Despite its reputation for high pay, average salaries at multi-strategy hedge fund major Millennium’s London office fell below £1m ($1.31 million) for the first time ever last year, according to a report by eFinancial Careers.
Newly released financial statements for Millennium Capital Management Ltd reveal that the company employed an average of 972 people in London during 2023, paying a total of £754m, which equites to an average salary of £776,000 per employee – a 31% decrease from the previous year’s figure of £1.1m.
This decline in average pay coincides with an increase in headcount, with the firm hiring 207 new employees last year, either paying them considerably less than existing staff or spreading out reduced compensation across its workforce.
Analysis of the figures suggests both scenarios could be in play. While operating profits dropped to £345m from £392m in 2022, turnover also fell slightly from £1.48bn to £1.41bn, leaving less profit to distribute. Additionally, there was a notable shift in the composition of staff: administrative roles accounted for 47% of the workforce in 2023, up from 44% in 2022, which could also explain the decrease in average pay.
Millennium also operates Millennium Capital Partners LLP (MCP LLP) in the UK, home to its highest-paid partners and top portfolio managers. Compensation at MCP LLP is based on profit distribution. Although the amount available for distribution to partners fell from £224m in 2022 to £189m last year, the average profit allocation per partner increased by nearly 10% to £8.9m with the number of partners decreasing from 14 to 12.
Millennium declined to comment on the figures.
