A survey of money manager compensation by the Association for Investment Management and Research and Russell Reynolds Associates suggests that Canadian money managers are underpaid relative to their peers around the world.

AIMR’s 2001 Investment Management Compensation Survey broke out the results for the United States and Canada separately this year. It also broadened its scope to include the U.K., Hong Kong and Singapore.

The survey found that in 2001, median total compensation for investment management professionals with more than 10 years of experience is approximately US$236,000. This includes a median base salary of US$135,000, an anticipated cash bonus of US$70,000 and non-cash compensation, usually in the form of stock options, of US$20,000.

Additionally, the top 10% of investment managers surveyed with more than 10 years of experience expect to earn approximately US$880,000, with many earning into seven figures.

The survey captured notable differences in compensation levels by country. AIMR members in the U.K. and U.S. are better paid by a wide margin in terms of median compensation, with those in Canada and Singapore reporting “median compensation that significantly trailed their counterparts in other countries”.

The average Canadian money manager made US$108,000 in total pay in 2001, compared to US$178,000 for the survey overall, and US$200,000 for the managers in the top jurisdiction, the UK.

The same holds true for those with at least 10 years experience, where the average Canadian manager earns US$153,000, compared to US$236,000 for the survey overall, and US$295,000 for those from Singapore.

According to the survey, “When looking only at those with more than 10 years of experience, compensation levels across countries are more consistent. The exceptions are investment professionals in Canada, who earn significantly less than their peers with 10 or more years of experience in other countries (35% below the overall median compensation).”

The survey received a 24% response rate, and 21% in Canada, indicating statistical significance. It specifically notes, “The large response in the U.S. and Canada gives us confidence that the compensation data collected in these countries are representative.”

The study also reveals a substantial difference between the compensation of men and women. “Across all levels of experience and in each of the markets surveyed, women earn significantly less than men. In aggregate, women’s median total compensation is 16% less than men’s.”