Average total compensation for senior fixed-income portfolio managers fell 6% in 2001, while the average for their equity counterparts slipped 2% even though bonds outperformed stocks during the year, according to a survey by Capital Resource Advisors. "Were not sure why that is, said Jim Kranz, CRA senior vice president.
Total pay for CEOs at money management firms last year was cut in half, on average, due to a major decline in bonuses, the survey also found. While average salaries for money management CEOs rose 7% over the previous year, "that gain was overwhelmed by bonuses that plunged a formidable 67%, CRA reports in preliminary results of the survey. Complete findings are expected to be released later this month.
The average money management companys profit margin (earnings before interest and taxes divided by revenues) was 25.6% in 2001, compared with 31.4% in 2000, he said.