DESPITE headlines to the contrary, not everyone in funds management is raking in the big dollars, with senior executives finding the drop in the market and the consolidation of the industry putting a freeze on any significant increases.
In fact, many of the senior executive roles filled in the last 12 months have been replacements for existing positions, withFRG’s Peter Dawson stating the absorption of Sagitta intoBT, the restructuring ofAMPand a number of other key industry players have created a surplus of talent in the market. As a result fund managers are spoilt for choice and are in a better position to negotiate.
Dawson says the pressure on employment is such that the current attitude among many staff is to anchor themselves to their current employer in the expectation that prospects in the market will improve in 2004.
However, there are exceptions, with specialist roles in corporate super going against this trend and while the superannuation industry is facing its own consolidation trend, the downsizing has not been as severe.
Dawson says super funds have over the last two years undergone a transformation in perception by those in funds management from being seen as an employer of last resort to a valid career path.
This is particularly the case with those super funds that have committed significant resources to building in-house investment management capabilities and adding to their marketing/communication areas in anticipation of offering public offer funds after the introduction of choice legislation.
Additionally, the super funds are seen as a relatively safe haven. While the remuneration doesn’t meet funds management levels there is security of tenure, which in the current market has become a major issue.
However, given the total remuneration figures, it may be some time before they find a planner who will believe them when they cry poor.
