|Published : 16 Apr 2017, 13:18:20|
Pay cut fear haunts asset management
There are now fears that asset management staff will face another round of pay cuts into 2017. Greenwich Associates and Johnson Associates, the consultancies, said in a recent report: “The business environment for 2017 doesn’t look to be improving — and could get worse,” says a global media report.
According to the study, 2016 marked the second year in a row that traditional asset managers reduced pay for staff, and the third consecutive year of cuts for hedge fund employees. “Pay levels in the asset management industry are on the decline,” the study found.
The recent decline in pay is in stark contrast to just a few years ago, when asset management staff enjoyed significant pay increases in the period immediately after the financial crisis.
Between 2011 and 2015, the total remuneration of asset management employees in Europe jumped 10 per cent as the industry grew rapidly.
Continued pressure on pay could cause additional problems for asset management companies as they attempt to weather a difficult period for their businesses.