| LONDON, March 18
LONDON, March 18 Man Group is to cap
future cash bonuses for its senior executives, the hedge fund
manager said in its 2012 annual report published on Monday.
Man said that short-term annual cash bonuses, which were
previously uncapped, would be limited to 250 percent of salary
for executive directors after discussions with shareholders.
The firm is also paying no bonuses to top executives for
The change in policy on bonuses comes under new chief
executive Emmanuel Roman, who took up his job last month and is
trying to turn around the fund firm.
Man has suffered from poor performance from its flagship
computer-driven fund AHL and has experienced net customer
outflows in every quarter for the last four years, apart from
two quarters during the first half of 2011. Its shares have
fallen by two-thirds since the start of 2011.
It also follows political pressure to cap bonuses for senior
executives in the finance industry after the excesses of the
After reaching a deal at the end of last month to cap bank
bonuses at the same size as base salaries, or twice basic if
backed by shareholders, some politicians are now turning their
attentions to other areas of finance, including hedge funds.
Last year Man came in for criticism from small shareholders
over its pay, particularly former CEO Peter Clarke's nearly $7
million pay package.
The annual report showed Roman was paid just over $1 million
for 2012, while Clarke received just under $1 million.
Man also said that 80 percent of long-term deferred bonuses
would be determined by financial metrics such as net client
flows and investment performance. Under the plans, executives
could forfeit bonuses due to misconduct or misstatement of
"The board has also recognised that the current remuneration
structure had become overly complex with a resulting lack of
transparency to shareholders and reduced clarity to executives,"
the report said.