Woodford IM scraps staff bonuses

Favouring flat salary scheme

Laura Dew
clock • 2 min read

Neil Woodford has decided to permanently abolish staff bonuses at his firm Woodford Investment Management as he believes they can "distort behaviour".

According to The Times, the UK equity manager has put all staff on a flat salary instead of paying bonuses.   The rules, which came into force on 1 April for the firm's 35 staff, apply to all parts of the business including fund managers and analysts. However, salaries were increased so staff were no worse off under the new system and the change is believed to be cost neutral.  Woodford staff were given the option of staying on the previous pay arrangement but all opted for the new one. In its most recent results for the year to 25 March, shortly before the new scheme came into force,...

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