Global markets sales, trading, and research professionals earned average base salaries of $408,500 in 2024, according to the US Global Markets Compensation Survey, from Heidrick & Struggles (a provider of executive search, corporate culture, and leadership consulting services).
The average hedge fund portfolio manager earned average base pay of $277,268, plus $686,757 in variable compensation, including bonuses, commission, and options in 2017, according to Institutional Investor’s All-America Buy Side Compensation report.
GlassDoor.com reports that hedge fund managers earned total compensation that ranged from $171,000 to $314,000 in 2024.
According to Institutional Investor, the top 25 hedge fund managers earned an average of $1.04 billion in 2023. Some hedge fund managers earn nearly $3 billion a year.
Hedge fund managers receive excellent benefits packages, including vacation days, sick leave, health and life insurance, and a 401(k) or other retirement savings plan. They also receive a management fee, which is traditionally 2 percent of either the size of the fund’s assets or the amount of capital that has been either invested in the fund), and performance-based remuneration (traditionally 20 percent of fund profits). In recent years, investor dissatisfaction with fund performance has prompted many investors to reassess their holdings and request reduced and/or customized fee schedules. In the second quarter of 2022, average management fees were 1.36 percent, according to Hedge Funds Research. Incentive fees were 16.05 percent in the fourth quarter of 2021.