Asset manager remuneration has increased by an average of 18% over the last year, according to research by PricewaterhouseCoopers (PWC).
The Paying a premium for the best investment professionals asset management reward survey 2011 found that employers’ salary bills have increased by an average of 4%.
Compared with 2010, compensation as a percentage of net revenues and bonus costs as a percentage of pre-bonus operating profit have remained fairly constant.
This year’s median compensation as a percentage of net revenues was 42%, the same as in the 2010 survey, and bonus costs as a percentage of pre-bonus operating profit were 34%, compared to 38% in 2010.
Tim Wright, remuneration director at PWC, said: “Asset manager pay has increased for the second year in a row although this is underpinned by improvements in profitability.
“Increases have not been across the board. There is noticeable differentiation this year with fund managers benefiting more than sales staff.
“This reflects pressure in the markets; fund managers have performed to protect and grow the investments they have, exactly what they are measured against, but market uncertainty resulted in pockets of poor sales activity, which affected sales-related incentives.
“It has been tough to bring new assets through the door and the focus was on retaining existing money, trying to stem the tide.
“The recent financial market volatility also means organisations will face a headache at the end of the year. Many fund managers have delivered investment performance in 2011 but market turmoil is going to hit many organisations’ bottom line, putting them in a tricky position with remuneration.”
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