Managers’ Incentive Pay to Grow, Outpacing Banks

Strong investment performance and positive inflows will translate into more money in the pockets of asset management firm executives in 2014, new research has found….

“The increases in pay in the asset management business make it one of the most attractive parts of financial services,” says Alan Johnson, managing director of compensation consulting firm Johnson Associates….

Firms are moving away from compensation plans based solely on commission and adopting a “hybrid” model that includes commissions and some discretion, Johnson says. “The contribution [of sales people isn’t as obvious] as it was before,” he says. “That is an important change in the industry.”…

FundFire / December 12, 2014