Back in the old Internet bubble days, it was common for venture capitalists, investment bankers, consultants and securities lawyers to look wistfully at the paper fortunes of their young clients and feel a tug on their own latent entrepreneurial heartstrings. Many startup hangers-on sought their own Internet ventures and set up shop in myriad quickly funded ventures, most of which failed.
As expectations deflated, many of those professionals ventured into something their colleagues referred to as the new B2B and B2C - Back to Banking and Back to Consulting.
It's clearly not soaring IPO prices or vastly expanding new markets, but something is again sowing discontent among investment professionals. A study by JobSearchDigest.com surveyed professionals in the venture capital and private equity industries and found that many are dissatisfied with their compensation and are searching for greener pastures. The study also examined how industry professionals balance their lives.
Most were satisfied with an average of 3.5 weeks vacation and $224,000 in annual pay, and of nearly 400 respondents, 21% said they make more than $300,000 per year. The top 2% make more than $1 million, but nearly 75% said it's not enough.
LPs were not part of the survey, but David Kochanek, president of Job Search Digest, thinks he has a solution to the general partners' discontent - increase the carried interest.
"Some firms are trying to save money by not sharing the upside formulas," Kochanek says. "We believe there is a window of opportunity here to attract and retain top talent through better upside formulas."
Some of the firms participating in the survey included Credit Suisse Group, Labrador Ventures, Intel Capital, Mayfield, New Enterprise Associates and Softbank Capital. - Clifford Carlsen
See story from EarthTimes
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Cliff, can you please suggest me those formulas, if possible! I am on the same area.