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The investment management salary is well reported and available to the public. The amount of compensation paid to investment management professionals is published by the CFA Institute on a periodic basis, with the last study conducted in 2005. The study indicated a 3 percent increase in salaries and 17 percent increase in bonuses (although average bonuses numbers are not provided, the range for bonus compensation is between $500,000 and $1,000,000). Hedge funds and other alternative investment managers saw a greater increase in income over other investment managers by more than 47 percent according to the study.
Median Income Reported
The median income reported for investment managers rose from $145,000 in 2003 to $170,000 in 2005. A manager’s experience, education and type of investment management role showed the difference in compensation models. Managers with 10 plus years of experience saw a median income of $240,000. Top managers earned in excess of $750,000.
Experience and Role Influence on Compensation
Investment management professionals with 10 plus years and a CFA averaged 24 percent more than those without a CFA designation. CFAs in general earned 54 percent more in compensation than non-CFAs, which was $116,000 versus $180,000. Hedge fund managers earned 47 percent than mutual fund managers. When consider the addition of bonuses as income, the average or median compensation for investment managers is between $700,000 and $1,500,000, dependent upon the type of investment management role.
