It used to be a straight shot from what the markets did to Wall Street and asset management paychecks. This is the first year those two have diverged significantly, according to Johnson Associates’ yearly analysis of incentive compensation…
“If you look from January 1st, the markets look terrific,” said Alan Johnson, the founder and managing director of the compensation and consulting firm, in an interview. “So lower comp will be surprising to the industry. They’ll say, ‘Hey, it’s been a great year!’ But, no, not really. It depends on the time frame. if you include the fourth quarter [of 2018], it doesn’t look so good,” he added.
Johnson said the industry is decoupling from traditional measures of success anyway, such as assets under management.
Institutional Investor / November 12, 2019