The work-in-asset-management-instead-of-banking meme is a tired and has been done before. New Financial, a London-based think tank released a whole report on asset management pay rising relative to banking in February. Goldman Sachs is said to be focusing on asset management as a means of offsetting falling revenues in fixed income. Still not convinced? Johnson Associates, the Wall Street pay consultancy, has just produced the following charts confirming the new reality: investment banking is out, asset management is in.
1. Asset management pay is rising. Investment banking pay is not
2. Asset management deferrals are high, but they're less than investment banks'
3. Yes, asset managers pay a lower % of revenues to their staff - but it's always been this way and the industry is less volatile than investment banking