Mergers and acquisitions are prompting asset managers to reevaluate compensation — a process that can cause key personnel to flee if new pay plans don’t live up to their expectations.
Typically when asset management firms merge, they try to combine their compensation structures, says Alan Johnson, managing director at Johnson Associates, a compensation consultancy.
“If you’ve got enough time to work on it, you try to say, ‘let’s try to get the best of each one of them so they may not simply be choosing one or the other [but] … the best pieces of each one of the two firms.’”
Fund Fire / July 1, 2019