Compensation: PM

Discussion in 'Professional Trading' started by Busta21, Dec 28, 2012.

  1. Busta21


    Hey all. Just curious to see if there is anyone who could share what a reasonable/common compensation package would be for a PM. I know that there are different models but curious to see what types of structuring is/has been done.
  2. 1245


    I don't have an answer for you, but it makes a difference what asset class you trade and your allocation. A $100K allocation trading stocks will be different from a $500M allocation trading bonds and everything in between.

    It also makes a difference if you % of profits only or on salary plus a %. The higher the salary, the lower the % of profits.

  3. The nature of the firm and job matter. A PM at a mutual fund is compensated very differently from a PM at a hedgefund and a PM on a prop desk.
  4. Busta21


    Ok. So let's say the book is $5 mill L/S - What would be a reasonable base, in the experience of some of you. If you can even tell me. Also it's a HF, non-major fund but still reasonable in size.
  5. If you are experienced with a profitable track record at another fund then ask for +25% over your old base and an extra 5-10% of PnL.

    If you are not experienced then 80k base if you are non-NYC based, 100k base otherwise and 10% of PnL. Renegotiate next year if you have a good year.
  6. Busta21


    Thanks for the reply.