{"id":280415,"date":"2022-08-28T19:00:00","date_gmt":"2022-08-29T02:00:00","guid":{"rendered":"https:\/\/jthelander.com\/?p=280415"},"modified":"2022-08-28T19:00:00","modified_gmt":"2022-08-29T02:00:00","slug":"who-is-eligible-for-incentives-beyond-cash-bonus-which-incentives-are-used-and-why-cvc-unit-structure-matters","status":"publish","type":"post","link":"https:\/\/brightturn.io\/?p=280415","title":{"rendered":"Who is Eligible for Incentives Beyond Cash Bonus, which Incentives are Used, and Why CVC Unit Structure Matters?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">In August&#8217;s Thelander Digest, we give you a sneak peek at our current data from the ongoing Thelander 2022 Investment Firm &#8211; CVC Compensation Survey. We explore&nbsp;who is eligible for incentives beyond cash bonus, which incentives are used, and why CVC unit structure matters.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">First, let&#8217;s look at which positions are eligible for additional incentives.<\/p>\n\n\n\n<figure class=\"wp-block-image img-border\"><img decoding=\"async\" src=\"https:\/\/jthelander.com\/wp-content\/uploads\/50a70fab-c01e-576d-2f1e-4fb39aaa4f77.png\" alt=\"Which positions are eligible for additional incentives beyond cash bonus?\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Thelander data indicates:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>As you might expect, the results so far show that eligibility for additional incentives decreases as you move down the hierarchy of a CVC unit, with the senior corporate level executives and VPs having the most eligibility and associates and analysts having the least.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image img-border\"><img decoding=\"async\" src=\"https:\/\/jthelander.com\/wp-content\/uploads\/bb1b9f51-bae0-8b02-3987-266d6a5328d6.png\" alt=\"What are the other incentives in addition to base pay and cash bonus?\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Our data further shows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The most common additional incentive beyond cash bonus used was corporate stock (i.e. the granting of shares in the CVC unit&#8217;s parent company).<\/li>\n\n\n\n<li>The second most common was carried interest, as used by VC firms, where a percentage of the realized profits of a fund is paid out to employees after the fund closes.<\/li>\n\n\n\n<li>The third most common was shadow\/phantom\/synthetic carry, a bonus pool meant to simulate carried interest without directly assigning percentages of the profits to employees.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image img-border\"><img decoding=\"async\" src=\"https:\/\/jthelander.com\/wp-content\/uploads\/3def80cc-ad30-fa64-61a8-b143ea594d08.png\" alt=\"What are the other incentives in addition to base pay and cash bonus?\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">And finally, our data shows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The type of incentive used varies according to the structure of the CVC unit. More independent CVC units that are off their parent company&#8217;s balance sheet or separate legal entities are more likely to provide employees with carry or shadow\/phantom\/synthetic carry.<\/li>\n\n\n\n<li>CVC units that are not off-balance sheet or separate entities are less likely to provide those incentives and more likely to provide corporate stock.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Do you want to find additional CVC compensation data?<\/strong>\u00a0You can access this and many other topics for FREE by participating in our\u00a0<a href=\"https:\/\/www.cvent.com\/surveys\/Questions\/IDConfirm.aspx?s=6b57cb3a-d5bf-460d-8392-9604db661bc6\" target=\"_blank\" rel=\"noreferrer noopener\">CVC\u00a0Compensation Survey<\/a>.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Thelander is the only firm that covers the entire private capital market from your investment firm to your portfolio company&#8217;s compensation.&nbsp;Did you enjoy our Thelander Digest, have ideas for future ones, or want to learn more about how&nbsp;J.Thelander Consulting can help you make informed decisions when it comes to hiring, incentivizing, and retaining talent?&nbsp;<a href=\"mailto:info@jthelander.com\" target=\"_blank\" rel=\"noreferrer noopener\">Email us here<\/a>&nbsp;or give us a call at&nbsp;305-793-8605. We love to hear from you!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In August&#8217;s Thelander Digest, we give you a sneak peek at our current data from the ongoing Thelander 2022 Investment Firm &#8211; CVC Compensation Survey. We explore&nbsp;who is eligible for incentives beyond cash bonus, which incentives are used, and why CVC unit structure matters.&nbsp; First, let&#8217;s look at which positions are eligible for additional incentives. [&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":[6,3],"class_list":["post-280415","post","type-post","status-publish","format-standard","hentry","category-newsletter","tag-cvc","tag-newsletter"],"_links":{"self":[{"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/posts\/280415","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=280415"}],"version-history":[{"count":0,"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/posts\/280415\/revisions"}],"wp:attachment":[{"href":"https:\/\/brightturn.io\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=280415"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/brightturn.io\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=280415"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/brightturn.io\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=280415"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}