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What does the TC progression look like for a software engineer at a prop trading firm / hedge fund?

E.G. Citadel, Optiver, Five Rings, Jump Trading, Two Sigma, TRC, HRT, etc. How does TC progress year after year? Is there a leveling system? TC: ~280K YOE: 3

Unity FriezaSama Mar 28

Following

Amazon dfdsltr Mar 28

Just hit the little bell on the top right fam

Unity FriezaSama Mar 28

Thanks bro

Two Sigma 2sg Mar 28

At two sigma, it starts at 275k for fresh grads, and then yearly increase is15-20%

Chicago Trading Company 22SAS Mar 28

How does firm performance account for that? Would it be 15-20% in a down year as well?

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UdnH18 Mar 28

Firms like this don't have "down" years. Also, it's not a steady %/year ... if you increase level then it's bigger; if you stay the same level it's more-or-less cost of living.

Two Sigma BJdY39 Mar 29

People ask this question every few months. You can search what people have said. The TL/DR is no one knows. It varies on individual performance and firm performance. After you've been around a while 1m+ TC is possible. None of this applies to Two Sigma, which is probably closer to Google than top trading firms

Hudson River Trading c++69 Mar 29

Yeah, for a hire to a non-management position, your TC is directly correlated to your impact

Optiver IkQp81 Mar 29

Yea this question pops up every month and no one is ever satisfied with the answer. In tech its dead simple. Level X has a definitive rubric on how to get there, and some comp band where you can accurately gauge how much you'll earn for below, at, and above average performance. At a big tech co, you can also generally assume that your equity appreciates at like ~10-15% YoY. In trading, its slightly more complex. Some questions that you have to gauge if you're in trading: - What is the structure of your firm? - How are bonuses dealt (split of pod profits/split of overall firm profits, subjective based on "impact"?)? - [important] What team are you on? - [important] How good are you? - [important] did you deliver impactful features (ideally to PnL generation or something closely adjacent)? - How was the overall performance of your firm this year? Imagine if >60% of your compensation in tech was tied to how much your individual team (and you) contributed to the bottom line of the company. Thats what some trading firms are pretty much like.