Mergers always fuelled the recruitment market

The imminent merger between the activities of Ixis asset management and Natexis does not make happy. Managers will logically be found on the market of labour at the end of the traditional hunting duplicates. "Mergers always fuelled the recruitment market." "In the case of the unlikely reconciliation between Ies Natexis and Ixis asset management activities, potential departures on the French market could be more than offset by new hires to ensure the development of the new Group International", explains Nicolas Manset, partner in charge of the financial sector at RussellReynods Associates, a recruitment firm specialized on the leaders and executives.

Long franco-français, collective management recruitment market is is internationalized with the development of societies beyond their borders. "These are particularly senior managers who export from France, including Geneva or London." To assist managers in Paris is, with the exception of professionals, including expatriates, working in countries such as the Germany or Italy. "When a manager has worked in London where the conditions are often more attractive (salaries, assets...), it is very difficult to return to France", explains Renaud Pechoux, manager of the Department "City" of Michael Page Executive. "It's just a myth to say that only French managers operating in very expert techniques to export well." "Thus, found in London of many French managers working on European actions, among managers of traditional assets or funds of arbitration", adds Nicolas Manset.

France, small management companies they seduce and attract a large number of managers. They come looking for freedom which sometimes missed them in large groups. It is thus created some 30 shops per year since 2002. "The major networks asset managers achieve very rarely hire managers from small structures." "However, they continue to attract managers who wish to more margin for manoeuvre and attempt an entrepreneurial adventure", says Thierry Mageux, Director of banking and insurance of Robert Half France.

All, small or large, are facing a shortage of managers on complex expertise (securitisation, structured credit, bonds high performance markets emerging, multi-management...), which exerts a pressure increase these wages. Some Fund experienced fund managers can expect "packages", bonus and salary, up to 450,000 euros.

Asset managers are reluctant to communicate on the remuneration of their managers and remain vague on the methodology for determining. Ebruitées, these confidential data on wages may indeed destabilizing teams and create tensions with other entities of the group when the Corporation is part of a financial conglomerate. Exceptions however, as the activist Hermes Fund, which applies to him even the transparency requirement that he asked the companies in which it invests.

A system become complex

"The pay system has significantly refined and made in asset managers in striving to be the most objective possible." "Very different according to the actors, it is a real matter of concern for leaders in a context of strong competition between companies to attract talent," says Nicolas Manset. Salary and Manager bonus are thus related both to the profitability of his employer (rising of its outstanding including), as well as the performance generated for the client. It can be relative, for example, a goal of classification assigned to Manager, or measured by indicators such ratio Sharpe ratio (excess return of a portfolio risk-free rate), or information which is not without danger to the investor. Indeed, through the use of derivatives, a manager can manipulate and enhance its "Sharpe ratio" and therefore one of the bases, in theory objective, to establish his compensation...

A good way to better align the interests of the client and the Manager is that it invest him also in its Fund, as is the case in the funds of arbitration (see below). Another solution, the "performance fees" that will affect a Manager if it exceeds certain objectives in terms of performance , grow relatively slowly in Europe, particularly for the mandates granted by institutional investors. According a study by Watson Wyatt, they are better accepted in countries like Britain, the Sweden or the Netherlands, in Germany or Switzerland. Overall, only 13 of institutional management companies have recourse. It depends on them to discipline those who grow their money