Investor rebellion rumbling over executive pay at Man

<!--StartFragment--> INVESTORS in hedge fund manager Man Group could demand that the company revise its bonus scheme, after revelations that chief executive Peter Clarke was paid $14.4m (&pound;8.8m) last year, despite shareholder return diving by 58 per cent.<br /><br />Ahead of Man&rsquo;s annual meeting on 9 July, shareholders and advisory bodies were reviewing the firm&rsquo;s annual report, which showed that Clarke received a $6m cash bonus on top of his $920,000 salary, and $7.4m in shares and options &ndash; despite tumbling profits and a 37 per cent decline in funds under management.<br /><br />Man defended the payout, saying the basis for remuneration had remained the same year-on-year, leading some in the City to question whether the targets for bonuses had been too easy all along.<br /><br />&ldquo;If a scheme gives these types of payouts given the performance delivery over the year, one has to question whether it is fit for purpose,&rdquo; said Robert Talbot, Royal London Asset Management&rsquo;s chief investment officer.<br /><br />Last month Man Group, the world&rsquo;s largest hedge fund manager by assets, reported a 40 per cent drop in pre-tax profits to $1.2bn for the year to 31 March. Man&rsquo;s share price last night was 262p, nearly 60 per cent lower than a year ago. <!--EndFragment-->