Let's hope that this is another sign that the economy is back. Franklin Templeton has thawed a two year-old pay freeze on merit raises for workers who earn less than $200,000. The move was announced by Greg Johnson, who will take over as co-CEO at the start of 2004.

The pay freeze helped Franklin Templeton survive the bear market without resorting to layoffs. Indeed, the number of employees at the San Mateo, California-based fund firm rose slightly over the three year market downturn. However, it did cut some salaries by five to 10 percent in 2001.

The firm was also helped out by its strong reputation as a manager of value funds. That niche gained assets even as most growth funds showed losses.  

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