The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:WSJ Spotlights Fund Bigwigs' Pay Not Rated 0.0 Email Routing List Email & Route  Print Print
Thursday, February 19, 2009

WSJ Spotlights Fund Bigwigs' Pay

by: Armie Margaret Lee

$1- a-year salaries? Not in the mutual fund industry. In Thursday's Wall Street Journal, Diya Gullapalli notes that while fund executives saw a decrease in their pay, the austerity that has swept through parts of the financial industry hasn't hit fundsters as hard.

Fund executives' compensation is attached to the company's profitability, not just funds' performance, so while portfolios slump and some investors yank their money, most executives continue to "draw profits creamed from fund assets," Gullapalli writes. Also, most executives in the industry haven't been drawing on TARP money.

Duncan Richardson, chief stock investment officer of Eaton Vance, took home $3.7 million in 2008, most of which came from a cash bonus. That was down 20 percent from a year earlier. Eaton Vance's 30 or so stock funds were in the red for the year through October. An Eaton Vance spokeswoman told Gullapalli that despite the decline, most of the funds did well compared with peers and market benchmarks, and she added that Eaton Vance saw strong sales in 2008.

Legg Mason's Bill Miller made as much as $30 million yearly through March 2007, according to Gullapalli. For the fiscal year ended March 2008, he received nearly $5 million due to a revenue sharing agreement that largely ties his pay to his unit's overall performance, she reports, citing unnamed sources. A spokeswoman for Legg said the firm's honchos will take big pay cuts this year and Miller's will be the largest.

For his part, Franklin Resources CEO Gregory Johnson earned $5.3 million for fiscal 2008 through September while several of the company's 115 mutual funds were losing money, Gullapalli notes. Johnson received a $2.1 incentive bonus, in part due to the company beating a 33 percent operating margin target, and $2.4 million due the firm's operating income hitting a record high. Johnson's pay for fiscal 2008 was 35 percent lower than what he took home in 2007, a Franklin spokeswoman said.

Over at State Street, which was one of the recipients of TARP funds, 2008 pay numbers have not been released yet. CEO Ronald Logue's total compensation in 2007 was $20.5 million and he will receive $1 million in salary for fiscal 2008 ending December. 

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use