Call —
Transcript batch
0:00 Caller: Hi, Jed. Sorry. So I'll be fairly quick. I'll just caught off the phone with Ben. Ben said pretty much the best way to approach this is we should give Elliot the numbers. Just out of transparency to let them know what numbers they're pretty much competing with. It's not going to show, it's not going to change this type of conversation you're going to have tomorrow. It's not going to change anything.
0:00 You: This call will be recorded.
0:05 You: Hello.
0:30 Caller: He's done this with them a lot. It's just so that they can get their docs in a row and know how they want to approach it directly after the call so that it pretty much speeds up the whole process for them. It puts you in an ideal situation because it pretty much takes out the whole idea of a bidding war and just lets them put a number in front of you that they feel is actually worth it and is in comparison to what you already have in front of you, just out of transparency for them.
0:30 You: So Ben is in, Ben's intent is for a best and final, no multiple rounds of bidding.
1:00 Caller: Yeah, pretty much. It's just like put your numbers across that you've got already. We'll give them to Elliot for full transparency and they'll be able to give you the number that they think is flat out what they think is okay for now. And he wanted me to let you know, just because I did mention to him the PE firm and the carry bonuses and how that works. He did say, look, at the end of the day, your first year bonus at Elion is not going to be the same bonus. You're going to earn the year after and the year after and the year after. The first year bonus and the first couple of
1:00 You: Thank you.
1:03 You: Thank you.
1:04 You: Thank you.
1:30 Caller: is just to get you something that you're comfortable with.
1:32 Caller: Having worked with tech people at these elite test funds, what's going to happen is once you have done your function, once you have kind of completed your goal, your carry is going to increase significantly, you're not going to be at a position whereby 600K is a number that you're considering, but you're rather looking higher than that.
1:34 You: Thank you.
1:49 Caller: So don't look at it as essentially this is the number that you're going to be on for the next, you know, five, six, seven years, something like I've had, look at it as this is probably,
2:00 Caller: the two-year ceiling and then after that the ceiling is going to change and after that the ceiling
2:04 You: Ceilings go up and down, Graham.
2:04 Caller: is going to change again it's just that this is where they're starting off that it's a 70 billion
2:10 Caller: dollar hedge fund yeah yeah i get that i get that i get that i get that but that was his take
2:16 Caller: pretty much on the on the idea of the carry and the number being kind of high it would say we're dealing with
2:23 Caller: a pretty elite fund so tomorrow you're pretty much going to get a lot of answers on longevity
2:30 Caller: where the role is going to evolve to but also it will give you an idea of the kind of
2:34 You: Oh, I agree.
2:35 Caller: kind of seat you're going to have and how far the earning potential can be should it progress
2:40 Caller: beyond a five-six-year period so on that note you just said that i mean yeah it can
2:46 Caller: obviously go up and down but that can also be flipped on on the PE role as well it can be flipped
2:50 Caller: on any of the offers but for this one specifically yeah yeah yeah yeah
2:51 You: The P.
2:52 You: The P.
2:53 You: F.
2:54 You: Unfortunately, my crystal ball is particularly shiny.
2:58 You: So I'm working with a series of Monte Carlo algorithms at the moment.
3:00 Caller: yeah so yeah i think with all of that that that was just kind of the point
3:04 You: I still have Claude Fable to try and figure out what is the modal or the most probable outcome.
3:15 Caller: that we've come to so is that okay with you that we present the numbers to elliot specifically
3:22 Caller: to jim jim will have those and we'll take those into consideration while they're pretty much
3:27 Caller: can well they're doing the final tomorrow and then once that call is done ben predicts there'll be
3:34 You: So what do you think?
3:34 Caller: one i mean once that meeting is done ben predicts there'll be a final kind of just sanity check
3:39 Caller: call to see where your heads are after everything and then likely they would want to put a number down
3:41 You: So what figures do you think, does Ben think Elliot needs for them to put a best in final?
3:43 Caller: so just to fine tune everything we'd rather they have all the numbers so that they know if they
3:48 Caller: have a flat number that they can think is competitive enough to blow the others out of the water
3:52 Caller: but at the same time good enough to keep you happy then they have to just do it in one guy
3:57 Caller: just just the transparent number on your offers yeah just headline number and
4:04 You: Just the headline numbers or breakdowns?
4:11 You: Should I include caveats to the
4:11 Caller: whatever you feel essentially are the most important points to the numbers that you're
4:15 Caller: going to receive that's important to us and then we'll pass someone yeah yeah yeah
4:21 You: different numbers?
4:22 You: For example, the startup is a four-year cliff, so it's based off of a valuation.
4:27 Caller: yeah i think i think having yeah i think having been in process with jim long enough now
4:28 You: It's basis points against a billion-dollar plus valuation.
4:32 You: versus PE fund where it's the carry risk.
4:37 You: I assume Jim understands how carry works there.
4:45 Caller: and having done the millions of backs and points we've done i think as much detail as possible
4:51 Caller: is great because we just want to give it all to jim and his team so that they can look at it and
4:57 Caller: and be like okay we understand the full picture and we'll make a decision off of this full picture
5:02 You: What's the risk of them withdrawing if they feel they cannot compete against those figures?
5:03 Caller: rather than us having to go back and forth and saying this and that you know what i mean
5:12 Caller: they definitely feel they can compete i will tell you that um we know the kind of limits to their
5:18 Caller: number and we know they can compete like we've known the range has been between a 400 and
5:27 Caller: point for them um so it's just about putting that in front of them and just saying okay guys
5:32 You: If you know the limits, where are they?
5:32 Caller: we need you to to pretty much put something here that we know jed will be happy with and you will
5:36 Caller: be happy with um like because the yeah i think it's the 700 band um it's just that like we know
5:39 You: Is it just that four to 700 band?
5:42 You: Understood.
5:47 You: Ben touts on his LinkedIn profile how proud he is getting technology
5:47 Caller: that four to 700 is pretty much their maxed out limit
5:56 You: in the 500 range.
5:57 Caller: no then there's like recruiter lingo you don't want to put your client's
5:58 You: Is that his cap or is he looking to break his record?
6:01 You: Thank you.
6:02 You: Thank you.
6:03 You: Thank you.
6:04 You: I.
6:05 You: Thank you.
6:07 You: Thank you.
6:07 Caller: peak number at the top of everything because at the end of the day it's your client's
6:09 You: Thank you.
6:11 You: Thank you.
6:12 Caller: peak number you want to manage people's expectations the right way i don't want to tell you a number
6:13 You: Thank you.
6:15 You: Thank you.
6:16 You: Thank you
6:17 Caller: that i'll say like for example we don't want to tell you that the maximum number is 700k and then you
6:22 Caller: you target 700k and then we're both disappointed when elia come back and say they're not going to give you
6:26 Caller: 700k because it doesn't make sense for them so we have to put a number down that is realistic
6:31 Caller: that we know if somebody top of the band from like uh two sigma because two sigma will pay somebody a
6:35 Caller: million yearly for that job then obviously to make them move the number changes because
6:42 Caller: eliot would probably entertain a conversation they'd be like okay if they're the right person or a 77 billion
6:46 You: Thank you
6:48 You: Thank you
6:48 Caller: at um fund we can find the money from somewhere but it's not about money in this scenario it's
6:50 You: Thank you
6:52 You: Thank you
6:54 You: Thank you
6:56 You: I
6:56 Caller: about just level-headed integrity and understanding that you know there's colleagues there's
6:58 You: Thank you
7:02 Caller: people you work with nobody's going to be paid like 700k when their boss is earning 600 something
7:05 You: Thank you
7:06 You: Thank you
7:08 You: Thank you
7:08 Caller: like that you get what i mean that there always has to be kind of caveat as to how things are structured
7:10 You: Thank you
7:14 Caller: in a fund so that there isn't a serious compliance issue or HR complaint whereby it's two people
7:17 You: Thank you
7:18 You: Thank you
7:20 You: Thank you
7:22 You: Thank you.
7:22 Caller: are working the exact same job but one is getting played extortionately high
7:24 You: Thank you.
7:26 You: Thank you.
7:26 Caller: than the other one it doesn't make sense so there obviously has to be justifiable means to
7:27 You: Thank you.
7:28 You: Thank you.
7:33 Caller: to say that we're paying this person this because this is what essentially we've had to deal with in
7:39 Caller: this process so in your case we know jell would be happy with 400k but he's got three other offers
7:45 Caller: that are completely different in nature and if we need to guarantee how we're going to land him
7:50 Caller: we need to think of a way to essentially structure it that it almost guarantees him he would make the
7:55 Caller: the amount of money that he's looking to make at these other shops in the future or now
7:58 You: I deserve is such a funny term.
7:58 Caller: at the same time he's going to be at a place that's happily paying him what he's worth because
8:02 Caller: everybody here gets paid you know the amount that they deserve for the reasons that they
8:07 Caller: deserve it that's kind of how we have to deal with it as recruiters in that sense
8:15 You: I acknowledge that there is a spread or an arbitrage or a margin between employee output and what they earn.
8:17 Caller: yeah i know deserve it's yeah
8:23 You: I recognize Elliot cannot invert that spread.
8:25 Caller: yeah and eventually anybody you would hire you get what i mean you get what i mean so it it would be something
8:26 You: So I'm sure there's some.
8:27 You: So I'm sure there's something they can come up with to set a consistent spread across not just myself, but anyone else who I'd potentially be working with.
8:42 You: Yes, but I believe Brett was the one who was reserving hiring into the team.
8:49 You: So Brett makes the final say, but this seat has a veto. That was it.
8:55 Caller: yeah okay so is that all right with you
8:57 You: I see. Okay.
9:04 You: So I will weigh what I'm willing to share.
9:05 Caller: mm-hmm okay perfect thank you
9:09 You: Hopefully they can't reverse it.
9:11 You: And then you'll have that summary shortly.