This report explores how asset managers are combating senior turnover through strategic use of incentivisation and deferral schemes that serve as mutually beneficial to both employees and employers.
Asset managers continue to struggle with several headwinds such as fund performance, fee margins and regulation. For the most successful business units, turnover of their best performing senior staff is another significant issue and firms with a short-term outlook on employee incentivisation schemes increasingly experience more unwanted departures.
As a result, the industry is focusing on improving retention levels through the use of deferral schemes. These schemes vary in design, implementation and execution and can be tied to various quantifiable and non-quantifiable metrics. With the current regulatory environment shining a spotlight on the industry, these schemes must adhere to remuneration policy and conduct while also ensuring that employees feel that they have significant “skin in the game” and are not just being locked in for the sole benefit of the employer.
In this compensation report we will explore the ways in which asset managers are tackling the issue of staff retention, looking at the following key points:
– How do different types of firm structure compensation packages?
– Does the size of firm have an impact on fixed and variable compensation levels?
– What types of deferral schemes exist?
– Is there a different approach to compensation between investments and distribution?