Bonuses in the money management industry are expected to rise 10% to 15% this year, according to a new study of recruiting and compensation by Jamesbeck Global Partners. Also, the most active areas for hiring in the United States this year have been in distribution, client services and value portfolio management. In the United Kingdom, the most active area has been fixed-income portfolio management, according to the survey.
As for compensation, CEOs of global money managers with more than $100 billion under management typically earn more than $5 million a year, Jamesbeck reported. CIOs of firms with more than $100 billion under management earn between $2 million and $4 million per year.
Equity portfolio managers of top-quartile portfolios with more than $10 billion under management are being paid more than $2.5 million annually. Top quartile portfolio managers running $2 billion to $10 billion earn between $1.5 million and $2.5 million a year. Fixed-income portfolio managers are earning much less than their equity brethren, with annual incomes between $400,000 and $800,000, although that figure tends to increase if the manager handles more than $10 billion.