Asset management firms are close to paying their employees just as much as investment banks, new research shows, reflecting the shift in balance in the capital markets since the financial crisis.
Average compensation cost per employee – a constant proxy for pay – at investment banks has fallen by 25 per cent between 2006 and 2014 to $288,000 (£187,000).
At some firms the fall in pay has been even steeper. At Goldman Sachs, for example, pay has fallen by more than 40 per cent, think tank New Financial has found.
In contrast, the average pay at asset management firms has increased by a fifth since 2006 to $263,000, almost catching up with pay at investment banks.
While at asset managers pay has remained constant relative to growing revenues, the opposite is true at investment banks.