Incentive compensation for financial services employees is likely to increase in the next several years, according to a study by compensation consultant Johnson Associates.
The study, which looked at seven public asset management firms Franklin Resources, BlackRock, T. Rowe Price, Northern Trust, Charles Schwab, Janus and AllianceBernstein and 10 commercial and investment banks, found that increases are expected across the board, varying in magnitude with mixed business results across sectors and products.
Comparing the first six months of 2007 with the first six months of the previous year, the study found that compensation and benefits as a percentage of net revenue was slightly lower in most cases this year. However, the study predicted those figures will continue to increase in the next few months.
The study said that key drivers of bonuses include international growth, trading strategies and business mix.