Fund bonuses will, undoubtedly, be far lower this year, and with that, a number of managers could look to jump ship, Investment News reports.
Putnam Investments recently announced a new compensation program whereby managers will receive their full bonus only if their fund is in the top quartile over the past three years. If a manager does better, they will get even more money on top of their bonus target. If they hit the mid-range, however, they will only get 50% of their bonus. Anyone in the bottom quartile gets nothing.