Money management incentive compensation should increase by 15% to 20% this year, according to a report by compensation consulting boutique Johnson Associates.
For some publicly listed money managers covered by the firm’s survey, the jump in compensation could come to 30% — above the gains by firms in other financial services sectors, the report said. However, employees at commercial and investment banks saw their incentive compensation rebound in 2009, when money manager compensation was still declining, the report noted.
The report projected that employees of equity-focused firms could see average incentive compensation gains of about 20%, while fixed-income-focused firms could see 15% gains.
A growing number of hedge funds, meanwhile, have begun surpassing their previous high-water marks for total value of their funds, setting the stage for greater compensation gains.