Fund managers hit out at EU pay curbs

EU proposals to limit fund manager bonuses have been met by a withering reaction from the asset management industry.

Proposals set to be confirmed later this week call for fund managers' bonuses to be restricted to a 1:1 ratio with their annual salary. Some 60% of the variable pay element would be deferred under the plans, and largely paid in units of funds run by the manager, new plans for UCITS vehicles propose. But fund managers have hit out at the plans as "counter-productive" and "foolhardy", according to the Financial Times, with some concerned over the potential for a resultant rise in fixed salary costs. “Where will this stop? Will it go beyond Ucits funds? Will it go beyond the financial...