[911teo]

3 years ago together with a friend we started a hedge fund.
A hedge fund is an investment vehicle that is very flexible with its trading strategies.

Basically we accept money for institutional investors and weatlhy individuals and invest it using our expertise.

The amount of money that my partner and I take home each year depends on how well we do in regards to our ivestors. Basically we have a compensation structure where we take a base fee plus a performance fee 100% linked to the profits made.

We are now expanding dramatically and we need to hire "support" people. By that I mean that we are still going to be the ones taking the risks (deciding how the money is invested) but we need more and more people around us to run administrative tasks.

For example we need a CFO, a compliance officer, a PA, someone that books all the trades done every day into our booking system etc.

Having always worked in the financial markets (trading) our compensation was always very simple and always linked to how much $$$ we would made.

Obvioulsy it is not possible for us to use the same structure for these other positions.

So I am wondering what a good CFO in a succesful (even if small) company makes. What are also the long term plans in for comp? What should be the % between salary and bonus? For example for my partner and myself the bonus is the main way we are getting paid (the performance fee is the bulk of the fees and it is calculated purely on the profits made).

But what is a good bonus? 10% of salary? 40%? 50%? Plus the company will have cash if we do well investing. But if we don't there is not going to be much left to pay people...

Is a $100k a good salary? $200k? How much should a CFO look to make in 5yr time? how much should the salary increase every year?

You see I get my motivation from the fact that if I do well trading I will make a lot of $$$. The support staff will know whether the P&L (profit and loss) is good or not. But they will not be affected much by it.

What do u guys think?