Comp / splits for Directors / VPs at Cap Markets teams at the big brokers?
I’m sure every team is unique, but can anyone provide some insight into how comp is structured for the execution-focused VPs & Directors for the capital markets teams at the big brokerages? Assume it is mostly a split of each deal, but is there typically a base and/or year-end bonus component as well?
if anyone can provide some specific data points from teams around the country, that’d be helpful as well. Currently speaking with a debt team in NYC and trying to drill down on a market comp structure.
Based on the most helpful WSO content, compensation structures for Directors and VPs in Capital Markets teams at large brokerages often include a mix of base salary, bonuses, and sometimes, a share of the deal fees. While the specifics can vary significantly across firms and even within teams at the same firm, here are some general insights:
Base Salary: Both VPs and Directors typically receive a competitive base salary. This base salary is consistent across the year and provides financial stability.
Bonus Component: The bonus is a significant part of the compensation package and can vary widely based on individual, team, and firm performance. Bonuses are typically awarded at the end of the fiscal year but can also include mid-year bonuses in some cases.
Deal Splits: For those directly involved in deal execution, a portion of the deal fees might be distributed as part of their compensation. The specifics of how deal fees are split can vary greatly and are often subject to negotiation. This component is more variable and directly tied to the success and volume of deals completed.
Geographical Variation: Compensation can also vary by location, with financial hubs like NYC often offering higher base salaries and bonuses to account for the higher cost of living.
Market Conditions: It's important to note that market conditions can significantly impact bonuses and deal-related compensation. In years with robust deal flow, compensation can be substantially higher.
For someone speaking with a debt team in NYC, it would be wise to consider these components while also understanding that the specifics can be influenced by the firm's compensation philosophy, the team's performance, and the overall market conditions. Negotiating and clarifying expectations around each of these components during the interview process can provide clearer insight into potential compensation.
Sources: Compensation Structure at the mid-management level in Corporate Development / Strategy / Finance, What's Your Five Year (IBD) Plan? A VP Reflects and Looks Forward., VC Senior Associate / VP compensation
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At a large sales/debt shop w/ a CRM thats let me see fee splits on every closed deal. Generally see folks in the Director / VP role under more senior producers getting ~ 25% - 35% of all fees. This is standard for teams where the senior broker is largely checked out but still controls key relationships. No real bonus structure, just eat what you kill. I'm a more junior "producer" and get 20% on existing relationships + 50% on anything I bring in. It's all negotiable.
Very helpful - what have you seen total comp wise in your office for junior producers that just were promoted past associate and are mostly doing execution? Obviously deal volume of the senior guys carries it, but would be helpful to know a general range.
also - i assume these roles are 100% commission? No base right?
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