Fund manager pay to change

NEW European rules covering fund managers include strict changes to salary structures in the industry that few are aware of, PwC said yesterday.

The Alternative Investment Fund Managers Directive will make hedge and private equity funds restrict cash bonuses, paying at least half in shares.

Between 40 and 60 per cent of variable pay must be deferred for three to five years and firms must disclose senior management pay, AIFMD says.

“Many thought they’d escaped the brunt of banking pay regulations, but they’re coming back to bite,” said PwC reward director Tim Wright.