Pimco's pay in London was lower last year than a decade earlier
The golden age of pay at Pimco, in London at least, may have passed. Pimco's London office still pays well, but not as well as it paid in 2013.
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Accounts released last week on Companies House for Pimco Europe, the asset manager's London entity, show that in 2023 the company employed 394 people and that, when social security and severance pay are excluded, it paid them an average of £501k ($658k) each.
This was more than the £488k per head that Pimco Europe paid on a similar basis in 2022, but less than the £594k Pimco was paying its London people a decade ago.
What occurred? It might be that Pimco's 394 London employees in 2023 were relatively skewed towards junior and admin staff, and that its 284 people in 2013 were mostly portfolio managers. It might also be that passive investors have replaced expensive discretionary stock pickers. Pimco didn't break out the split a decade ago, but last year its London team comprised 141 salespeople, 153 administrators and just 100 investment managers.
Net profit at Pimco Europe fell 27% last year to £91m. However, Pimco's 394 people in London still generated an average £231k in net profit per head, versus £225k in 2013.
Pimco said its turnover fell slightly in Europe last year as assets under management fell across the wider Pimco Group. Expenses rose as sterling strengthened against the dollar and as staff costs increased.
Some staff members at Pimco Europe are paid carried interest, which will in future likely be subject to a higher tax rate. Managing directors there receive a long term incentive payment, which accrues every year and pays out at the end of a period if they're still around. Employees participating in the group equity plan receive stock which vests in three tranches in years three, four and five.
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