Fund selectors have identified clear advantages and disadvantages of offering bonus schemes for investment staff, as they respond to Neil Woodford's decision to move to a flat salary approach at his firm Woodford Investment Management.
Woodford (pictured), founder and fund manager at Woodford IM, has made the decision to scrap staff bonuses in favour of flat salaries. The thinking behind the move is it will help staff to avoid short-termism, recklessness and discourage misconduct. At Woodford IM, salaries have been increased so staff are no worse off under the new system and the change is believed to be cost neutral. Staff were given the option of staying on the previous pay arrangement but all opted for the new scheme. There are currently no plans to offer staff equity in the business, where ownership is split 6...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
