These Firms Could Double Base Salaries

Pot Of Gold

Will you be among the lucky ones ?

Bloomberg reports that mutual fund companies risk developing unstable cost structures as they may have to double fixed salaries to sidestep proposed European bonus caps, industry analysts say.

About three-quarters of mutual fund managers’ total compensation is from bonuses and long-term incentives, meaning salary increases of 50% to 100% are thought likely to be required to negate the cap.

A European Parliament committee last month proposed to limit fund managers’ bonuses to no more than base salaries.

'We will see many firms put up fixed pay by 50% percent and maybe they will put them up by 100% because they’re worried about losing people', said Carl Sjostrom, director of executive reward for Europe at Hay Group, a Philadelphia-based management consulting firm. 'The worry is that, systemically, this will make the firms less stable because they’re less able to adjust in bad times'.

European asset-management firms are concerned the proposal, which may affect two-thirds of senior fund managers, may cause a bidding war for their best-performing employees, increasing fixed costs and making the industry more vulnerable to market downturns.

Hit the link below to access the complete Bloomberg article:

European Fund Managers Seen Doubling Salaries on Bonus Caps

Citigroup’s Dennis Leaves as Emerging-Markets Strategist

Blackstone Pulls Out of Dell Bid on Rapidly Falling PC Sales



JefferiesAnd the Best Place to Work in the global financial markets 2016 is...

Register for Financial Markets News Alerts