Show me the shares (say asset managers)

Forget cash bonuses, fund managers are increasingly keen on receiving stakes in the companies they work for.

"More and more people are looking for equity to move," says Paul Groarke, a fund management consultant at headhunter Hannover Search. "Three to four years ago, we would not be asked about it by candidates or even notionally given permission to discuss equity. Now, for senior hires we certainly discuss that," he adds.

It's a trend identified in a recent report by compensation consultancy Watson Wyatt. According to the report, fund managers are increasingly being forced to dish out equity stakes in order to keep their employees happy and motivated.

Equity is definitely on the up in asset management circles, agrees Giles Crewdson, partner in the global asset management business at KornFerry International. "Fund managers will get a cash bonus of, say, 50k or 100k and then there will be a sliding scale as to how much of that bonus will be paid in stock.

"This may be in excess of 50% stock and there may be a three-year vesting period, which means there is a tie-in too," he explains.

Changes to the way stock options are treated for tax purposes have also increased the popularity of restricted stock.

At the same time, asset management salaries are rising. Recruitment firm Joslin Rowe says the average (junior) investment manager now jumps for a salary boost of 5k. Three years ago, it says, a 3k hike was the norm.