View the article online at http://citywire.co.uk/wealth-manager/article/a731104
All eyes on pay after Aberdeen forced to explain bonus system
by Eleanor Lawrie on Jan 29, 2014 at 15:05
Johnson also emphasised that asset managers are largely better at self-regulating than the large banks, but don’t always get the credit for it.
David Norman, formerly CEO at Credit Suisse Asset Management and co-founder of TCF Investment, argues the cultural shift described by Johnson has already taken place, with shareholders ready to question guaranteed payouts.
‘There is a kind of societal shift over what is reasonable and what you can’t get away with. A chief executive can’t earn 20 times what their employees do now,’ he said.
‘It used to be if you couldn’t pay the bonus you couldn’t get the right people but now people are thinking, “hang on, if you don’t give us the performance, why should you get the reward?”’
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