When it comes to acquiring top talent in finance, you need to move fast and move smart. The most exceptional hedge fund and asset management professionals aren’t often available for long, and they need the right offers from recruiters who truly understand their passions and needs.

One more thing that’s clear—bonus season plays a huge role.

We sat down with some of our expert Front Office Finance recruiters at Tandym to learn more about the importance of bonuses in hiring and career paths, and they had plenty to share. Keep reading for some timely insights as we dive into the heart of the 2025 bonus season!

Timing of Bonus Season

Professionals often time their job changes around bonus season to maximize financial gains, leveraging high performance to negotiate better offers or sign-on bonuses from competitors. “As traders, you are not only trading and timing the products you are buying/selling, you need to also time the career as well,” says Michael Kang, a Managing Director on our Front Office team. This is where our expert recruiters can really help: “It falls on us recruiters to explain this, if any of our clients wish to bring someone on before their bonus is paid out,” explains Stephen Weiss, a Director on our Front Office team. “Our clients that are making the offer will take that into account and likely buy our professionals out of the prospective bonus they would forgo.”

Recruitment Strategies

Working together with our clients, Tandym recruiters often address potential bonus forfeitures by offering buyouts or guarantees to attract talent before their bonuses are paid out. “Clients are very familiar and experienced with hiring professionals before they receive their bonus (i.e. – mid-bonus cycle),” says Weiss. “Negotiation packages can vary, and we learn what our clients are solving for (i.e. – how much is this candidate leaving).”

Retention and Deferred Compensation

Firms use deferred bonuses and retention bonuses to retain talent, with new employers often matching these offers to attract high-performing professionals. Victor Tang, a Senior Managing Director on our Front Office team, expands on this: “It may be the case that candidates aren’t aware that hedge funds will always buy out your bonus and deferred compensation for high performing professionals.” He continues, “Many of the funds will defer a percentage of your bonus with a 3-to 4-year vesting schedule for an amount above $400-500k. The deferred can vary between 20-30%.”

Assessment of New Offers

Front Office professionals assess new offers by considering salary, payout percentage, book size, and mandate, with cash bonuses being especially appealing. “There are a few select firms that pays out all bonuses in cash,” shares Victor. “Those firms have high risk/high reward. Because front-office professionals usually like to get their bonuses in cash, we must do some selling to candidates on how the deferred bonus is a non-issue.”

Bonus Structures Across Strategies

Bonus structures and payout timings are generally consistent across different strategies, with differences mainly in deferred schedules and payout percentages based on experience. Michael Kang explains: “typically, most shops end the calendar year all around December, regardless of strategies—the deferred schedule could account for the difference.”

In the high-stakes world of hedge funds and asset management, timing a major hire around bonus season can be just as strategic as executing a trade. Understanding how firms structure bonuses, negotiate buyouts, and retain top talent is crucial for firms looking to acquire top talent and for professionals looking to maximize their financial outcomes.

Whether you’re weighing a new opportunity or looking to navigate complex compensation structures, working with an experienced recruiter in this field can make all the difference!