4 ms·

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.