THE WORLD’S biggest listed hedge fund Man Group yesterday confirmed plans to cap annual cash bonuses at 250 per cent of salary for executive directors.
It said the move, which comes at a time when new chief executive Manny Roman is attempting to turn the business around, would “increase transparency and alignment with shareholders whilst reducing the complexity and likely quantum of awards”.
Under the new remuneration plan, Man will also award deferred bonuses only after a three-year assessment of the performance of its executives.
It said its remuneration overhaul would put it in line with forthcoming legislation from the Department for Business, Innovation & Skills.
The overhaul, laid out in its annual report yesterday, will also remove the group’s long term incentive plan (LTIP).
The report shows the group scrapped cash bonuses for Roman, Peter Clarke – the outgoing chief executive who left last month – and fellow outgoing finance director Kevin Hayes completely last year.
Clarke also received nothing from a 2009 LTIP, which was judged on the performance of the company over the following three years.
The report shows Roman received a $1m (£662,000) a year base salary which will not rise even though he has been promoted to chief executive.
Hedge funds are also currently in the sights of European politicians who want to cap and defer cash bonus awards.