Canadian Investment Review

How Much Should Pension Funds Pay Their Own People?

Written by Caroline Cakebread on Monday, February 6th, 2012 at 5:56 pm

1260396_black_walletCanadian 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.


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