The Highest Paid Money Managers in the World

Economy Jamie Simon
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The heads of the largest funds in the world of asset management in 2015 received bonuses of more than 15 times the basic salary, writes the British daily Financial Times.

Larry Fink, CEO of BlackRock – fund with assets under management of over $4.890 billion received bonuses of 28 times the basic salary, while James Kennedy, CEO of T Rowe Price, fund with assets under management of $776 billion, received revenue from bonuses over 24 times the base salary, according to the British journalists.

Therefore, Fink, head of BlackRock – a company with around 12,000 employees – received in 2015 a total income of 30.43 million Euros; the fund recorded a gain of approximately 3 billion euros on a turnover of nearly 11 billion euros.

Meanwhile, the head of T Rowe Price has obtained an income of 10.5 million euros in 2015, when the fund made a profit of over one billion euros. Bonuses within investment banks are about 10 times the basic salary, while in Europe the banks have decided to sell level bonuses up to twice the base salary.

Opinions are divided in the industry. While one side argues that through such an approach, namely providing substantial bonuses, managers of the largest funds are motivated to record better results, while difficulties that arise from such jobs justifying generous incomes, the other argue that these measures, the fund rules are pushed to look for a short term, preferring often to underestimate the long-term effects.