The Importance of Deferred Comp

Welcome back!

Today, we’re going to provide a flash note on why deferred compensation analytics is so important and why Buyside Hub is bridging the gap in knowledge on this opaque market.

The Importance of Deferred Comp:

Over time, cash compensation tops out for finance professionals and there’s a massive rush to understand how much some of their long-term incentives are going to be worth over time.

This is why we founded Buyside Hub, and why our built our Industry Analytics dashboard. In our Industry Analytics dashboard, we have datapoints on how you should start thinking about deferred compensation and in particular, carried interest.

Carried Interest, or "Carry" as finance professionals refer to it, is the share of profits from an investment fund that is paid to the fund's managers. It is performance based and aligned with the returns that limited partners are receiving. Typically carry is 20% of fund profits, with the typical private equity fund structure being "2 & 20" aka a 2% management fee, and then 20% of profits. This structure is most common at private equity firms.

Carry has tax benefits: Carry is taxed as long-term capital gains, meaning its taxed at 20%, instead of at ordinary income tax rates, which for rich, finance professionals is at a much higher rate of 37%.

Buyside Hub was formed so you don’t leave money on the table - so you can understand what your non-cash comp should look like. Explore our Analytics dashboard today to learn more.

Refer a Friend:

Harry here, we’re in the beginning of exploring a referral program that incentivizes you to have other buyside analysts check out the site. We’d love to hear how we can incentivize you to spread the Buyside Hub gospel - with completely free or heavily discounted finance merch on the table 👀 

The latest Job Board additions:

Here’s some of our jobs in focus for this week

1) General Atlantic is hiring a Portfolio Management Associate (NY)

2) StepStone is hiring a PE Investments Senior Associate (Singapore)

3) KKR is hiring an Asset-Based Investment Professional (NY)

You can customize your job alerts anytime on BuysideHub.com 

As always, reach out to [email protected] on how we can assist you further 🤝