The number of increases in base pay and bonus fell year-on-year for investment professionals in private equity but the broader job market for the sector remains strong, according to a recent Hedrick & Struggles survey.
45 percent of respondents claimed that their bonuses increased in 2019 which fell lower compared to 59 percent in 2018 and 29 percent in 2017. Base salaries also faced a similar trend with 42 percent of respondents claiming an increase compared to 45 percent in 2018 and 42 percent in 2017.
Employees at the associate and senior associate level received the greatest percentage gain, followed by the vice president level, according to the firm’s sixth edition of its «Asia Pacific Capital Investment Professional Compensation Survey».
Still Optimistic
Despite the slight dip in numbers, respondents remained optimistic with 65 percent expecting base compensation to rise in the next 12 months. Headcount is also expected to increase with firms investing not only in more junior and mid-leveled employees but also developing teams outside of traditional hubs like Hong Kong, Singapore or Tokyo.
On investment opportunities, just 13-16 percent expect a decline with India (as agreed by 53 percent of respondents), Japan (48 percent), South Korea (48 percent), Singapore (42 percent) and Greater China (39 percent) leading the pack as markets with the most attractive outlook.
«What we’re finding is sustained growth and demand across strategies, which is a really good indicator of long-term health,» said Michael Di Cicco, regional managing partner of Heidrick & Struggles’ private equity practice.
