“The investment industry is behind the times and resisting change,” said Alan Johnson, managing director and president of Johnson Associates Inc., New York, a money manager compensation consultant.

Mr. Johnson said the current “belt-tightening” the industry is undergoing will inevitably reduce the total headcount as managers rationalize and retrench their businesses by shedding “half-hearted” investment strategies, rethinking earlier geographic expansions and renewing their focus on better aligning compensation and incentives.

The result of cost-cutting measures likely will result in an overall 5% decline in money management compensation in 2019, according to Johnson Associates’ estimate.

Pensions & Investments / April 1, 2019