Chart of the day, hedonic treadmill edition

By Felix Salmon
December 10, 2009
hedge fund compensation report. The first shows how much people get paid, by job title:

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Here’s my favorite pair of charts from David Kochanek’s latest hedge fund compensation report. The first shows how much people get paid, by job title:

compensation.jpg

and the next shows how happy they are, also by job title.

happiness.jpg

Quite the inverse relationship, it seems! The accounting types get paid less than anyone else, but are also much happier with how much they’re paid than anyone else. Meanwhile, the portfolio managers and COOs, who get paid more than anyone else, are generally pretty unhappy people. Indeed, overall, a whopping 61% of the people in the hedge-fund industry are unhappy with their jobs.

Of course, it comes as no surprise to see the lowly analysts at the bottom end of both charts. But maybe people might (or should) be much less keen to become hedgies if they knew that only one in three hedge fund managing directors is actually happy with their lot.

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Comments
2 comments so far

what is the comp / satisfaction level of hedge fund employees who lost their jobs between 2008 and 2009?

Posted by q_is_too_short | Report as abusive

http://en.wikipedia.org/wiki/Cognitive_d issonance#Boring_task_experiment

‘When asked to rate the boring tasks at the conclusion of the study (not in the presence of the other “subject”), those in the $1 group rated them more positively than those in the $20 and control groups. This was explained by Festinger and Carlsmith as evidence for cognitive dissonance. The researchers theorized that people experienced dissonance between the conflicting cognitions, “I told someone that the task was interesting”, and “I actually found it boring.” When paid only $1, students were forced to internalize the attitude they were induced to express, because they had no other justification. Those in the $20 condition, however, had an obvious external justification for their behaviour, and thus experienced less dissonance.[7]‘

Posted by hlob | Report as abusive
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