After spending time with clients this fall, we came to the conclusion that many of the predictions made earlier in the year regarding rising compensation expectations were incorrect. We are convinced by our anecdotal survey that overall compensation expenses might rise slightly, but senior executives will not participate meaningfully in those increases. For the first time in the modern history of the asset and wealth management business, there is a disconnect between rising AUM and profitability. There is no time like the present to begin the process of normalizing compensation expectations of professionals at all levels in the industry.
