RLAM alters bonus structure for equity managers

Royal London Asset Management has altered the compensation plan for its equity managers to incorporate an element of longer-term performance.

From this year, the bonus plan will no longer be purely based on 12-month performance, but will take into account longer-term numbers. In 2010, compensation will be spilt equally between one and two-year performance - while it will be calculated over one and three years in 2011, again split 50/50. "It is right for fund managers to focus all their efforts on performance, but we also think clients are looking for consistency," Royal London Asset Management CIO Robert Talbut says. "This is a statement of the evolution of our business. We have got some really strong short-term performance...