Man Group puts cap on exec bonuses
The Man Group, the largest publicly traded hedge fund firm in the world, is imposing its own bonus cap for top executives.
Annual cash bonuses will now be capped at 250 per cent of salary, Man said in its annual report released on Monday. The fund manager also said it would not pay any bonuses to its top managers for last year, when money outflows continued to hurt the business.
The firm has been under pressure for continuing to pay bonuses even as clients withdraw money. In the three months to December 31, Man's funds reported a sixth consecutive quarter of cash withdrawals. Assets under management fell 2.4 per cent to $US57 billion at the end of December. The company reported a loss of $US745 million last year, compared with a profit of $US187 million a year earlier.
The "2012 remuneration reflects the deterioration in company performance," Man wrote. "The new plan will increase transparency and alignment with shareholders."
Emmanuel Roman, who took over as chief executive last month after Peter Clarke retired, received a base salary of $US1 million for last year and will not receive a pay increase in his new role.
Under the plan, Man also plans to award deferred bonuses only after a three-year assessment of the performance of the executive.
Excessive banker pay has become a contentious issue worldwide and the EU is seeking to limit bonuses for many bankers to the equivalent of their annual salaries.