Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Pay Cuts Hit a Fund Company Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, March 20, 2009

Pay Cuts Hit a Fund Company

Reported by Neil Anderson, Managing Editor

The fund industry, and the broader financial world, continues to adjust to the recent market turmoil. On Friday Principal Financial spokeswoman Susan Houser confirmed that the Des Moines, Iowa-based insurer is "temporarily reducing salaries for employees, management and the Board of Directors" by two to ten percent. Principal's mutual fund unit will be affected.

"This impacts all business units," Houser told MFWire.

Houser stressed that the expense reduction (which also includes a reduction in paid time off) is unrelated to Moody's downgrading earlier this week of Principal's life insurance operation.

"This action is not unique to Principal ... [The Moody's] action reflects the negative outlook that all four U.S. rating agencies have on the entire North American life insurance sector," House stated. "The Principal continues to demonstrate strong fundamentals, including: a diversified business mix ... strong capital and liquidity positions ... [and] limited exposure to certain product lines, such as variable annuity with guarantee riders, which can create capital stress in dysfunctional equity markets."

According to Houser, Principal's expense reductions "are very meaningful in reducing the revenue gap."

The move follows staff reductions Principal made in December (see MFwire, 12/10/2008). 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use