Fund manager salaries are set to be squeezed over the next four years as new regulations around fee transparency place pay packages under further scrutiny, according to PwC.
In a new report, entitled 'Rethinking reward as asset management moves centre stage', the company said compensation for asset managers as a percentage of revenues could fall to 35% by 2020, from a current high of 45%. Despite expecting growth in revenues and profits to cause an increase in overall compensation pools over this period, PwC said upcoming transparency directives, such as MiFID II, UCITS V, and AIFMD, will drive a stronger focus on the link between returns and manager salaries. "This will increase alignment with investors and reduce reliance on broader corporate performanc...
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