Do Hedge Funds still pay?
We have examined 2014/2013 salary and bonus data from 50 hedge fund professionals at Director level working in London.
- The slow decline of base salaries... -19 points between 2012 and 2013 and -12 points between 2013 and 2014
- ...pale in comparison with the collapse of bonuses! 2013 Bonuses are less than 1/3 of what they were in 2012; hedge fund bonuses are not capped as banker's but directly linked to performance
- The last 2 years have taken their toll on the myth of the hedge fund executive in their Aston Martins: 2014 total compensations only amount for 45% of 2012 levels...
Over the last few years since 2008, hedge fund managers have been more willing to show flexibility when it comes to management fees, which is why base salaries have been eroding thus. Directors are at a particularly volatile level when it comes to bonuses as they are deemed expensive by their firm but not so senior that they are absolutely essential to the business, therefore seeing their bonuses slashed dramatically.
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