Most Canadian investment professionals, 71%, say that their total compensation increased from 2005 to 2006, according to a survey.
The 2007 CFA Institute Member Compensation Survey finds that 27% of respondents’ compensation increased by 20% or more and 25% said the increase was between 10% and 20%.
Twenty-one percent of respondents saw no change in compensation between the two years, and 6% said their total compensation decreased.
Most respondents, 90%, were eligible for a cash bonus in 2006. What is the largest determinant of cash bonus and 47% of respondents said their bonus is primarily tied to their individual performance—investment performance, financial contribution, or other individual factors.
Twenty-six percent said overall firm performance is most important, and another 26% said bonus is driven by business unit/division performance.
While most respondents were eligible for a cash bonus in 2006, 31% were awarded long-term incentives and 35% of those who where awarded long-term incentives received restricted shares, 24% received stock options, and 41% received other incentives such as mandatory deferred cash, phantom shares, performance units, and investment partnership payments.
To read the results from the CFA Institute survey, click here.
To comment on this story, email craig.sebastiano@rci.rogers.com.