50% of investment professionals expect no salary increase in 2021

But taking a closer look, respondents across all levels except managing partners reported a steady increase in cash compensation from 2018 to 2020. Associates and senior associates are leading the way with the greatest percentage increase, a compound annual growth rate of 15% between 2018-2020, followed by those at the vice president level.

In contrast to last year’s findings, however, investment professionals at global funds reported a higher median cash compensation in 2020 as compared to those at regional funds at almost all levels of seniority.

This year’s findings reflect a trend that the Greater China premium is indeed diminishing, in line with last year’s observations. Compensation in other markets such as Japan and South Korea are now higher – at the VP, principal and managing partner levels. However, this trend is not as consistent across all levels in 2020, as seen in 2019.

“Looking ahead, with a broad set of unprecedented hurdles on the horizon, talent plays a more critical role than ever before as firms must step up to the challenge,” said Todd Monti, Heidrick & Struggles’ global managing partner for its private equity practice.

“Firms not only have to effectively ride out the changing investment outlook, but also manage their employees’ growing expectations and concerns,” he added.