Most hedge fund professionals receive no equity at all in their firm, according to the 2009 JobSearchDigest Hedge Fund Compensation Report. Among those who do share in the equity upside, a large portion said there is a vesting period in place for that equity.
A full 70% of respondents stated they receive no equity at all. 13% said they have less than 2%. And for those who do share in the equity upside, 43% said there is a vesting period in place for that equity. The data supports the thought a vesting period is becoming standard practice in the hedge fund industry.
Still, under 20% of traders and analysts have equity stakes in their firm (similar to last year’s finding). This year, 50% of portfolio managers reported having equity, up from 30% last year. Longevity with the firm plays an important part of an equity award. Last year’s report showed only about 6% of players with less than two years received equity; that number jumped this year to 25%. We view this as a fundamental shift in compensation practices in an attempt to improve hiring success and loyalty to the firm.
You can read the executive summary of the Hedge Fund Compensation Report at JobSearchDigest.com