Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Prudential to cap manager pay after Woolnough scoops £32m

Prudential to cap manager pay after Woolnough scoops £32m

Prudential is set to introduce a cap on fund manager salaries after fixed income star Richard Woolnough took home £32 million in 24 months.

A report by Sky News details the insurance behemoth’s plans to impose a ceiling on the remuneration of top fund managers at its asset management subsidiary M&G Investments.

It is believed that Prudential has decided to implement the cap after Woolnough, manager of M&G’s Optimal IncomeCorporate Bond and Strategic Corporate Bond vehicles, was paid £32 million between 2013 and 2014.

While both Prudential and M&G declined to comment, it is understood that details of the cap are yet to be finalised and that the terms will only affect new employees.

It is reported that there had been some 'embarrassment' at Prudential regarding the huge bonuses paid to Woolnough in 2013 and 2014, although this does not necessarily indicate that his performance had not justified them.

Prudential has been the subject of media scrutiny over the past few years regarding the amount paid to high-ranking employees, with Woolnough’s bumper package of £17.5 million for 2013 outstripping even that of then-group chief executive Tidjane Thiam, who took home £8.7 million in the same period.

The reports come in the wake of M&G’s 2015 annual results, published 9 March, which detailed a 1% year-on-year slide in operating profit to £442 million.

Woolnough, who manages just under £35 billion across four strategies, saw outflows of £864 million from Optimal Income alone in January as market volatility put pressure on investment funds across the board.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
CIO Tapes 2: two warnings and a lot of optimism

CIO Tapes 2: two warnings and a lot of optimism

Our group of leading asset management CIOs see a lot of opportunities – and overseas investors are buying UK too

Play Wealth Manager Retreat 2017: size isn't everything

Wealth Manager Retreat 2017: size isn't everything

We asked our delegates at the Wealth Manager Retreat what they think about the recent wave of consolidation in the industry.

1 Comment Play CIO Tapes - part 3: 'passive funds are anti-capitalist'

CIO Tapes - part 3: 'passive funds are anti-capitalist'

Citywire recently gathered three of the UK's leading fund investment heads to discuss their hopes, fears and the issues that their jobs throw at them daily.

Read More
Your Business: Cover Star Club

Profile: Kleinwort Hambros' boss on how to manage five banks

Profile: Kleinwort Hambros' boss on how to manage five banks

Welding together Kleinwort and Hambros – two of Britain’s most historic banks, founded in 1786 and 1839 respectively – was always going to be a challenge.

Wealth Manager on Twitter