Fundster CEO pay (especially at privately held shops) is on the rise, though it's not keeping pace with the stock market.
In a Financial Times article
by Madison Marriage, Jeanne Branthover
, managing partner at executive search firm Boyden, says that last year average fund firm CEO pay (across both publicly traded and privately held shops) jumped up 15 percent last year to $18 million to $20 million.
"Asset management companies do not want to lose these [CEOs] so they are retaining them through compensation," Branthover told the FT
. "It is a really good time to be a CEO in asset management -- that is the bottom line."
That 15-percent jump in fundster CEO pay lagged the S&P 500's 26.39-percent rise in 2013. Yet the pay increase is in line with the pre-tax profit increase of 15 percent, Tim Wright
, PwC rewards practice partner, described to the FT
also highlighted top CEO pay for publicly traded fund firms, and in doing so the paper hints at a compensation dichotomy: publicly traded fundster CEOs seem to be earning less than their counterparts at privately held shops. Of the five top public fund shop CEOs mentioned, only one, BlackRock's
] Larry Fink
, beat out the average fund firm CEO pay range of $18 million to $20 million mentioned by Branthover. Fink's pay climbed 12 percent last year.
The other top paid public fund firm CEOs listed in the article were Invesco's
] Marty Flanagan
($15 million, up 20 percent), Schroders'
] Michael Dobson
($14 million, up 71 percent), Franklin Resources'
] Greg Johnson
($12.1 million, down 1.5 percent) and Aberdeen's
] Martin Gilbert
($8.6 million, up 7 percent).
Neil Anderson, Managing Editor
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