With the rise of remote work, more investors are looking into remote investment positions to manage their portfolios. However, when it comes to investment performance, higher salaries don’t necessarily translate to better returns. This article analyzes remote investment salaries and their correlation with actual investment results.
Remote investment positions offer high salaries
The job posts included in the reference documents show that remote investment positions can offer very lucrative salaries. For example, the quantitative portfolio manager role advertises an open salary, while having a $1 million past performance requirement. With remote work flexibility and high earning potential, it’s no wonder these roles are in demand.
Higher salaries don’t directly motivate better performance
However, research by Gallup, Judge et al. and others has shown minimal correlation between salary and job performance or satisfaction. Once basic needs are met, increased pay has diminishing returns on engagement and productivity. Employees focused solely on external rewards like money can actually become less intrinsically motivated.
Money-motivated investors underperform intrinsically motivated ones
The same holds true in investing. Investors who are purely extrinsically motivated by profits tend to underperform those who enjoy the work itself. Passionate investors with curiosity and learning mindsets are better equipped to outresearch and outperform the market.
Cultural factors play a role in money motivation
It’s worth noting that money motivation also depends on cultural context. Asian cultures tend to value financial achievement more than Western ones. So the demotivating effects of high salaries may vary across different societies.
In summary, while remote investment salaries can be lucratively high, increased pay does not directly translate to better investment returns. Employers should focus on hiring intrinsically motivated candidates rather than using money as a key motivator.