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Komfie Manalo, Opalesque Asia: Strong performance in the financial management sector has pushed up incentive compensation in the asset management industry, according to a new report, Asset Management Compensation: Second Choice No More, from Greenwich Associates and Johnson Associates.
"These ongoing positive trends are making asset management more appealing as a career choice for financial professionals, relative to a sell side that is still plagued by reduced compensation on results, intense regulation and somewhat diminished social status," says Greenwich Associates analyst Kevin Kozlowski.
Amongst the report’s findings were:
- 2014 incentive compensation at traditional asset management firms to increase 5–10%, with equity products outpacing fixed income.
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Salaries will increase 3–3.5%, including merit and promotional budgets.
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Incentive compensation among hedge funds will vary much more widely, reflecting performance volatility from strategy to strategy and firm to firm.
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Employees at underperforming hedge funds can expect to see incentive compensation that is flat to down 5%, while incentives at better performers are projected to increase by up to 5% and perhaps higher for top performers on average.
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Modest turnover and hiring, but clear emphasis on performance management and pay differentiation.
Nevertheless, job turnover rates remain near historic lows, despit...................... To view our full article Click here
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