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$1m
There are a lot of factors to consider like which type of equities (US large cap, emerging markets small cap, etc), track record/length, team size, other mandates the team may manage, and probably most importantly the revenue generated from the strategy. Regardless of all these factors, the base salary is probably $200-$400k. The bonus, profit/partner share is where the bulk of the comp will generally rest. For instance, take a PM running a $8 US large cap strategy with an average fee of 40 bps. The strategy will generate around $30 million in revenue. Let’s just say that for simplicity sake this is the only strategy at the firm which has 15 employees. At $2 million in revenue per employee, this should be a very profitable firm. The comp expense for the firm will run ~50- 60% of revs. So figure the PMs salary could be $300k, might have a bonus of 3x ($900k), but maybe they have 50% equity in the firm, so let’s just say they have a profit distribution of $5 million. The PM would get their pro rata share of $2.5 million. This is just hypothetical and largely contingent on the firm being private and closely held. This, obviously, wouldn’t work if this were a PM at a bank. If the PM doesn’t have pure equity, this also doesn’t work, but phantom equity generally would have a structure like this too. Like I said, lots of factors that go into comp.