Vice President Salary Report - Massachusetts
October 9, 2024
At A Glance
A Salary Report for Vice Presidents based in Massachusetts within the Private Equity sector.
When looking at Vice President compensation in private equity, it’s clear that the size of the firm—measured by assets under management—plays a crucial role in salary expectations. Based on data from a survey of 50 Vice Presidents, we can see distinct salary bands and bonus structures across firms of varying sizes.
<500M AUM
VPs working in firms with under $500M AUM earn between $100,000 and $250,000 per year, with a median salary of $183,182. Interestingly, 46% of VPs in these smaller firms receive a bonus of 50% or less of their salary. 60% of these professionals participate in carry, which could reflect the limited scope for wealth creation in firms of this size.
500M - 5BN AUM
As firms grow, so do the rewards. VPs in firms with AUM between 500M and 5BN see their salaries range from $150,000 to $300,000, with a median of $232,600. Bonus structures are slightly more generous here, with 45% receiving a bonus of 50% or less. In terms of long-term incentives, 100% of VPs in mid-sized firms benefit from carry or profit sharing.
>5BN AUM
In the biggest firms, the stakes—and salaries—are highest. VPs in firms managing over $5BN earn between $150,000 and $480,000, with a median salary of $260,000. Despite the larger pay checks, only 32% receive a bonus of 50% or less, signalling that many VPs in this category enjoy substantial bonuses. 100% are granted carry or profit sharing.
KEY TAKEAWAYS
Smaller firms offer lower salaries but have a slightly higher percentage of VPs participating in profit-sharing schemes.
- Mid-sized firms provide the most balanced package in terms of salary, bonus, and long-term incentives.
- Larger firms can offer the most lucrative salaries and are more competitive when it comes to carry.
Understanding these dynamics can help VPs and aspiring private equity professionals position themselves within the market and negotiate compensation packages that reflect the value they bring to their firm.
This breakdown underscores the importance of firm size in shaping compensation strategies in private equity, giving professionals insight into what they can expect as they climb the ranks in this highly competitive industry.
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