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

The Importance of Stability in the Evolving Hedge Fund Administration Market

Oct 5 2015 | 8:17pm ET

Hedge fund administration has evolved from simple record keeping to an integral,...


Citadel's Griffin Reaches Settlement in Contentious Divorce

Oct 8 2015 | 10:14pm ET

Billionaire hedge fund manager Ken Griffin and his wife have settled a long-running...

Guest Contributor

Hedge Fund Marketing To Independent RIA Firms

Sep 30 2015 | 1:56pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth Inc. explains...


Editor's Note