The sense pervading the broader financial sector that 2011 would be a difficult year for compensation appears to have spared the hedge fund industry. Half of this year’s respondents believe that their cash compensation would either stay the same or go up between 1 and 15 percent; only one in five believe it will actually decrease — which is about the same as what we reported last year.
Traders and senior associates saw the most substantial gains in 2011, while COO’s, partners, principals saw no gain or a decrease in total pay. Those differences are mostly from bonuses and are supported by fund performance.
Some of the highlights from this year’s report include:
This decrease in fund performance and bonus payout has some professionals worried. Employees surveyed cited market conditions and the pace of redemptions as concerns and the hedge fund job market is supporting those concerns. Forty-four percent of hedge fund employees are happy with their compensation, up from 40 percent in 2010.
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