Asset Management Compensation: Second Choice No More

Johnson Associates & Greenwich Associates Joint Report: Asset Management Compensation Study

December 2014

Asset managers have had another strong year in 2014.  Market appreciation and positive inflows boosted AUM for traditional firms, while hedge fund AUM continued to grow despite mixed results. Across the industry, this performance has pushed up incentive compensation.  Greenwich Associates and Johnson Associates project increases in traditional asset management firms of 5% – 10%, with equity products outpacing fixed income.  Ongoing positive trends are making asset management more appealing as a career choice for financial professionals, relative to a sell side that is still plagued by reduced compensation on results, intense regulation and somewhat diminished social status.