Fund buyers have identified clear advantages and disadvantages of offering bonus schemes for investment staff, as they respond to Neil Woodford's decision to move to a flat salary approach at his firm Woodford Investment Management.
Woodford (pictured), founder and fund manager at Woodford IM, has made the decision to scrap staff bonuses in favour of flat salaries. The thinking behind the move is it will help staff to avoid short-termism, recklessness and discourage misconduct. At Woodford IM, salaries have been increased so staff are no worse off under the new system and the change is believed to be cost neutral. Staff were given the option of staying on the previous pay arrangement but all opted for the new scheme. Commenting on the decision, Woodford IM chief executive Craig Newman said: "While bonuses are ...
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