‘Moderate’ money management bonuses in 2012, consultant says

Bonus payouts by traditional and alternative money management firms look set to rise “moderately” in 2012, as market appreciation makes up somewhat for stagnant net flows, according to a report Wednesday by compensation consulting firm Johnson Associates.

In a telephone interview, Alan M. Johnson, managing director, called the environment for money management firms so far this year “mildly positive” but “fragile.”

Johnson Associates is predicting bonuses for traditional managers of equities and fixed income should rise 5% to 10% from 2011.

With hedge fund firms enjoying some positive inflows, the firm predicts bonuses there could rise 5% to 15%. The report cited a relatively challenging environment facing private equity firms in predicting bonuses that will come in between flat and up 5% from the year before.

Even with 2012 looking to be the third year in a row of gains, incentive payouts remain well below the highs reached in 2007, the report said.