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So "we'll pay more than that, we promise, we just can't promise in a way thats legally binding" and "you aren't allowed to look for a better deal if you dont li

So "we'll pay more than that, we promise, we just can't promise in a way thats legally binding" and "you aren't allowed to look for a better deal if you dont like what we give you" Sounds ripe for abuse.

auntienomen 3y ago
Normally you end up with a known percent of the firm's profits. The profits can't be known in advance, but everything else is.
xadhominemx 3y ago
They tell you the formula. For a group like this it’s usually just a percentage of your profits.
- willcipriano 3y ago
  Is the formula legally binding? Can they change it retrospectively and pay out a lower bonus than it would require?
  - xadhominemx 3y ago
    No but these places are 100% dependent on attracting and retaining talent, as alpha decays quickly in unmaintained strategies.
  - JumpCrisscross 3y ago
    > Is the formula legally binding? Sort of. Traders have successfully sued when screwed on a formulaic bonus. If it's discretionary, and historically didn't follow a formula, an employee has much less to stand on.
- valdiorn 3y ago
  I've worked for 4 different quant hedge funds and interviewed with about a dozen others to reach final stages and comp negotiations. I can claim with full certainty that comp is entirely discretionary and is not beholden to any "percentages". They pay you min(market worth, amount to make you stay) - and those figures are reviewed every year. Percentages only apply to discretionary traders who are allocated a book to trade. They get to keep a certain percentage. For everyone else, especially techies and researchers, it's discretionary.
  - xadhominemx 3y ago
    Yes, if you have no pnl attribution the concept of a take doesnt even make sense. I've never heard of a fund with attribution that does not pay the analysts some percent of their profits.
  - j7ake 3y ago
    It’s crazy that it is discretionary but still have extremely oppressive non competes.
jonsolo 3y ago
It would seem that way, but I’ve known many people who have had 7- and 8-figure year-end bonuses. The key is that it’s not a one-time thing, it’s a repeated game with many players who share information. If a firm gets a reputation for underpaying its star performers, it won’t ever again get good talent, and it will die.

auntienomen 3y ago

Normally you end up with a known percent of the firm's profits. The profits can't be known in advance, but everything else is.

xadhominemx 3y ago

They tell you the formula. For a group like this it’s usually just a percentage of your profits.

willcipriano 3y ago
Is the formula legally binding? Can they change it retrospectively and pay out a lower bonus than it would require?
- xadhominemx 3y ago
  No but these places are 100% dependent on attracting and retaining talent, as alpha decays quickly in unmaintained strategies.
- JumpCrisscross 3y ago
  > Is the formula legally binding? Sort of. Traders have successfully sued when screwed on a formulaic bonus. If it's discretionary, and historically didn't follow a formula, an employee has much less to stand on.
valdiorn 3y ago
I've worked for 4 different quant hedge funds and interviewed with about a dozen others to reach final stages and comp negotiations. I can claim with full certainty that comp is entirely discretionary and is not beholden to any "percentages". They pay you min(market worth, amount to make you stay) - and those figures are reviewed every year. Percentages only apply to discretionary traders who are allocated a book to trade. They get to keep a certain percentage. For everyone else, especially techies and researchers, it's discretionary.
- xadhominemx 3y ago
  Yes, if you have no pnl attribution the concept of a take doesnt even make sense. I've never heard of a fund with attribution that does not pay the analysts some percent of their profits.
- j7ake 3y ago
  It’s crazy that it is discretionary but still have extremely oppressive non competes.

jonsolo 3y ago

It would seem that way, but I’ve known many people who have had 7- and 8-figure year-end bonuses. The key is that it’s not a one-time thing, it’s a repeated game with many players who share information. If a firm gets a reputation for underpaying its star performers, it won’t ever again get good talent, and it will die.