Asset Management Salary Trends 2023
The asset management industry plays a critical role in the financial sector, providing individuals and institutions with the means to grow and safeguard their investments. Within this dynamic industry, a wide array of professionals, ranging from senior executives to functional experts, all command different compensation packages based on their unique roles and responsibilities.
This article presents a comprehensive analysis based on the findings from our recently released 2023 annual salary guide, focusing on the asset management sector. Our guide encompasses compensation data for various roles within the industry, providing up-to-date information on base salaries, total compensation, and quartile distributions. The data is sourced from a combination of public records, external data providers, and our own records collected during the period from January 1, 2023, to June 30, 2023. To obtain a copy of our 2023 salary guide, please click here.
Now, let us delve into the key trends that have shaped compensation packages in the asset management industry over the past year:
One of the most prominent challenges faced by the asset management industry is the shortage of qualified candidates. This scarcity of skilled professionals has resulted in increased competition among firms to attract and retain top talent. Consequently, compensation packages have become an essential tool in the talent acquisition and retention strategies of asset management firms.
Our salary guide reflects the current market conditions and provides insights into the compensation increases witnessed across different roles. For example, CEOs received large total compensation packages compared to their base salaries.
Diversity, Equality, and Inclusion
The asset management industry, like many others, has recognised the importance of diversity, equality, and inclusion in driving innovation and achieving better business outcomes. As a result, companies have implemented various initiatives and programs to promote diversity and ensure equal opportunities for all employees. These efforts have translated into increased salaries for under-represented groups, bridging the historical pay gaps that existed.
Many companies have significantly enhanced their offerings to attract diverse talent into their organisations to ensure they have a wider range of perspectives, experiences, and backgrounds to enhance the decision-making process. Our salary guide saw C-suite professionals earn total compensation packages of on average 102% of their base salary, up from 77% in 2021.
Cost of Living Crisis
The asset management industry, much like the broader economy, has been impacted by the cost-of-living crisis. Escalating inflation, coupled with the rising costs of essential goods and services, such as housing, healthcare, and food, have strained individuals’ disposable income.
The salary guide showcases the effect of this crisis on compensation packages within the industry. It reveals that lower earners have witnessed larger percentage pay increases compared to those in senior leadership roles, indicating a trend of addressing income disparities through compensation adjustments. Since our last report, base salaries grew on average 6.5% for lower earners compared to 3% growth for senior leaders.
Increased demand for Specialised Knowledge and Expertise
Another factor influencing salaries in asset management is the emphasis on specialised knowledge and expertise. As financial markets have become more sophisticated and complex, there has been a growing demand for professionals who possess specialised knowledge and skills that can navigate these difficulties effectively.
With the rise of complex financial products, such as alternative investments and structured products, there is a growing demand for professionals in areas like ESG investing, risk management, and governance. Individuals who possess these skills are often able to command higher salaries and total compensation packages due to their ability to add value to the investment process.
In conclusion, the 2023 salary guide for the asset management industry offers valuable insights into compensation trends, reflecting the challenges and opportunities prevalent in today’s market.
As a company operating within asset management, it is crucial to stay competitive and navigate the complexities of the current job market. Our salary guide equips you with the latest data on average salaries, total compensation, and quartile distributions across various roles in the industry. By leveraging our expert analysis, you can ensure that your compensation packages remain fair, competitive, and aligned with the industry standards. Whether you are looking to attract new talent or retain your existing workforce, our salary guide is an indispensable resource for success.
To download our Asset Management Salary Guide click here
About Hoffmann Reed
Hoffmann Reed has over 23 years of experience in the asset management industry supporting organisations and their leaders to face the dynamic and challenging world.
With a team of over 140 consultants in 14 offices across 8 countries, we partner with the world’s top leaders to help them achieve both personal and professional success. Our Executive Search, Interim Search, Leadership Advisory and HR Consulting Services, are designed to ensure that we collaborate to create high impact leadership solution that drive performance for your organisation.