An issue related to the supply and demand of investment professionals is compensation trends. This issue is made complex by the variety of roles, skills, and geographical differences within the industry, but overall, respondents to our industry leader survey anticipated that compensation levels would be relatively stable in real terms over the next 5–10 years.
Executive recruiters for the investment industry noted that the cost containment pressures of the industry in certain geographies would be more likely to result in reduction of head count versus reduction of salaries. Meanwhile, the increased competition for top talent suggests that the variation in compensation levels across roles and geographic markets may continue to increase.