CEOs at Asset Management Firms Earn More

In the past few years, Wall Street banks have had some trouble staying afloat amidst regulations and turbulent financial markets.  However, it seems asset and wealth management firms have been doing just fine.  While CEOs’ bonuses shrunk considerably at the country’s top investment banks, bonuses at some top asset management firms actually rose.  It was recently reported that the total compensation for the chief executives at Federated Investors Inc., Franklin Resources Inc., and T. Rowe Price Group (three of the U.S.' top seven asset management firms) increased by 28% in 2011.  This success can be primarily attributed to the fact that asset management firms are able to avoid a lot of market volatility managing steady mutual funds.  Bonuses also improved for asset and wealth management firms’ general employees.  In 2011, bonuses were expected to increase by 5% for asset management, while they were expected to fall by 20% to 40% for U.S. commercial and investment banks.