Job Search Digest recently released their 2015 Private Equity and Venture Capital Compensation Report. In it is a great deal of detail about how firms reacted to the changing market conditions in 2013 and 2014. Among the various interesting findings, here are three.
Job category with Highest Bonus as a Percentage of Total Compensation
Of the following 13 job categories, which would you guess has the highest percentage of total compensation from bonuses?
- Accountant/Controller
- Analyst
- Associate
- CFO
- Director
- Investment Manager
- Managing Director
- Managing Partner
- Partner
- Principal
- Senior Analyst
- Senior Associate
- Vice President
Interestingly, according to the data collected in this year’s survey, Managing Partners have the highest percentage of total compensation stemming from bonuses at 55 percent. Rounding out the top 5 are Managing Directors at 41 percent, Vice Presidents at 41 percent, Directors at 40 percent, and Associates at 36 percent.
On the other end, the job categories with the least amount of compensation stemming from bonuses include Partners at 21 percent, Analysts at 22 percent, Senior Analysts at 26 percent, Accounts/Controllers at 26 percent, and CFOs at 27 percent.
Does Pay Follow the Order of the Size of Bonuses?
Interestingly, the answer to this question is generally no, although there is some correlation. Here is what overall pay looks like for these job categories by base pay and bonus pay.
On top of the total compensation (base plus bonus) is Managing Directors at $477K, followed by Managing Partner at $460K, CFO at $382K, Partner at $334K, and Principal at $317K.
Perhaps unsurprisingly, only two of these five job categories – Managing Directors and Managing Partners – show up in the top 5 of job titles where a large portion of pay stems from bonuses. The job categories of CFO and Partner show up in the bottom 5 of positions with income stemming from bonuses, while Principals are in the middle of the bonus range.
On the bottom end of the private equity pay spectrum are Analysts, Senior Analysts, Associates, Accountants/Controllers, and Senior Associate.
Compensation by Firm Size
Which of the following would you guess has the highest average compensation?
- Up to 5 employees
- From 6 to 9 employees
- From 10 to 24 employees
- From 25 to 49 employees
- From 50 to 99 employees
- 100 or more employees
The answer: firms with an employment range from 50 to 99 employees (i.e. not the largest private equity employers!). In second and third place are firms with 25 to 49 employees and firms with 10 to 24 employees respectively. Surprisingly, firms on the bottom end of the pay spectrum are firms with 6 to 9 employees, firms with up to 5 employees, and firms with 100 or more employees.
Conclusion
Job Search Digest’s recent annual update of its Private Equity and Venture Capital Compensation Report contains some interesting insight into how firms are responding to market conditions and altering their compensation strategies. Readers will find this information helpful as they evaluate their own current pay or if seeking a new role, negotiating the pay when they receive an offer.
To purchase a copy of this year’s report, please visit www.privateequitycompensation.com.
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