A survey conducted by Job Search Digest revealed insights into the world of hedge fund compensation. Most respondents, the survey shows, have less than two years with their firms, suggesting high employee turnover in the industry.
The high turnover extends to workers on both sides of the Atlantic. Though 50% of survey respondents had more than 10 years of professional experience, more than 60% of respondents reported being with their current firm for two years or less. This short tenure is reflected in a fraction of the professional sharing in the equity pie.
"The survey raises an interesting question," says David Kochanek, president of Job Search Digest, "Are the players unhappy because intelligent, well-educated hard charging 'Type A' people are never satisfied? Or, does the hedge fund industry have a problem."
With the very top hedge fund managers earning hundreds of millions of dollars, even those making a million a year wonder what they could be making if they jump to another firm." Kochanek added.
Production-based bonuses are an integral part of employees' compensation, the survey found, and range from 38% of base salary to more than 400% for top producers. The survey found the further you move up in the organization, the bigger that bonus percentage becomes.
When it comes to educational requirements, a bachelor's degree is the minimum for jobs in the field, but an advanced degree or master's in business administration isn't a requirement for many positions, the survey found. "Although MBA¹s are earning more on average, hedge fund players can be successful in the firm without an MBA or other advanced degree," said Kochanek.
The 2007 Hedge Fund Search Digest Compensation Survey captures information from industry players at all levels. The respondents are from more than 200 hedge funds firms, including Credit Suisse, Deutsche Bank, Goldman Sachs, and Morgan Stanley.
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