Investor rebellion rumbling over executive pay at Man
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 (£8.8m) last year, despite shareholder return diving by 58 per cent.
Ahead of Man’s annual meeting on 9 July, shareholders and advisory bodies were reviewing the firm’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 – despite tumbling profits and a 37 per cent decline in funds under management.
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.
“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,” said Robert Talbot, Royal London Asset Management’s chief investment officer.
Last month Man Group, the world’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’s share price last night was 262p, nearly 60 per cent lower than a year ago.