UK - Attempts by senior executives at leading fund management firms to regain investor confidence are being hampered by middle ranking staff, a new study claims.
The report – compiled by KPMG International in association with think-tank Create – outlines how senior executives are restructuring their businesses to address investor concerns.
But it claims these efforts are being hampered by middle ranking fund managers who rely on “golden handcuffs” and guaranteed bonuses – a practice which would be unacceptable in the companies in which they invest money.
The report – based on interviews with senior executives at 300 companies in 29 countries – found “emotional disconnect” between executives and their staff, and urged a change in mindset.
Principal author, Create’s chief executive Amin Rajan, said two-thirds of companies were committed to “significant change” but of these onlyone in five had the support of staff.
KPMG global head of investment management and funds David Ledster said fund management firms had taken “notable strides” in addressing difficult strategic areas but the pace of advance was variable.
He said: “New ways of thinking are more important than new ways of working. Success in individual firms rests critically on a huge mindset shift throughout the workforce which has hitherto been entitled to many things that were unrelated to personal merit.”
The report – Restoring Broken Trust – claims strategic changes which disturb old entitlements are viewed with suspicion.
It concludes that business leaders have a “challenging” task in reshaping these attitudes.
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