Before we take a deeper look at the salaries of a hedge fund manager, we should start by taking a look at the role he plays in office. Many people invest in different investment plans especially with the hope that they will have a better life in retirement. It is this manager who is entrusted with the care of such funds.

By being entrusted with the care of the invested funds, the manager is snot only in charge of keeping the money safe, instead, he or she has to ensure that monies invested are not lost but since the investors expect some favorable return on their investment over the long term, the manager is charged with the responsibility of identifying investment opportunities that have good profit margins and to have the funds invested in the same.

This can be a tricky affair because if the manager picks the wrong investment opportunities and for some reason the funds are lost, he is held responsible. He must therefore be very wise in his decision making since the decisions he makes have a great bearing on the lives of the many people who have their money in his or her care.

The hedge fund manager salary obviously varies form one organization to the next and it is up to the members to sit down and draft a salary scale for their managers of course with some critical guidelines that have to be adhered to. One thing is for sure though and that is the fact that the salary scale should have a direct relation to the magnitude of the fund.

This simply means that managers in charge of very huge funds are only expected to earn more since the responsibilities are equally too much.. This is a basic factor in the determination of any remuneration regardless of the sector in question.

As a performance based kind of job, some funds have decided to include either commissions or payments based on the size of the funds being managed. The commissions often act as incentives that are supposed to inspire the manager to perform even better. Of course the commissions come in addition to some basic or retainer amounts and allowances to add on.

Form the investor point of view; it is important to note that investors in the hedge fund are always charged some fee for the management of their investments. These fees often vary from as little as one percent to anything below five percent for most funds. It is these commissions charged on the investors that will form part of the manager salary as well as take care of other administrative costs.

It is also important to note that there have been complaints from some investors in hedge funds that some fund managers get paid unrealistically high salaries even at times when the funds they are in charge of do not perform any better with the investors seemingly receiving a raw deal. This is a matter that may require a deeper look since there are management structures in any organizations that can deal with such matters.

Author's Bio: 

Erline Herman is an experience entrepreneur that been trying different types of business over the last seventeen years. Now she is going to share with you some of her thought, and what she personally experience in the real world. Today, she is going to discuss interesting topic about hedge fund manager salary. By reading this article, you will have first hand view on how hedge fund manager work, and what could be achieve from their effort.