(Bloomberg) -- The world’s largest fund managers, including BlackRock Inc. and State Street Corp., are cutting pay and taking other steps to rein in costs amid market volatility as customers withdraw assets and stay on the sidelines, the Financial Times reported.
BlackRock plans to postpone hiring for more senior roles and fill other available positions with less expensive junior employees, the FT said, citing the company’s chief financial officer. State Street’s pay and employee benefits declined by 15% during the second quarter, the paper said.
T. Rowe Price Group Inc. Chief Executive Officer Rob Sharps said the fund plans to be cautious on which roles are filled for the rest of the year, unless markets improve.
Abrdn Plc has plans to shrink headcount by another 500 roles in the next 18 months after eliminating as many in the past year, but has also announced salary increases for its lowest paid staff, the FT report said.
Jupiter Asset Management Ltd. aims to flatten variable pay by the end of the year amid high costs and customer withdrawals, but said it is being careful to balance shareholder returns with appropriate rewards for employees.
Read more about Wall Street bonuses at risk:
- Wall Street Bonuses Poised to Plunge Following Slowdown in Deals
- UBS CEO Hamers Says Bonuses Will Drop If Deals Don’t Come Back
- Wall Street Bonuses Seen Sliding Up to 40% on Banking Slump
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