Thelander IF Digest: January 2023

How are Investment Firms Retaining Talent in 2023?

In this month’s Thelander Digest, we examine different trends on how investment firms are retaining their talent for 2023. All of this data comes from our 2022 Year-End Salary Increase & Bonus Survey. Let’s dig in by exploring the numbers!
As seen in our charts below, two trends become clear:

• The median salary increase percentage is still high compared to staff-level employees at privately held companies. However, increase percentages are lower for 2021 and 2022 (which were banner years).
• Investment Firms are being more reserved with their cash, as they fear going into a potential recession / uncertain economic times.

By examining the final chart, we can see that merit and performance were the most common factors in determining a salary increase for investment professionals. Inflation played more of a factor for salary increases for entry-level analysts.

After analyzing our data, we see some notable trends:

• Investment firms are still willing to pay top-dollar in order to retain talent, regardless of uncertain economic times.
• Although the YoY median salary increase seems lower in 2022 compared to 2021, the percentages are still higher overall, compared to staff-level employees at privately held companies.
• Merit and performance are the dominant factors in salary increases for investment professionals. This indicates a strong and competitive talent market going into 2023. 

Want to learn more? The full report is included in a subscription to the Thelander Investment Firm dataset.

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