MutualFundWire.com: A Multinational Asset Manager Freezes Pay For Its Top Earners

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Tuesday, January 17, 2017

A Multinational Asset Manager Freezes Pay For Its Top Earners

A multinational asset manager with operations in the U.S. is freezing pay this year for its top earners.

Richard Mully
Aberdeen Asset Management
Non-Executive Director

UK-based Aberdeen Asset Management [profile] (whose U.S. HQ is in Philadelphia) has frozen salaries across the company for employees who earn more than 75,000 pounds (about $92,450), the board remuneration committee chairman, Richard Mully, reveals in his summary statement in Aberdeen's 2016 annual report. The firm also paid out 40 percent less in 2016 bonuses than it did in 2015. The Financial Times reported on Aberdeen's freeze.

The freeze comes after a tough year for Aberdeen, the FT notes. Aberdeen's before tax profits fell by more than a third last year, and its net revenues fell more than 10 percent. In the 12 months ended September 30, 2016, Aberdeen suffered nearly 33 billion pounds (about $40.68 billion) in net outflows.

Liberum analyst Justin Bates predicts that the pay freeze will make Aberdeen shareholders "quite happy," though he worries about "ructions internally" and possible employee exits.

Though some high earners could be exempt from the freeze, the report does not detail such exemptions.

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