Premium
EVIDENCE ON THE COMPENSATION OF PORTFOLIO MANAGERS
Author(s) -
Farnsworth Heber,
Taylor Jonathan
Publication year - 2006
Publication title -
journal of financial research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.319
H-Index - 49
eISSN - 1475-6803
pISSN - 0270-2592
DOI - 10.1111/j.1475-6803.2006.00180.x
Subject(s) - compensation (psychology) , portfolio , profitability index , business , control (management) , investment (military) , industrial organization , finance , economics , psychology , management , law , politics , political science , psychoanalysis
We surveyed 396 portfolio managers about the structure of their compensation. Overall, more compensation packages are subjective/discretionary than objective/formula based. Firm success factors such as firm profitability have more effect on bonuses than do client success factors such as investment performance. Differences in the structure of compensation across firms, clients, job types, and manager characteristics reflect likely differences in the underlying contracting environments, especially differences in the difficulty of monitoring performance and exerting control.