News Column

Bonuses down at hedge funds

August 22, 2014

Shane Hickey



Hedge fund executives in London saw bonuses plummet last year, with their pay packets less than half what they were 12 months ago.

The average bonus paid to a partner or a managing director of a London-based hedge fund stood at pounds 1,236,000 in 2012/13, but this has fallen to pounds 459,000 in 2013/14. Coupled with a decline in base salaries, total compensation packages are down almost pounds 1m to pounds 660,000.

The details from Emolument.com, a company that analyses salary rates, show there has been huge volatility in what hedge fund professionals are paid, although the most acute changes have been among the high earners.

In 2012/13 the average senior hedge fund professional earned pounds 361,000 in salary and pounds 1,236,000 in bonus, with a total package of pounds 1,597,000. This has dropped to an average salary of pounds 201,000 and a bonus of pounds 459,000 this year - an average compensation of pounds 660,000. However, compensation packages are still more than in 2012, when the average was pounds 485,000.

The figures were collated by using data that was contributed anonymously.

Despite the sharp year-on-year decline in their overall packages, partners and managing directors still earn almost three times what mid-ranking employees take home. Directors and vice-presidents in hedge funds now earn an average of pounds 226,000 compared with pounds 307,000 two years ago. It is however an increase on last year, when the average person surveyed in that bracket earned pounds 196,000.



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Source: Guardian (UK)


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