UK asset management employees survive global pay plunge

William Turvill
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Globally, asset management employee pay has fell around 20 per cent between 2014 and 2016 (Source: Getty)

Global asset management pay fell for the second year running in 2016 and is down 20 per cent since 2014, new figures show. But those working in the UK asset management industry enjoyed a remuneration boost.

Median salaries in the industry worldwide were $84,000 (£67,000) last year, with a median bonus of $15,000 bringing total average pay to $99,000, according to salary benchmarking site Emolument.

The 2016 pay average is down two per cent from $101,000 in 2015, which itself was down 18 per cent.

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However, Emolument’s data shows that UK asset management firm employees fared better, with employees at all levels enjoying pay rises last year.

Analysts’ median pay was up one per cent to £45,500, associates’ up seven per cent to £65,000, vice presidents’ two per cent to £105,000 and directors’ three per cent to £185,000.

UK data Median salary Median bonus Year-on-year change
Analyst £42,000 £3,500 +1%
Associate £55,000 £10,000 +7%
VP £80,000 £25,000 +2%
Director £120,000 £65,000 +3%

It was a slightly different story when the focus switches specifically to fund managers, as opposed to all employees. UK analysts’ pay was up three per cent to £51,500, vice presidents’ up 21 per cent to £135,000 and directors’ up 20 per cent to £245,000. But fund manager associate pay suffered, down four per cent to £67,000.

“Over the last 12 months, we have seen pay packages flatline in the asset management industry, especially for front office professionals,” said Emolument co-founder Alice Leguay, commenting on the global figures.

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“Large redundancy plans across the sector have given employers the pick of the crop, and most do not feel under pressure to up pay in order to retain staff, except for some outstanding senior staff who bring in valuable business or can hit the ground running.

“Many fund managers no longer expect annual salary raises by default and are contented with being in employment: threats to leave following a disappointing bonus round no longer impresses.”

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