GLOBAL - UK-based fund managers still earn 22% more than their counterparts in the US, Canada, Switzerland, Hong Kong, Singapore and Japan.
According to a new study, fund managers in these countries earn an average £80,946 per annum.
But more than half of fund managers and analysts in the UK still feel they are underpaid despite average salaries of more than £103,000.
Research by the Association for Investment Management and Research and executive recruitment consultant Russell Reynolds Associates shows that annual pay for investment professionals – fund managers, analysts and senior staff at asset managers and other financial service organisations – is down 16.5% on 2001 levels.
AIMR’s research found that base salaries have remained “relatively” consistent but bonuses have fallen 35% – from an average of £43,419 in 2001 to £28,188 in 2003.
AIMR senior vice-president Raymond DeAngelo said: “Our members are seeing the realities of a market downturn reflect significantly in their levels of remuneration.
“The primary factor that drives their remuneration is the overall performance of their firms.
“While AIMR members continue to be well-remunerated, they – like their firms and their clients – are feeling the ripple effects of a bear market reflected in their overall remuneration.”
Bedlam Asset Management head of client services Charlie Scott Plummer attacked the pay structure for fund managers in the UK.
He said: “If 53% of fund managers feel underpaid, then 98% of all UK investors feel that they’ve lost more money than they should have.
“At some point, there has to be realignment between fund managers’ performance and pay.
Russell Reynolds investment management practice managing director Debra Brown explained that globally, the profitability of employers has had a “substantial impact” on the pay of fund managers.
“The economy has brought about a fundamental change in the way organisations approach incentive remuneration.
“These findings indicate that investment management professionals’ remuneration is more closely tied to the overall success and profitability of the parent organisation than ever before.
“While individual performance still matters, limited resources and a shrinking bonus pool are universally felt.”
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