The Big Question

THE BIG QUESTION

We ask industry experts.... Under what circumstances is it acceptable to curb pay in the financial sector?

David Norman, managing director and co-founder, TCF Investment Pay should be related to value being created (and ideally value for customers). Thus at any time when value is not being created then a curb is acceptable. There are still too many examples of pay for ‘turning up' rather than pay for value add. Fund management is an interesting case study: performance fees (managers' pay) seem most often not to be aligned with customer value creation - largely because the base fee before performance added is too high. The manager can only win. Total Expense Ratios for retail mutual funds hav...