PFP stands for “Pay-for-Performance”.

Pay-for-Performance is a bonus compensation component of the Base & Bonus Pay directly tied to MSA trading performance and its risk control management. Unlike the base pay component, PFP is calculated based on the actual AUM instead of the ibAUM.

At Eon Labs Ltd., all ATSR are given the option to choose Employment or Partnership before they begin trading the MSA. If they pick the former, it means that their Probationary Period will be paid by the Base & Bonus Pay.

The PFP component of the employee compensation plan is going to be negotiated as a curbed version of Profit Sharing because a “risk-free” base pay is received by the ATSR already. The curbs will be reflected as follows:

• ATSR Fee (the percentage of Excess Gain) sharable reduced to
  • 5–25% for prop fund
  • 2–15% for institutional client funds
• Withholding of ATSR Fee percentage to SNRF increased to
  • 60–95% (stronger safety net against MDD)
• Disbursement of SNRF period in arrears lengthened to
  • 9–15 months (delayed as a retention bonus of sort)

Scenario. Feel free to copy this ‣ to your own Google Workplace to find out more about how SNRF is structured to balance the interests of ATSR and Eon Labs Ltd.. Also, check out the Fair Pay page for more info.

What Is an Employee Pay-for-Performance Compensation Plan?

(By Indeed Editorial Team)

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