Mark Lennihan/Associated PressEmmanuel Roman, the new chief executive of Man Group.LONDON — The Man Group, the largest publicly traded hedge fund firm in the world, is imposing its own bonus cap for top executives.
Annual cash bonuses will now be capped at 250 percent of salary, Man said in its annual report released on Monday. The fund manager also said it would not pay any bonuses to its top managers for 2012, when money outflows continued to hurt the business.
The firm has been under pressure for continuing to pay bonuses even as clients withdraw money. In the three months that ended Dec. 31, the Man Group’s funds reported a sixth consecutive quarter of money withdrawals. Assets under management fell 2.4 percent, to $57 billion at the end of December. The company had an annual loss of $745 million in 2012, compared with a profit of $187 million a year earlier.
The “2012 remuneration reflects the deterioration in company performance,” Man wrote in its annual report. “The new plan will increase transparency and alignment with shareholders.”
Emmanuel Roman, who took over as chief executive last month after Peter Clarke retired, received a base salary of $1 million for 2012 and will not receive a pay increase in his new role as chief executive, the firm said.
Under the new remuneration plan, Man also plans to award deferred bonuses only after a three-year assessment of the performance of the executive.
In an effort to bolster profitability, the firm has announced plans to cut costs by almost $200 million by the end of 2013. Overall compensation costs in 2012 were down 23 percent, the company’s report said.
The firm’s shares were down about 0.75 percent on Monday in London trading.
Excessive banker pay has become a contentious issue worldwide, and the European Union is seeking to limit bonuses for many bankers to no more than the equivalent of their annual salaries.