Money management firms have been on a "hiring binge," adding a number of institutional sales professionals last year, according to a new survey from executive search firm Sextant Partners. The largest money management firms - those with more than $75 billion in institutional assets under management - reported increasing their institutional sales staffs by a combined 44% in 2005, compared with a 9% increase in 2004.
The largest firms now have an average of 15 institutional sales professionals, up from 10 at the end of last year. Midsize firms - with $10 billion to $75 billion in assets under management - now have an average staff of eight institutional salesmen, up 15% from the previous year. Smaller money managers - with less than $10 billion in assets under management - did not report any increase and still have an average of three institutional sales professionals.
Compensation for the leaders of institutional sales varied significantly based on the size of the firm. The average head of institutional sales earned $1.3 million last year, according to the survey. The average head of institutional sales at large money managers earned $4.6 million, while midsize firms paid institutional sales leaders an average salary of $933,000, and small money managers paid their heads of institutional sales an average of $861,000.