UK - Fund managers are having their pay frozen in the current economic climate, a new report shows.
But companies are giving ‘hefty bonuses’ in a bid to retain star players.
Remuneration consultant Monks says that in the current market climate bonuses are for retention rather than performance.
Monks consultant Carolynne Ruffle said: “Companies are freezing salaries and paying out bonuses for the people they want to keep. Retention is still seen as the problem.”
One manager benefiting from such an arrangement was M&G chief executive Michael McLintock who received a bonus of £1.1m this year. Of this, £327,000 was part of his retention payment negotiated during Prudential’s purchase of M&G in 1999.
However, a report by Monks showed a decline in annual packages awarded to equity fund management heads – the average payout fell to £145,000 from last year’s £170,000, according to the remuneration consultant.
Some, though, are not faring too badly as the new 'Sunday Times Rich List' reveals. It includes eight big hitters at investment bank Goldman Sachs - John Thornton, Peter Sutherland, Richard Sharp, Michael Sherwood, Gavyn Davies, Simon Robertson, David Blood and Jon Aisbitt – who are estimated to be worth between £98m-£211m each.
And the list also include Societe Generale Asset Management's Nicola Horlick whose estimated worth is £20m, and Carol Galley, former fund manager at Merrill Lynch Investment Managers, whose estimated worth is £80m.
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