LONDON (Reuters) - Man Group’s chief executive has missed out on incentive payments of around $23 million (14 million pounds), the company’ accounts showed, as clients pulled their cash out of the world’s largest listed hedge fund firm during the financial crisis.
Peter Clarke, who took over as CEO from industry ‘godfather’ Stanley Fink in 2007, was granted a shares and options package in 2008 worth around $14 million, dependent on performance, as part of a three-year incentive plan, Man’s report and accounts showed.
The plan matured last March when the package was worthless because Clarke did not hit his targets.
In addition, Clarke was also given a deferred bonus in shares, worth $13.5 million in 2008. However, these had fallen to $4.1 million by the time he was allowed to sell them last year as the share price tumbled.
Clarke’s pay for 2011 dropped 10 percent to $2.9 million, although this still included a $1 million cash bonus “to reward delivery of company performance and strategy.”
Clarke was also awarded just over $4 million in long-term incentive plans, which are dependent on hitting targets in return on equity and fee income growth. This took his total package to just under $7 million, down 30 percent on the previous year.
The figures highlight the difficulties that Man - which has a number of performance targets including goals for funds under management and revenues - has faced since the collapse of Lehman Brothers in late 2008.
The firm, which runs $59.5 billion in assets, has seen clients pull out their money every quarter since the final quarter of 2008, apart from the first half of last year.
It also suffered poor performance from its flagship computer-driven fund AHL in 2009, while its fund of funds unit lost $360 million after investing with U.S. fraudster Bernard Madoff.
Man’s shares have dropped to 144 pence from around 550 pence in March 2008, although this does not take into account the $1.40 shareholders received after Man’s sale of brokerage MF Global.
Editing by David Cowell