What determines the compensation of the average fund manager? A new study* by academics at Wharton, MIT and Texas A&M universities, says it's not performance. It's assets under management.
Using information from CRSP and Morningstar, the academics assembled a data set covering pay for 450 fund managers across America (but not in New York). They found that the median US fund manager earns $462k, but that the mean average US fund manager earns $1.1m.