Using Under-Market Comp as a Reason to Move Jobs in Interviews
I work for a LMM PE firm at the mid-level and am undercompensated relative to market by ~30%, even after factoring in fund size. This is on both a carry and cash comp basis.
I've made several attempts to ask them to bridge the gap and pointed to my contributions to the firm, what 'market' is, etc, with little success.
As such, I am starting to think about moving to a new firm. If I do so, I'd be giving up carry (albeit not very much), and will need a good reason to be looking.
Is using "I'm underpaid compared to what I'm worth" a viable reason to use in an interview? It's a bit blunt, but also true.
Comments ( 8 )
good to be direct so there's no confusion from either sides
I think that would rub folks the wrong way, with the natural thought being "this person is just here for the money, not long term."
I understand how stupid that is, because if anyone offered any of your interviewers more comp, they would leave too. It's very stupid, so don't argue with me about that point.
A better way to approach it is just to talk about how selective your process has been, you enjoy your time where you're at now but want something more [insert something firm you're interviewing at is proud of].
Keep it focused on why you're awesome.
I disagree particularly around carry if you couch it properly. You should say you were promised a range and despite performance, deal closing, and fund raising theyre well south and keep promising things years out, you've tried to discuss but no avail. And it signals a lack of both willingness to invest in talent which makes you doubt your long term trajectory. Don't even mention cash.
I wouldn't use higher comp as the reason. It's bad form and doesn't show interest in the job you are interviewing with. Many of us interview because we think we are underpaid relative to the market- we just find reasons prior to the interview why we are a good fit and interested in the firm and position that we are interviewing for. We had one guy basically say he wanted more money once- we all laughed behind his back. It's an automatic ding hard no for most groups.
Probably not the right response in the actual job interview ...but certainly a very good reason to look for a new firm and get paid what you're worth.
Headhunters will understand more.
300+ video lessons across 6 modeling courses taught by elite practitioners at the top investment banks and private equity funds -- Excel Modeling -- Financial Statement Modeling -- M&A Modeling -- LBO Modeling -- DCF and Valuation Modeling -- ALL INCLUDED + 2 Huge Bonuses.
Learn moreDefinitely don't recommend. If you're (I'm making this up) paid 25% below market, and you tell a prospective employer that, you're giving them license to pay you 10% below market and argue that it's a big pay bump for you
All feedback helpful, thank you
Suscipit ipsa itaque minus quas voluptatum. Aspernatur nobis labore voluptas sequi error qui voluptatem. Velit commodi assumenda similique. Repudiandae ea necessitatibus enim magni dolore debitis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...