Wednesday, 30 July 2014
Last updated 14 hours ago
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."
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…