PE Barons Are No Longer Filthy Stinking Rich

Glocap and Thomson Reuters released their private equity compensation report this week, but unlike last year, they’re not sharing even a tiny bit of detailed information beyond the press release. A bit frustrating since peHUB is also published by Thomson Reuters, but here’s the most interesting tidbits we can report:

-Growth in private equity salaries has officially stopped. Abruptly even. You may remember last year that, despite market turmoil and massive layoffs in the finance sector, buyout firms still managed to give themselves raises. That’s no longer the case, Glocap has found. “While some funds are keeping compensation flat, the net result is that compensation across all segments of the market is trending down,” the report states. That includes venture firms, buyout shops, growth investors, and funds of funds.

-The largest decline occurred for associates at the mega-firms, who saw their average compensation fall 10% to $275,000. That same position earned 6% year over year in 2008, and got a 22% bump in the year prior.

-Venture capitalists did not see their salaries decline as much as buyout pros did. Glocap explains that that is because VC firms don’t charge transaction fees and therefore were less impacted by the drop in deal activity. Downward shifts in both the venture world and private equity affected bonuses primarily.

Previously: PE Won’t Kiss Bonuses Goodbye

New PE Compensation Report: No Exits, No Problem