Private equity industry pay could drop by 15% this year, says Alan Johnson, a compensation consultant and founder of Johnson Associates. The most dramatic shift will be in carried interest, which has “evaporated” in the wake of the economic downturn, he added.

Johnson says there is a silver lining in that private equity owners and managers will be pushed harder to extract more performance from the businesses they own.

Older executives, who have been in the industry for decades and have been through previous downturns, will have seen pay rise and fall in the past. For the younger and mid-level employees, the drop in pay will be a bigger shock, he adds.

Financial News / April 27, 2020