{"id":279478,"date":"2024-11-19T14:00:00","date_gmt":"2024-11-19T22:00:00","guid":{"rendered":"https:\/\/jthelander.com\/?p=279478"},"modified":"2024-11-19T14:00:00","modified_gmt":"2024-11-19T22:00:00","slug":"investment-firm-salary-increase-trends-by-aum","status":"publish","type":"post","link":"https:\/\/brightturn.io\/?p=279478","title":{"rendered":"Investment Firm Salary Increase Trends &amp; Getting Your Salary Right by AUM"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">While base salary is a fundamental compensation component, annual salary increases serve as a strategic tool aimed at achieving multiple objectives. They reward performance, address cost of living adjustments, and help retain key talent. Given the nuanced role of salary increases\u00a0at\u00a0investment firms, it&#8217;s essential to align them with market benchmarks and the strategic value of each role within the firm.<br><br>In this issue, we delve into how compensation trends have evolved since 2020 for managing general\u00a0partners at\u00a0firms with either less than $1 billion or more than $1 billion in total\u00a0AUM. The Thelander Platform allows you to customize compensation data tables more granularly, from less than $25 million to over $7 billion in AUM for over 80 positions. Let&#8217;s explore the data.<\/p>\n\n\n\n<figure class=\"wp-block-image img-border\"><img decoding=\"async\" src=\"https:\/\/jthelander.com\/wp-content\/uploads\/c88ca6cb-b23c-f744-a1f5-2bfe3c256f9b.png\" alt=\"75th %tile Total Cash - Managing General Partner\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<figure class=\"wp-block-image img-border\"><img decoding=\"async\" src=\"https:\/\/jthelander.com\/wp-content\/uploads\/f338b421-7ff4-f85f-7cd3-5044d765f7fb.png\" alt=\"75th %tile Carried Interest - Managing General Partner\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Chart 1 and 2<\/strong>&nbsp;tracks changes at the 75th percentile for total cash and carried interest for Managing General Partners at investment firms by AUM.&nbsp;We see the following:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><img decoding=\"async\" height=\"23\" src=\"https:\/\/jthelander.com\/wp-content\/uploads\/b3b91457-6065-d89f-0e4b-b69cfd41f221.png\" width=\"28\"><strong>Less Than $1 Billion AUM:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>There&#8217;s a decrease at the 75th percentile in total cash&nbsp;for Managing General Partners from&nbsp;$750,000 in 2020 to $650,000 in 2024.&nbsp;<\/li>\n\n\n\n<li>However, there&#8217;s an increase in carried interest over the same period &#8211; going from 45% to 50%.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><img decoding=\"async\" height=\"23\" src=\"https:\/\/jthelander.com\/wp-content\/uploads\/b3b91457-6065-d89f-0e4b-b69cfd41f221.png\" width=\"28\"><strong>More than<\/strong>&nbsp;<strong>$1 Billion AUM:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Total cash at the 75th percentile has risen from $1,700,000 in 2020 to $2,000,000 in 2024.<\/li>\n\n\n\n<li>Carried interest percentages have decreased from a peak of 39.00% in 2021 to 30.50% in 2023,&nbsp;which has remained steady YoY.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">How do salary increase come into play with market data?&nbsp;Typically, if your&nbsp;base salary&nbsp;aligns with median values, your potential increase could be higher compared to those at the 75th percentile or maximum.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image img-border\"><img decoding=\"async\" src=\"https:\/\/jthelander.com\/wp-content\/uploads\/fd608b34-6ab5-8d9d-0a3e-5430dfb8bf3b.png\" alt=\"Percent who received a salary increase\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Chart 3<\/strong>&nbsp;from last year&#8217;s Salary Increase &amp; Bonus Report illustrates&nbsp;the following:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><img decoding=\"async\" height=\"23\" src=\"https:\/\/jthelander.com\/wp-content\/uploads\/b3b91457-6065-d89f-0e4b-b69cfd41f221.png\" width=\"28\">More junior positions are more likely to receive a salary increase &#8211; across all AUM brackets.<br><img decoding=\"async\" height=\"23\" src=\"https:\/\/jthelander.com\/wp-content\/uploads\/b3b91457-6065-d89f-0e4b-b69cfd41f221.png\" width=\"28\">Salary increase percentages varied between 3.5% to 8.8%, influenced by the seniority of the investment professional position.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">T<strong>he bottom line:<\/strong><br>&nbsp;To determine how much your salary increase you increase for 2025, fill out the&nbsp;<a href=\"https:\/\/survey.jthelander.com\/surveys\/1002\/\" target=\"_blank\" rel=\"noreferrer noopener\">Thelander-PitchBook Salary Increase &amp; Bonus Survey<\/a>&nbsp;at no cost. Your confidentiality is guaranteed. Participation&nbsp;also grants you 12 months of free access to real-time data on base salaries, bonuses and carried interest percentages on Thelander\u2019s proprietary platform &#8211; allowing you to access the the most comprehensive dataset available to venture capital and private equity firms.<\/p>\n\n\n\n<p class=\"has-text-align-center btn-post wp-block-paragraph\"><a href=\"https:\/\/survey.jthelander.com\/surveys\/1002\/\" target=\"_blank\" rel=\"noreferrer noopener\">Participate in the Thelander-PitchBook Salary Increase &amp; Bonus Survey<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>While base salary is a fundamental compensation component, annual salary increases serve as a strategic tool aimed at achieving multiple objectives. They reward performance, address cost of living adjustments, and help retain key talent. Given the nuanced role of salary increases\u00a0at\u00a0investment firms, it&#8217;s essential to align them with market benchmarks and the strategic value of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[5,3],"class_list":["post-279478","post","type-post","status-publish","format-standard","hentry","category-newsletter","tag-investment-firm","tag-newsletter"],"_links":{"self":[{"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/posts\/279478","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/brightturn.io\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=279478"}],"version-history":[{"count":0,"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/posts\/279478\/revisions"}],"wp:attachment":[{"href":"https:\/\/brightturn.io\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=279478"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/brightturn.io\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=279478"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/brightturn.io\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=279478"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}