The Average Investment Management Salary Including Bonuses

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.

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