Hedge Fund Managers Expect Higher Salaries, Smaller Bonuses in 2012

Hedge fund managers expect to earn higher base salaries in 2012, but are bracing themselves for smaller bonuses, according to a report by HedegFundCompensation.com.

The report said the average cash compensation for hedge fund managers in 2011 was $311,000, a notch above what they took home a year earlier.

The report added that traders and senior associates saw the biggest gains in take home pay, while chief operating officers, partners and principals either saw no gain or absorbed a decrease in total pay. Those differences were mainly from bonuses, the report said.

Compensation consulting firm Johnson Associates previously said that all of Wall Street should expect sharply lower year-end payouts for 2011, with fixed income traders taking the hardest hits with declines of as much as 45 percent.

Equities traders and senior management were likely to see their bonuses cut by as much as 30 percent, while investment bankers could expect a 20 percent cut.

As the Senior Editor of Advanced Trading, Justin Grant plays a key role in steering the magazine's coverage of the latest issues affecting the buy-side trading community. Since joining Advanced Trading in 2010, Grant's news analysis has touched on everything from the latest ... View Full Bio