Nothing to see here.
The Man Group, London’s biggest hedge fund, has scrapped bonuses for its top executives, in the first sign that the City debate over pay has spilled over into the freewheeling hedge fund industry.
Manny Roman & Co. will also have to make do with less going forward—probably less than this new policy countenances, once the EU gets around to extend those bank bonus curbs—and to wait longer for it, too.
Annual cash bonuses will now be capped at no more than 250 percent of salary, Man said in its annual report released on Monday….
Under the new remuneration plan, Man also plans to award deferred bonuses only after a three-year assessment of the performance of the executive.
Meanwhile, Lazard CEO wants you to know that he's sharing in the bank's pain. To a degree.
Lazard Ltd. paid Chairman and Chief Executive Kenneth M. Jacobs $8.5 million in 2012, down 5% from the prior year, and set new pay-clawback and other compensation-related policies for its top executives….
In October, Lazard revealed plans to shave $125 million off operating expenses, mostly by cutting staff.
Mr. Jacobs' employment contract was renewed in October through March 2016, according to the proxy. The board affirmed its decision to keep him as chairman and CEO with an independent lead director in October, according to the proxy. His new contract eliminates some golden-parachute features, including the reimbursement of taxes for severance paid in a change in control, the proxy said.
Similar provisions for paying taxes in a change of control were also eliminated for Lazard's other executives.
Man Group drops executive bonuses [FT]
Man Group Imposes Limits on Cash Bonuses for Executives [DealBook]
Man to limit cash bonuses permanently [FT]
Top Man Execs. Get No '12 Bonus As Firm Imposes Limit [FINalternatives]
Lazard Tightens the Reins on Pay [WSJ]