Hedge Fund Pay Up 15% As Bonuses Soar

Mar 15 2013 | 12:43am ET

Pay at hedge funds surged last year, fueled by a big increase in bonuses—themselves fueled by strong returns at the industry's best-performing firms.

Overall cash compensation rose 15% to reach an average of $314,000, according to this year's Hedge Fund Compensation Report. Most of the increase was due to a 31% jump in bonuses; the average hedge fund salary rose only 4%.

The increases were seen across the industry, with little difference between the largest firms and their smaller competitors.

"This year, we discovered a significant correlation between fund profitability and bonus size," report published David Kochanek said. "Employees of the best-performing hedge funds took home average bonuses of just over $200,000."

"Given similar performance, we expect 2013 bonuses to rise even further as many funds will reach their high water mark."


In Depth

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

Lifting of Foreign Ownership Limits Signals Sea Change in Vietnam's Capital Markets

Jul 28 2015 | 3:01pm ET

The lifting of restrictions on foreign ownership limits in Vietnam later this year...

 

Editor's Note