HedgeCo.Net- A survey conducted by JobSearchDigest.com focusing on the private equity and venture capital job market, revealed that some experienced, well-paid industry players are not satisfied with their compensation, which might cause them to leave. 

On average, the respondents stated that they strike a good balance, earning 3.5 weeks vacation and $224,000 in annual compensation. Of the nearly 400 respondents, 21 percent earn above $300,000 per year and the top 2 percent earn more than one million dollars annually. Still, nearly 75 percent are not satisfied with their pay.

Perhaps most concerning is the dissatisfaction regarding bonuses and carried interest, a portion of profits earned by the fund. Approximately 50 percent of the survey’s respondents receive some level of carry. Many, however, are not happy with their firms’ upside formulas.

“Some firms are trying to save money by not sharing the Upside formulas an inadvisable practice in a highly competitive market where professionals can easily jump ship,” says David Kochanek, president of Job Search Digest. “We believe there is a window of opportunity here to attract and retain top talent through better upside formulas.”

With senior management accounting for 41 percent of the responses, half the respondents had at least 10 years of work experience and 5 years in the industry. 42 percent have less than two years with their current firm. “To remain profitable, firms must create upside programs and cultures that attract and retain the best players
long-term,” says Kochanek.

The 2007 Private Equity and Venture Capital Compensation Survey captures information from professionals from a wide variety of firms, both large and small. Some of the firms participating in the survey included Credit Suisse, Labrador Ventures, Intel Capital, Mayfield, New Enterprise Associates, and Softbank Capital.