San Diego, CA (PRWEB) April 23, 2013
According to the recently released 2013 Private Equity & Venture Capital Compensation Report, private equity professionals have enjoyed three years of increasing compensation – but are they happy in their positions? The 6th annual survey looked beyond the growing base salaries and bonuses reported by participants to explore work culture and job satisfaction in the PE industry. Despite routinely working long hours, most respondents reported satisfaction with not only their compensation, but also the balance between their work and personal lives. Other positive findings from the survey, which includes data collected from hundreds of financial professionals, point to generous benefits and high levels of job security.
The 2013 Private Equity Compensation Report identified a significant increase, to 56 percent, in the number of respondents who are happy with their compensation packages. This number is up from 36 percent two years ago.
When asked about the number of hours worked weekly, 71 percent of respondents reported they averaged between 50 and 79 hours. Interestingly, only 4 percent reported working more than 80 hours per week, and 2 percent reported working less than 40 hours weekly.
To put these figures in perspective, the 2013 Private Equity Compensation Report found that analysts and associates in the investment banking industry routinely log in 80 to 100 hours each week. However, data from the Bureau of Labor Statistics indicate that employees in privately owned, non-farm businesses average just 34 hours of work per week.
“Though private equity professionals generally work long weeks, few seem to be complaining,” said David Kochanek, the report’s publisher. “In fact, 85% reported an average to excellent work/life balance.” 46 percent of respondents reported above average to excellent balance in their work and personal lives, and 39 percent experienced an average balance. Just 15 percent reported experiencing below average to poor balance between work and personal lives.
The generous vacation policies of many PE firms may contribute to satisfaction levels with work/life balance. The vast majority of survey respondents, 80 percent, reported earning vacations of three weeks or longer, while more than 54 percent earned four weeks or more in vacation time. These findings are liberal when compared to other U.S. industries.
“According to this year’s survey, job security seems to be another factor positively influencing job satisfaction,” said Kochanek. Among respondents, 55 percent were not concerned at all with job security. “A number of factors contribute to their sense of confidence,” explained Kochanek. “30% said the structure of their firm added to their job security, and 32% cited firm performance as contributing to job security.”
Other respondents didn’t share the same confidence in job security, with 40 percent stating they were somewhat concerned, and 5 percent that they were very concerned. Among these, 45 percent pointed to fundraising as their primary source of concern, while 29% were troubled by the state of the markets.
The 2013 Private Equity Compensation Report is based on an industry survey conducted in October and November 2012. Data was collected directly from hundreds of private equity and venture capital partners and employees. The full report can be found at http://www.PrivateEquityCompensation.com.
The Report has grown to be the most comprehensive benchmark for private equity and venture capital compensation practices. Some of the participating firms over the years include: Actis, American Capital, Bain Capital, Battery Ventures, BlackRock, Carlyle, Century Capital Management, Cerberus, Comcast Ventures, DuPont Capital Management, EdgeStone Capital Partners, GE, Highland Capital Partners, Hilco Consumer Capital, Intel Capital, Mission Ventures, Mohr Davidow Ventures, North Atlantic Capital, RBS, Safeguard Scientifics, SV Life Sciences, Siemens Venture Capital, and Wellington Partners.
PrivateEquityCompensation.com is a division of Job Search Digest, a web-based career service catering to professionals in private equity, venture capital, and investment banking since 2002. Annually, the firm collects compensation data directly from hundreds of private equity and venture capital partners and employees from firms both large and small. The firm also publishes a blog on private equity and VC careers that can be found at InsideTheFirm.com.