Money management professionals can expect to see anywhere between no change and a 10% jump from last year's bonus payouts, according to projections from compensation consultant Johnson Associates.
This is down from the projected 5% to 10% jump expected in 2014 from the year before.
“Incentive compensation for traditional asset management is again projected to increase, albeit modestly, while alternatives is projected to increase more substantially,” the report said about the projections.
Incentives are expected to rise modestly due to small increases in average assets under management, the report said. These increases in AUM are due primarily to market appreciation and net inflows in both equities and fixed income.
Additionally, low-cost alternatives, such as index funds and exchange-traded funds, have begun to put pressure on fees.
Incentive payouts for professionals in private equity is expected to rise anywhere from 10% to 15%, while professionals in the hedge fund industry can expect an increase of anywhere between 5% and 10% from last year's bonus.
The projections are based on first-quarter trends in the financial services industry.