This year fundsters' bonus growth won't keep pace with investment bankers in underwriting or private equity executives, at least according to a boutique compensation consulting firm.
Year-end asset management industry bonuses will rise five to ten percent, New York City-based Johnson Associates estimates
. Yet looking ahead, Alan Johnson
, managing director of his eponymous firm, worries that "the momentum from 2017 may be difficult to replicate in 2018, especially within select sectors like asset management, where fee and product pressures remain."
That five to ten percent increase puts asset management bonus increases in line with predicted increases for financial services executives in the high net worth, commercial and retail banking, and investment banking advisory areas, as well as with increases for firm management and other staff. Yet Johnson Associates estimates that private equity bonuses will rise 10 to percent and that investment banking underwriting bonuses will rise 15 to 20 percent.
On the flip side, asset management bonus increases are expected to outpace bonus increases for executives at hedge funds and in sales and trading (both in equities and fixed income).
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Neil Anderson, Managing Editor
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