About six of 10 private equity firms have either frozen salaries or are considering doing so, according to a report written by the research firm Preqin and reported in Financial News. Specifically, 38 percent have held salaries in place, while 22 percent are thinking about it.
"The salary freezes are more common at the top," Tim Friedman, a spokesman for Preqin, told Financial News. Junior staff are getting raises because they have less carried interest, "so they need salary increases to motivate them."
Meanwhile, 43 percent of PE firms are cutting bonuses, with the average decline coming in at about 40 percent. Another 43 percent are increasing bonuses, though, by an average of 21 percent.
Fewer than half - 26 percent - have either cut staff or are considering cuts.
You can see a PDF of Prequin's report here.