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."


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Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

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