Rewarding and retaining fund manager talent: What is the right balance?

Aberdeen and Standard LIfe set aside fund manager bonus retention pot

Over the past year, we have seen a sustained shareholder backlash targeted at asset management firms as investors call for 'excessive' remuneration packages to be reviewed or revoked, amid scrutiny from the government on wider 'fat cat' pay.

But the problem asset managers face is keeping shareholders satisfied that senior management are not receiving inflated or unfair salaries, while also trying to retain talented individuals. The departure of a 'star' fund manager, or worse the entire team, can be extremely damaging. For example, when George Godber and Georgina Hamilton left Miton last year, investors in their UK Value Opportunities fund exited in waves and assets under management in the fund have shrunk by £600m to £280m as at 31 March 2017. Update: Schroders shareholders approve remuneration policy at AGM Miton lat...