I recently received a VP offer at AlixPartners, can someone at AP help me understand this new profit sharing/ longevity bonus they have? The HR rep was not very clear given how new it is. I presume it is additive to any annual bonus or 401k match, correct? How does it work? How long is the vesting period? Etc.

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Congratulations and welcome to the firm. This place is low key ridiculously selective and you should be proud of yourself.

To answer your question: it is additive. I’m not sure how kosher it is to disclose details publicly, but your comp will look something like this:
* base
* sign-on
* year end bonus
* equity (I think this is 2.5% of your annual comp at VP, I’m not too sure about vesting but think it’s in the 5-7 year range)
* 401K contribution (somewhere 3-5% of comp I think?)

I wouldn’t worry too much about it, since it’s not a huge part of your package. The attractive things about it for me are 1) it grows fast (along with the valuation of the firm) and 2) it grows at each level. Our firm historically has focused on attracting talent with big numbers, so I imagine your target base + bonus gets you to where you want to be 😉

I tend to not even think about the 401K and equity portions of my comp, but they do add ~8-10% every year.

Happy to answer any other questions about my time here. Which group are you joining?

likesmarthelpful

Hey AP1, you forgot to mention Consultant (1-3 yoe) !
Will be joining as one next month :)

likeuplifting

Our shadow equity plan doesn’t kick in until 3 years at the firm. You will have plenty of time to read through all the plan documentation once you join - there are a lot of docs and videos that help explain it.

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Also there is no 401k match at AP. Only what you contribute

Look up “defined contribution plan”. There are only two times a year when an employee is enrolled. It is also based on when you joined, so if you’re new then you may not have enrolled yet.

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