William M Mercer has joined Aon Consulting by questioning Paul Myners' proposals that UK trustees should receive payment.
In a formal response to the review, Andrew Kirton, head of Mercer’s UK investment consulting division, said that direct remuneration for trustees is “not necessarily desirable to incentivise or motivate them.”
“From our experience, the vast majority of trustees are diligent but may lack the necessary time or support from their employer in order to perform to the most effective level,” he said.
Kirton added that trustees should, as a right, be allowed sufficient time away from their other duties, and have their expenses paid.
Regarding fees for external research and broker services, Kirton added that currently trustees cannot readily identify the true total costs of management.
While we are not entirely certain that Myners’ proposal will have the desired effect, we think that it should remain as it stands, and the investment community should be given every encouragement to pursue its underlying objectives,” he said.
“In the meantime, we await with interest the outcome of a study, just commissioned by the Fund Managers’ Association, which will allow the full implications of this change to be thoroughly considered.
By Janet Du Chenne
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