A survey by the CFA Institute finds that equity portfolio managers are best paid among its members.

The study examined compensation levels of CFA Institute members who are portfolio managers, research analysts, investment consultants, and other executives at an array of investment management and financial organizations worldwide. The results were based on survey responses from more than 13,500 CFA Institute members from 11 countries.

It notes that at all levels of experience, U.S. portfolio managers (equities) reported a considerably higher median total compensation (US$456,000) than the other occupations. In the U.S., the three highest compensated positions at all levels of experience are portfolio managers (equities) (US$456,000), followed by investment bankers (US$275,000) and then sell-side research analysts (US$195,000). Buy-side research analysts (equity and fixed income) fall in the middle of the pack at all levels of experience.

It also finds that while U.S. investment professionals’ compensation varies by occupation and years of experience, bonuses generally account for more than 25% of total compensation for investment executives and buy-side professionals, and more than 50% for sell-side research analysts, traders, and sales positions. Respondents also reported that a majority (72%) saw their total compensation increase from 2005 to 2006 and that their cash bonuses were largely determined by individual performance.

The pattern for cash bonus is also affected by years of experience. There is little variability in median cash bonus for those with less than five years of experience. However, the gap widens at five to 10 years of experience. At all levels of experience, portfolio managers (equities) (US$200,000) and investment bankers (US$185,000) reported cash bonuses that are more than double that for most other occupations.

The survey also notes that median total compensation is correlated with years of experience within organizations. For example, at investment management firms, median total compensation for U.S. buy-side research analysts (fixed income) is US$128,000 for those with less than five years of experience, versus US$220,000 for those analysts with five to 10 years of experience, and US$285,000 for the same group of analysts with more than 10 years of experience.