Henderson Group fund managers get bumper bonus

Adam Hignett
Andrew Formica’s remuneration package dropped to £3.7m
Staff at investment firm Henderson Group saw their bonus pool increase to £144m after seeing a 22 per cent rise in management fees during 2014.

Henderson said the increase in the bonus pool was a reward for strong net flows, investment performance and business performance and marks an 11 per cent rise on last year.

Improvements in performance were accompanied by increased investment in management, client relationships and technology.

The company said it continued to outperform the general market at delivering returns on investment, helping to deliver performance fees ahead of expectations at £83m.

The firm also increased fixed staff salaries to £88m, a 10 per cent rise on last year, partly due to an expanding headcount as the company grew its operations in the US and Asia.

However, the increase in expend­iture still outstrips the eight per cent rise in head count, representing a small increase in base pay levels among existing staff.

Henderson saw gross income from fees climb to £651m over the year, up from £578m in 2013 delivering pre-tax profits of £187.8m in 2014, an increase of 13 per cent.

Chief executive officer Andrew Formica’s remuneration dropped to £3.7m from £4.9m as his long-term incentive payment declined, accord­ing to the report. His base salary remains at £420,000 in 2015, while chief financial officer Roger Thompson’s pay will be raised three per cent to £340,000 pounds.

“We remained vigilant on costs,” said Thompson in a statement. “Despite a rise in total compensation, we saw a reduction in our compensation ratio.”

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