How Much Should Pension Funds Pay Their Own People?
Keith Ambachtsheer looks at the compensation conundrum.
BY Caroline Cakebread | February 6, 2012
Canadian Investment Review founder, Keith Ambachtsheer, is asking one question that is on the pension industry’s mind right now: how much should pension staff get paid? Compensation is a key question today as pension funds seek to attract the best and brightest investment talent in a highly competitive salary environment. Ambachtsheer’s paper, “How Should Pension Funds Pay Their Own People” tackles the tricky subject of compensation strategies among pension funds, drawing parallels between the corporate say on pay debate and the internal compensation question for pension funds.
For pension funds, the most difficult part is the design of an effective pay-for-performance scheme in the investment function. Ambachtsheer looks at how the Canada Pension Plan Investment Board has handled this challenge, and comments on a number of issues requiring further study and resolution. Download the full paper here.