VP Salaries/comp - Acquisitions or Asset management
Have a comp discussion with my boss and trying to negotiate my base up. I work for a small shop &lt;10 people in a major coastal city who does value add and ground up and I am the number three person after the founding partners. Run all investment activities including all underwriting/sourcing/approving deals/running due diligence, and working with one of the partners to raise debt/close. Also run asset management and some development management. We are about to triple our AUM with a number of very large deals.

Would appreciate any insight from others on experience, base/bonus/any promote in deals.

Thanks!
[{"id": "if1i2nz", "text": "You should focus on getting a piece of the upcoming large deals and those into the future and not boosting salary as much as possible. Base of 150-250k plus carry on the promote (if all outside equity). A good argument w the principals is that with a piece of the deal your interests will be aligned with the company\u2019s profits and it will incentivize you to stay with them long term", "replies": [{"id": "if2bh6m", "text": "Based on OP description of their performance and with the base salary you mentioned what percentage (or range) would be appropriate ?", "replies": [{"id": "if2r7c2", "text": "No, it depends on the actual size of these deals/portfolio but 150 is super super low if they are actually \u201cvery large\u201d as OP says. Someone doing everything OP is doing should be making at least 400 base in LA, they are basically C-suite if they are running all investment activities plus AM. \n\nAgain, entirely depends on the actual size of the deals. \u201cVery large\u201d can mean a lot of things. Regardless, he should be one of the highest salaried employees of the firm.", "replies": [{"id": "if34c9j", "text": "Sorry some small and some large. 100-200 unit new construction deals and then 50-100 unit value add.", "replies": [{"id": "if3dov3", "text": "Really would have to know a lot more that you should not share here to determine a fair salary but if aum is $100m+ you should be making over 300 base at the very least", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "if34oc5", "text": "I get 4% of the promote and a small portion of Acq fees, but these are long term holds so then promote doesn't really help. Should this vest in that I would still get it if I leave or only if I'm still there? Didn't negotiate that yet.", "replies": [{"id": "if3c3rm", "text": "Yes it should vest and you need to get it papered with the principals not just a verbal agreement. Hard to advise on the % because the promote structure and tiers have a more significant impact. Best to run a conservative proforma yourself and calculate in the waterfall what that promote is worth in 5 years. Emphasis on conservative proforma not just what you used to source equity.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "if49lbz", "text": "AUM can be a misleading term that doesn\u2019t equate to the actual profit the company makes. Not sure if people shouting out base numbers is a good metric. \n\nRegardless, you should really be negotiating a piece of the deal aka ownership percentage. This is worth more and taxed more favorably than W2 income. A couple ways would be a fixed percentage that scales with purchase price or development cost.\n\nInclude the option to defer the acquisition fee into the deal as well for a higher percentage. They may be in favor of a delayed payment on sell of the property rather than an out of pocket expense for the fee.", "replies": [{"id": "if4ay9z", "text": "So a piece of the GP that would vest? I can put in money as an LP but the returns are obviously different.", "replies": [{"id": "if4d0fw", "text": "Any chance they\u2019ll be willing to consider any equity you put in under the GP\u2019s portion of the structure?", "replies": [{"id": "if4f65w", "text": "That's one thing I'm going to discuss.", "replies": [], "depth": 4}], "depth": 3}, {"id": "if4j5co", "text": "Yes, part of the GP and the option to roll what you would make on the acquisition fee into the deal as an additional percentage of the GP.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]