Merrill Lynch gives incentives boost to fund managers for outperformance

Merrill Lynch Investment Managers (MLIM) has introduced a remuneration system for fund managers designed to boost incentives to deliver outperformance. The scheme calculates annual bonuses according to assets under management, relative fund performance and value generated for MLIM. While basic salaries have remained in place, more than 50% of fund managers' income typically comes from annual bonuses. Charles Prideaux, head of equity products for MLIM EMEA Pacific, said the most important part of the new scheme is that bonuses are linked to outperformance over one, three and fiv...