Bonuses to rise at money management firms

Bonuses in the asset management industry are expected to be 5% to 15% greater this year, according to a new study on compensation from Johnson Associates, a compensation consulting firm. The increase has been fueled by both market appreciation and net inflows at many asset management companies over the past year, said Andrew Roost, vice president at Johnson Associates. Employees at firms with equity strategies and alternative investments, particularly hedge funds, will likely see the greatest increases, said Mr. Roost. These firms are expected to pay out bonuses that are 10% to 15% greater than last year, while fixed-income firms will likely issue bonuses 5% to 8% greater, according to the report.