Hedge fund CIOs and CEOs received total compensation of more than $2.7 million each this year, according to a survey of hedge funds and hedge funds of funds with at least $500 million under management. Hedge fund researcher Infovest21 conducted the survey of more than 50 hedge fund and fund-of-funds managers in the fourth quarter, on behalf of executive recruiter Korn/Ferry International.
The survey found that COOs ranked third in pay among hedge fund executives with average compensation of more than $1.2 million this year. CFOs and portfolio managers both averaged $800,000 in total compensation, and sales directors, head traders and research directors all averaged between $400,000 and $600,000.
The survey found that hedge fund compensation trended upward this year. Base salaries were fairly stable, but bonus percentage payouts were up, with companies trying to hang on to their best investment managers and analysts. Infovest21 researchers also found that hiring activity was up in 2004, especially in the areas of trading, commodity product strategies and long/short equity management.