Investment Banking vs Asset Management Salary

Allianz Asset Management was at the top of the list as the most “equitable” group in 2013, according to the Financial Times. This was among many of the other large fund houses whose employees have seen a spike in salary due to huge growth in profit. Pimco had an average salary of £436,000, with Man Group following behind at £232,000, according to the newspaper, who surveyed the cost of staff at ten of the largest fund houses.

In sharp contrast to the investment bankers, who have earned £212,000 as shown by Pricewaterhouse Coopers on average, the paying salaries of asset management groups has skyrocketed overall. This often leaves bankers in the dust by comparison. The pay scale includes incentives and benefits, as well as other costs. The salary at Aberdeen was even lower at a mere £174,000. In addition, the pay scale for many asset companies went up between four and ten percent last year, and the higher salaries included mainly sales employees.

Cerulli Associates believes the results could cause discomfort at some fund houses that are trying to reduce expenses, but others think the high salaries will be untouched. Because of a high profit margin last year, with profits going up approximately 18 percent, companies were frequently able to increase pay rates and compete against the high salaries of bankers.

Far-reaching negative opinions of the bonuses prompted fund groups to heighten salaries despite a squelching of proposals to cap the bonuses. Some companies who have lower pay rates are F&C and Julius Baer, who paid an average of £132,000 and £107,000 in 2013, respectively. F&C increased in profits last year, but Baer went down. If salaries are kept steady, there is a higher possibility that talent will move over to the competition, where the grass is greener. To prevent this, other approaches are being tried, such as non-monetary compensation like flex schedules, as well as some bonus guarantees for top talent.

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