Average total compensation for money management CEOs in the U.K. grew 6.8% in two years, to almost £1.6 million ($2 million), according to research by global executive search firm Hoffmann Reed.
The firm, which advises money managers, pension funds and other investors on board and executive searches, analyzed data from across 500 asset managers in the U.K. — ranging from boutiques to large, established managers — between Jan. 1 and June 30 for its Asset Management Salary Guide 2023. The previous guide was published in 2021.
The highest-paid CEO included in the survey earned a total £6,557,000, up 5.3% vs. 2021 figures.
Total compensation was up across major money management roles. The average CIO package of bonus, base salary and other benefits such as retirement plan contributions was £867,763 in 2023, up 7%. The highest-paid CIO in the sample earned £1,399,120 in 2023, up 5.9%.
A head of institutional sales, meanwhile, picked up an average total compensation package of £293,762 in 2023 — up 8.1% over the two years; while the highest-paid executive in such a role earned £345,483, up 4% over the period.
"We saw strong salary growth generally last year, (although it was) impacted by the cost-of-living crisis," Paul Battye, CEO of Hoffmann Reed, said in an interview. "Since our last report, salaries have grown 6.1% for lower earners vs. 3% for senior leaders, on average."
In terms of salary trends, Hoffmann Reed saw "candidate shortages — that pushed up starting salaries for new people, plus pushed up salaries for retention. There was a leveling-up on (diversity, equity and inclusion.) We also saw increased demand for specialist knowledge — as more and more complicated products (are being used,) you need more specialist knowledge," Mr. Battye said.
In terms of wider industry trends, Mr. Battye said he's seeing findings of a recent PwC report in action, which said that one-in-six global asset and wealth managers won't exist in the next five years.
"This is reflected in a trend of fund managers asking us to do team liftouts or identify potential M&A activity for them. They want to acquire teams rather than businesses, although in some instances, they've very much asked us to look at what businesses might be available. The market's the busiest it's been from a team liftout and M&A perspective since the GFC," Mr. Battye added.
The guide is available on the Hoffmann Reed website. Registration is required.
