The money market shines

Fund managers are still the financial services industry’s leaders when it comes to lucrative salary packages.

In particular, investment specialists continue to be well-remunerated, with even lower level analysts receiving a minimum of $130,000 per annum (salary and bonus) according to the Money Management salary survey.

Next in the pecking order are portfolio managers, whose salaries range from $120,000 to $180,000, plus a bonus of up to $120,000.

Chief executive officers are looking at payslips with six figures — a salary in the range of $400,000 to $700,000, as well as any additional performance-related pay, which roughly equates to receiving the same salary again at between $500,000 and $600,000.

There continues to be a large disparity in salary levels between boutique firms and institutions, but long-term incentives continue to entice individuals to the smaller outfits.

Peter Dawson, executive director of the Financial Recruitment Group, says: “Boutique fund managers often offer lower level base remuneration, but provide market bonuses and the ability to gain equity participation, usually after a three-year period.”

Simone Meers, head of Profusion Executive Management, agrees.

“You’ll find that people who go into the boutiques do it because they are there for the long-haul — for the next five to 10 years — and they are expecting at that point to receive a large amount of money.

“There’s no guarantees around that, because obviously it’s linked to the performance of the business, but a lot of boutiques are looking at their long-term plans, so offer long-term remuneration models which balance out the short-term salaries.”

The only small cloud on the horizon relates to bonus payments. With investment returns not expected to reach the all-time highs of 2004, fund managers may have to work just that little bit harder this year to secure that promised pay-out.