Contact Information: Contact Information: Chris Cavanagh 212-224-3369 chriscavanagh@iimagazine.com www.iimagazine.com
Global Firms Pay Asian-Equity Analysts Nearly Twice as Much as Local Firms, New Institutional Investor Survey Finds
| Source: Instututional Investor
NEW YORK, NY--(Marketwire - June 5, 2008) - Sell-side equity analysts at regional
investment banks in Asia are often thought to have an edge when it comes to
local knowledge, but those at global firms are the undisputed champions of
compensation: Analysts covering Asian equities for U.S.- or Europe-based
banks, earn total compensation that is on average 85 percent higher than
that earned by analysts at regional firms, according to Institutional
Investor's inaugural Asian Equity Sellside Compensation Report.
On the buy side, investment professionals at money management firms in Asia
who perform double duty as analysts and portfolio managers earn about one
third less in total compensation than those who perform only the duties of
portfolio manager, according to Institutional Investor's inaugural Asian
Equity Buyside Compensation Report.
Both reports are available today on www.iimagazine.com.
Sell-side
Asian-equity analysts at global firms earned, on average, $364,081 in
salary and bonuses last year (paid in local currencies and converted to
dollars for the purpose of comparison), while analysts at regional firms
earned total 2007 compensation of $196,726, the survey finds. The ratio of
salary to bonus is roughly equal at global and regional firms, with bonuses
accounting for 63.9 percent of total analyst compensation at global banks
and 64.1 percent at regionals.
Analysts across the board expect the pay gap to widen this year.
Researchers at global banks project that their total compensation for 2008
will increase 21.8 percent, to $443,363, while analysts at regional firms
anticipate a pay raise of just 13.7 percent, to $223,743. If these
predictions prove correct, bulge-bracket analysts will earn 98.2 percent
more than analysts at regional banks this year.
Buy-side
Last year, portfolio managers at money management firms in Asia earned mean
total compensation of $589,819. That's $199,084 more than those working as
both analysts and portfolio managers, who earned average total compensation
of $390,735.
Compensation trends in Asia differ significantly from those in the U.S. and
Europe, where performing double duty results in higher total compensation.
In the U.S., analysts/portfolio managers earn more than twice as much as
analysts. In 2006, the most recent year for which U.S. figures are
available, the mean total compensation for analysts/portfolio managers was
$345,064, compared to $165,150 for analysts.