2012 U.S. Asset Management Compensation Report

(Greenwich Report, 8 Pages)

Base salaries for asset management professionals in the U.S. are projected to increase 3.5% and incentive pay is projected to rise by 0-10% from 2011 to 2012.

3 December 2012

Executive Summary

Greenwich Associates and Johnson Associates present the key findings of a joint 2012 U.S. Asset Management Compensation Study. Results are based on data collected by Greenwich Associates through interviews with more than 1,000 financial professionals in equity and fixed-income investor groups.

Amid relatively restrained hiring activity and industry uncertainty, Greenwich Associates and Johnson Associates have identified several trends for consideration by investment and trading professionals as they evaluate their current compensation levels and contemplate career choices. This report presents and analyzes these trends and also:

  • Presents benchmarks on 2012 compensation, including analysis of trends in asset management salaries, bonuses and long-term incentives
  • Discusses pay differentials among hedge funds and other types of asset management firms
  • Analyzes the impact of new financial service regulations on asset management compensation
  • Analyzes changes in compensation structures

Methodology
Every year, Greenwich Associates collects data on buy-side compensation levels and practices through interviews with more than 1,000 financial professionals in equity and fixed-income investor groups. The data is based on the individual responses of study participants and is self-reported. Interviews are conducted by telephone and in-person.

Johnson Associates' 2012 projections reflect estimated changes from 2011 Greenwich Associates data. Johnson Associates uses proprietary information on compensation and other industry data to project compensation levels and trends for 2012.