ibAUM stands for “illustrative breakeven AUM”. It is used to negotiate and re-negotiate amicable base pay for ATSR who choose Probationary Period. It can help Eon Labs Ltd. estimate the amount of prop fund available to generate base pay for the ATSR who selects Probationary Period.

The motives of creating a term called ibAUM are as follows:

1. Form discussion framework.
   • ibAUM and TMAEG help form a common framework for Eon Labs Ltd. and ATSR to discuss base pay.
2. Demarcate the discussion of illustrative and actual AUM.
   • Suppose an ATSR who agrees to generate monthlyTMAEG of 10% and requires a base pay of ten-thousand (10k), Eon Labs Ltd. has to set aside at least a-hundred-thousand (100k) prop fund just enough to cover the base pay. But since the company needs time to understand more about the strategy that the ATSR offers during Probationary Period, only a small amount of actual AUM will be committed in the beginning of the employment.
3. Project allocatable prop fund due to Allotment Constraints.
   • After getting ATSR’s help to estimate a TMAEG based on Take-Home Assessment (THA) and Evaluation, Eon Labs Ltd. can have a clear idea of the minimal amount of prop fund needed to allocate to ATSR just to afford the base pay.
4. Gauge the degree of commitment.
   • For example, for strategy backtesting results that can exhibit shorter ITH with a longer historical backtesting period demonstrated during the Evaluation, Eon Labs Ltd. is more likely to offer higher ibAUM.

Related Topics:

Allotment Constraints

Fair Pay

prop fund