Managers Realizing That a New World Needs New People

“The investment industry is behind the times and resisting change,” said Alan Johnson, managing director and president of Johnson Associates Inc., New York, a money manager compensation consultant. Mr. Johnson said the current “belt-tightening” the industry is undergoing will inevitably reduce the total headcount as managers rationalize and retrench their businesses by shedding “half-hearted” investment…

“Kind of Inevitable” – Wells Fargo CEO Departs

Alan Johnson, founder of compensation consultancy Johnson Associates, calls Sloan’s announced departure “kind of inevitable.” He says it is likely the board has been seeking replacements in recent months, and hopefully isn’t reacting only to Sloan’s testimony before Congress several weeks ago. Johnson believes the most logical successor for Sloan will be an executive at…

Wall Street Average Bonus Slid 17% in 2018, New York State Says

Wall Street’s average bonus fell 17 percent in 2018 to $153,700, the first decline in three years, according to estimates by New York State Comptroller Thomas DiNapoli… While DiNapoli didn’t break out bonuses by business lines, equities traders probably fared best, based on forecasts in November by pay consultant Johnson Associates Inc. Fixed-income traders and merger…

Managers Answer Tough Quarter With Job Cuts

With volatility hurting returns, some traditional firms acting to address concerns over spending. Most traditional managers saw their assets under management decline during the fourth quarter, a Pensions & Investments analysis of 24 publicly held money managers found… Asset managers want to be “leaner and have faster decision-making, which means you can’t have too many…

Money Managers Face Reduced Margins in 2019

“For the last 20 years, it’s been a great business — probably too great,” said Alan Johnson, managing director, compensation consultant at Johnson Associates Inc., New York. “The shifts to lower fees mean asset managers have had to find other ways to maintain margin. … Earnings are likely to be down, with layoffs in the…

Money Managers See Higher Bonuses This Year but Are Bracing for Job Cuts in 2019

Compensation will be strongest at firms that have the scale to maintain strong profits or the technology platforms to keep costs low, including managers that focus on passive products and exchange-traded funds. Despite industry pressures, overall headcount increased in 2018 for both public and private managers, specifically in technology, product development and international markets. But…