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.