Fiderion Identifies Compensation Trends for 2007
NEW YORK, NY - (September 14, 2006) – Executive compensation is likely to remain flat in 2007, although continued strong demand is expected in certain areas, according to Fiderion, a retained executive search and strategic management consultant for financial services, technology and marketing companies.
"Portfolio managers and highly quantitative investment professionals are likely to be hired at higher compensation levels than ever before with decreased demand for fundamentalists and stock pickers,” said Fiderion President and CEO James B. Norton and Managing Director Steven D. Niss. “Risk management professionals are in particularly strong demand with compensation in the $500,000-$2 million range. Their function is becoming increasingly important and complex within investment organizations.”
Hedge funds will continue to search for talent, as in the past, despite less than stellar returns in 2006. The “brain drain” from traditional asset management appears to be slowing down as some return to the larger shops after unsuccessful career jumps to hedge funds that either close or have difficulty raising assets.
“Entrepreneur flow” is also increasing as people realize they can earn more money and do their jobs better on their own. To manage this trend, several of the major investment organizations are expected to seed more start-up firms than ever before in an effort to retain top talent.
Commodities and energy professionals will be in strong demand, unless the markets change, in 2007 as investors seek new sources of alpha, and energy driven investments will continue to broaden in scope and importance.
Career uncertainty caused by mergers and acquisitions and resulting industry consolidation is leading more investment professionals than ever to realize that “there’s more to life than money” and a job that provides stability and flexibility may be preferable.
Fiderion was founded as a retained executive search boutique in 2002 by James B. Norton, III and has expanded to include four practice areas: Financial Services, Technology & Operations, Marketing Officer, and Portfolio Services.
For further information, please visit www.fiderion.com. The firm’s headquarters address is 3455 Peachtree Street, N.E., Suite 780, Atlanta, GA 30326, telephone 404-995-4700. The New York office is located at 780 Third Avenue, 25th floor, New York, NY 10017, telephone 646-502-7170; Connecticut offices are at 5 Raymond Place, Westport, CT 06880, telephone 203.227.3533.