Two Sigma bonus deferment

New TSTC
Mar 3 35 Comments

Recruiter said 20% of bonus deferred into internal fund. Is that normal for finance/hedge fund? Not a lot of info from recruiter about it so how does that work, does it have to vest or only the gains vest? Can you see its balance and performance like you can a regular online brokerage? Can you lose it if go to other finance company with non compete?

TC - 260

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TOP 35 Comments
  • Two Sigma pci bus
    Every year, 20% of you annual bonus will go to this deferred program(eg you get 100k bonus, then 20k will go to this program) If you stay in this company over four years, then you will get 20k with gain. (Assuming every year you have 15% gain, you get 20K*1.15^4). However, if you leave early, after one year of your departure, you will get 20k without any gain. The bonus is already yours, but the gain is NOT.
    Mar 3 11
    • Two Sigma pci bus
      I guess only four years
      Mar 3
    • Two Sigma blinded99
      It gets automatically withdrawn after 4 years
      Mar 3
    • New TSTC
      OP
      Thanks. So bonus is always yours but gain must vest. Is it graded vesting, 25% each year up to 4 years but your example sounds like not graded so must stay for full 4 years to receive any gain?
      Mar 3
    • New ==<>===
      Can you opt for more than 20%?
      Mar 3
    • Two Sigma pci bus
      No
      Mar 3
    • Two Sigma blinded99
      The gains vest yearly. So on Jan 1, 2019 all gains from 2018 are vested
      Mar 4
    • Two Sigma PKsf6
      blinded99 is right. When you quit, the balance of that time (with the gain) is locked for a year, and with bank interest, you get the money after a year.
      Mar 8
    • New TSTC
      OP
      Is the amount pre-tax, so 20k total invested, or is it after-tax?
      Mar 14
    • Two Sigma zxcasdq
      If your bonus is $100k you will get $20k invested.
      Mar 14
    • New TSTC
      OP
      That’s even better then!
      Mar 15
  • Google
    tsukino

    Google

    BIO
    w
    tsukinomore
    Can you deposit more into the fund by discretion? e.g. if you wanted to invest $50k/year into 2σ
    Mar 3 5
    • Two Sigma pci bus
      No. Having money in hedge funds is kind of a privilege.
      Mar 3
    • Google
      tsukino

      Google

      BIO
      w
      tsukinomore
      Yeah that's too bad, as I was wishing there's an exception for employees because 2σ's risk-adjusted returns are quite good.
      Mar 3
    • Two Sigma pci bus
      Some trading desk (in general, I heard from other companies) may even have profit sharing. The fund ran by a PM will give a portion of profit to the team. That’s how some engineers can have very very high pay (eg over 1M)
      Mar 3
    • Two Sigma / Eng effect
      I've never heard of profit sharing at TS.
      Mar 3
    • Two Sigma pci bus
      It’s not in TS. I said “in general, I heard from other companies “
      Mar 3
  • Two Sigma pci bus
    This is almost surely better than other RSU or similar program.
    Mar 3 3
    • New F***G
      Has 2 sigma beat the comp you see on blind for FANG companies?
      Mar 3
    • Two Sigma pci bus
      Same range. Top Hedge funds are like Google/FB and “can” spend as much as they want. The question is whether they want or not.
      Mar 3
    • Google L7@AWS
      How is backend/infra SWE at TS compared to G/FB?
      Mar 3
  • New F***G
    My understanding is that the money is yours, the interest is what vests
    Mar 3 0
  • Two Sigma pci bus
    Like google except team specific oncalls
    Mar 3 4
    • New TSTC
      OP
      What teams have bad oncall load?
      Mar 3
    • Two Sigma pci bus
      I suggest you to ask HM once you get the offer.
      Mar 3
    • Facebook FGL
      Do infra teams have bad oncall load at 2s?
      Mar 3
    • Two Sigma PKsf6
      I guess so. Infra teams are same anywhere
      Mar 8
  • Two Sigma pci bus
    This is not norm in finance.
    Mar 3 2
    • New TSTC
      OP
      Not norm as in better because can share in the gain? Or worse because don’t get full bonus at time of disbursement?
      Mar 3
    • Two Sigma pci bus
      Deferred bonus is not common practice in finance. It’s good for employees
      Mar 3
  • New TSTC
    OP
    How is WLB? On the level of Google like others have said on blind?
    Mar 3 1
    • Two Sigma PKsf6
      My friends moved from G to TS say G is better, but TS is very very good. I wonder how it can be better.
      Mar 8
    • Two Sigma pci bus
      Message me for details
      Mar 3

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