3rd Quarter 2016

Johnson Associates

Compensation Trends and Projections

November 2016

Incentive compensation for asset management is expected to decrease modestly for the second year. Major investment & commercial banking firms down across most businesses. Hedge fund incentives expected to decline for third year on lackluster performance. Private equity incentives flat with mediocre returns and fewer investment opportunities created by higher market valuations. Alternatives continue to be the beneficiary of investors seeking returns, but go-forward results challenged by increasing dry powder and competition for lucrative deals.