NU Online News Service, Nov. 30, 2004, 4:22 p.m. EST
The job market may be improving for investment management executives.[@@]
Recruiting activity is up about 12%, and compensation is up about 15%, according to Russell Reynolds Associates Inc., New York, an executive search firm.
Although investment companies are getting about half of their new chief executives and presidents from inside their organizations, 85% of the new chief investment officers are coming from outside, Russell Reynolds says.
Other Russell Reynolds observations:
- Because of the recent waves of scandals, investment companies are putting less emphasis on short-term bonuses and more on long-term incentive arrangements.
- Some contracts include terms requiring that new executives leave immediately if stories about questionable practices at the executives' previous employers surface.
- At benefit plans, endowments and foundations, pension consultants are out and endowment investment executives and governance specialists are hot.
- At retail and private wealth management operations, mutual funds and trust banking services are out. Market segmentation and post-retirement planning and advice are hot.
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