The compensation progression clearly follows the career path. On average, the compensation of associates and senior associates is less than 40% of what a managing director makes and about 65% of what a principal in the firm makes. Also the most senior team members realize 35% higher bonus percentages on average. The real money starts at the Principal level and is found to nearly double at the Managing Director level. A surprising factor is that Associates earn nearly as much as Senior Associates. This may be an indication of the high demand for talent in the market even at the lower levels or a byproduct of varying responsibilities by title between firms.
Not surprisingly, the more years of industry experience one brings, the greater likelihood he or she will participate in carry. From a title perspective, the survey found 9 out of 10 partners receive carry and 6 out of 10 of those on the partner track also stated they are receiving some level of carry today.
When examining all the responses of those who said they were dissatisfied with their compensation, many stated that lack of sharing in the upside opportunity was the main reason for their dissatisfaction with their pay packages.
From the 2007 Private Equity and Venture Capital Compensation Report by Job Search Digest
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