Annual Greenwich Associates and Johnson Associates Report Reveals Trends in Compensation of Investment Professionals at Buy-Side Firms

Greenwich Associates, LLC (Greenwich), an international research-based consulting firm in institutional financial services, in cooperation with Johnson Associates, Inc. (Johnson), a boutique financial services compensation consulting firm, have issued their 2013 report on U.S. asset management compensation (Report).  The Report is based on Greenwich’s interviews with “more than 1,000 financial professionals in equity and fixed-income investor groups at investment management firms, mutual funds, hedge funds, banks, insurance companies, government agencies, and pensions and endowments.”  Johnson used the data gathered by Greenwich, in conjunction with its proprietary compensation information and other industry data, to project trends for 2014.  Among other things, the Report broke out compensation between buy-side and sell-side firms.  The Report also broke out compensation among buy-side investment professionals, based on whether they were fixed-income or equity professionals and whether they worked at hedge fund firms or other buy-side firms.  The Report also highlighted trends in the compensation mix among buy-side professionals.  This article summarizes the key findings of the Report.  For coverage of prior years’ surveys, see “Greenwich Associates and Johnson Associates Issue Report on Asset Management Compensation Trends in 2012,” Hedge Fund Law Report, Vol. 5, No. 47 (Dec. 13, 2012); and “Compensation Survey by Greenwich Associates and Johnson Associates Highlights Trends in Compensation and Best Practices for Hedge Fund Managers and Other Investment Professionals,” Hedge Fund Law Report, Vol. 4, No. 46 (Dec. 21, 2011).

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