Asset management compensation report 2018

BlackRock CEO Larry
Fink.
REUTERS/Jason
Reed

• Asset management compensation will increase 5% this
  year, a new study says.
• But there are still major challenges within the asset
  management industry and things could get worse in
  2019.
  

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Asset managers are likely to receive a small bump in their
overall compensation this year – around 5%, according to a new
report. But that uptick masks some of the larger challenges
within the industry, as market volatility, the reallocation of
bonus pool dollars to technology investments and declining
margins eat into industry profits. 

Overall compensation for
equities-focused traditional asset managers is expected to
average around $710,000 this year, compared to $490,000 for fixed
income-focused managers, according to a survey of more than 1,000
professionals by consulting firms Greenwich Associates and
Johnson Associates.

But those figures could
fall,

as markets have moved lower in recent weeks. 

“Volatility and slowed business momentum has added uncertainty
and introduced an element of downside risk that could push final
pay numbers lower if markets remain unsettled,” the report
cautioned.

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