Fund Search Digest Compensation Survey captures information from industry players at all levels. The respondents are from more than 200 hedge funds firms, including Credit Suisse, Deutsche Bank, Goldman Sachs, and Morgan Stanley. Most respondents have less than two years with their firms, suggesting high employee turnover in the industry.

There is a lot of movement among hedge-fund employees, according to the survey. Though 50% of survey respondents had more than 10 years of professional experience, more than 60% of respondents reported being with their current firm for two years or less. This short tenure is reflected in a fraction of the professional sharing in the equity pie.

With the very top hedge fund managers earning hundreds of millions of dollars, even those making a million a year wonder what they could be making if they jump to anther firm. Production-based bonuses are an integral part of employees’ compensation, the survey found, and range from 38% of base salary to more than 400% for top producers. The survey found the further you move up in the organization, the bigger that bonus percentage becomes.

When it comes to educational requirements, a bachelor’s degree is the minimum for jobs in the field, but an advanced degree or master’s in business administration isn’t a requirement for many positions, the survey found. Although MBA’s are earning more on average, hedge fund players can be successful in the firm without an MBA or other advanced degree.

Hundreds of fund employees responded to the survey and the Web site narrowed the field down to 232 qualified candidates.

Since 2002, Job Search Digest has provided web-based career services, catering to professionals in the private equity, venture capital, and hedge fund industries worldwide. Hedge Fund Search Digest is a subscription service that provides candidates with a targeted database of jobs in the hedge fund and proprietary trading industries.

The Hedge Fund Careers blog, Alpha Calling, provides career insights from industry insiders.

Survey Suggests Financial Firms May Be Losing Talent War

Findings Provide Key Insights Into Private Equity and Venture Capital Careers

A survey conducted by JobSearchDigest.com focusing on the private equity job and venture capital job market, revealed that some experienced, well-paid industry players are not satisfied with their compensation. Designed to help private equity and venture capital players better manage their careers and fund managers differentiate their firms, the survey also revealed key insights into professionals’ work and personal life balance.

On average, the respondents stated that they strike a good balance, earning 3.5 weeks vacation and $224,000 in annual compensation. Of the nearly 400 respondents, 21 percent earn above $300,000 per year and the top 2 percent earn more than one million dollars annually. Still, nearly 75 percent are not satisfied with their pay.

Perhaps most concerning is the dissatisfaction regarding bonuses and carried interest, a portion of profits earned by the fund. Approximately 50 percent of the survey’s respondents receive some level of carry. Many, however, are not happy with their firms’ upside formulas.

With senior management accounting for 41 percent of the responses, half the respondents had at least 10 years of work experience and 5 years in the industry. 42 percent have less than two years with their current firm.

The 2007 Private Equity and Venture Capital Compensation Survey 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.

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 visit http://www.JobSearchDigest.com

by David Kochanek

April 12, 2007 

Everytime you interface with a candidate in the market, you influence your employment “brand;” either positive or negative.  Employment brand communicates information about your company and what it's like to work there. What is your organization’s culture? What is the work environment like? What makes your company different? Is that a good different or a bad kind of different?  Why do people choose to work there? How long do they stay? What about the position?  What's the real opportunity?  What is your company’s EAF?

And how about your interview process?  Did you treat everyone with professionalism?  Are your interviews scheduled smoothly or can't your team even pull together the team's schedules to meet key candidates?  What about travel arrangements?  Is that a rough process?  Does someone greet the candidate with a smile and offer a glass of water?  Do you send a follow up to candidates regardless if you are going to hire them?  This is a small industry that moves quickly.  Things change and you want as many allies in the market as possible.

How does your company’s employment brand compare to your competitors? Is it better or worse? Why?  If you can’t answer why someone should quit a successful current position to come work for your company, you’re in trouble in this market.  I know, you say, “But we’re hiring people every week.”  I’d bet your missing out on the best people.  And maybe that’s okay, given your organization’s low EAF.  Long term, I’ll place my bets on the competition.

By Kelly Munroe & David Kochanek

 
Resumes are an important piece of the career search process.  They represent your calling card for people who don't yet know who you are or what you've done.  We've seen some good resumes and plenty of bad ones.  Here are some tips for getting it right.

By David Kochanek

Many salespeople spend significant time (and sometimes money) on polishing their resume to near perfection.  Yet, some of these same folks spend very little time preparing for a face-to-face interview.  The interview is the single most important step in the hiring process and there are several things one can do to position for success.