Tepid flows, debt turmoil to hit bonus payouts to fund managers

Mutual fund (MF) employees may take home much lower bonus payments this year with the debt turmoil, tapering of equity flows, and regulatory changes all eating into fund houses’ earnings. 

Bonuses this year are expected to be in the range of 10-50 per cent of annual pay for good performers. Debt fund managers caught in the debt turmoil and equity fund managers who have significantly underperformed the benchmarks may end up getting no bonus at all.

Last year, it ranged from 40-60 per cent of annual pay, with payouts for top-performing fund managers close to 100 per cent. The generous payout was