Thelander IF Digest: October 2022

How Do Bonuses Impact Compensation for Managing General Partners?

For some managing general partners, their total cash compensation is just their base salary, while others also receive a bonus as well. This doesn’t necessarily mean that those with bonuses get paid more. Those without bonuses might have a higher base salary to make up for the difference.

So which is it? In this month’s Thelander Digest, we’ll look at what percentages of managing general partners received a bonus and the median total cash they received in compensation. Let’s dive in! 

Key Takeaways
After analyzing our data, we discovered the following:

• At all AUM levels, managing general partners were compensated substantially higher when they received a bonus.
• The difference was most pronounced at firms with $1 billion or more AUM. Here, general partners made almost double the amount when they received a bonus! 

• Around two-thirds of managing general partners at firms with $500-999 million AUM reported receiving a bonus in 2022.
• At firmswith $1 billion+ AUM, around half reported receiving a bonus.
• The lowest percentage receiving a bonus (at 43%), were managing general partners at firmswith less than $500 million AUM.

Want more compensation data? Participate in the Thelander Investment Firm Salary Increase & Bonus Survey – which will run until the end of the year. It examines salary increases, bonuses, equity distribution, carry dollars at work and more. The results will be particularly valuable this year, as firms grapple with how inflation will impact compensation, and the results will assist in making educated decisions on talent acquisition and retention in a competitive market. The survey is free to participate in and will take you less than 15 minutes to complete your response. All respondents will receive a free overview report and discounted pricing on premium subscriptions.