Woodford scraps staff bonuses

Favouring flat salary scheme

Laura Dew
clock • 2 min read

Neil Woodford has decided to permanently abolish staff bonuses at his firm Woodford Investment Management as he believes they can "distort behaviour".

According to The Times, the UK equity manager has put all staff on a flat salary instead of paying bonuses.   The rules, which came into force on 1 April for the firm's 35 staff, apply to all parts of the business including fund managers and analysts. However, salaries were increased so staff were no worse off under the new system and the change is believed to be cost neutral.  Woodford staff were given the option of staying on the previous pay arrangement but all opted for the new one. In its most recent results for the year to 25 March, shortly before the new scheme came into force,...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on UK

UK dividends plummet by 8.1% in Q3 as mining sector struggles
UK

UK dividends plummet by 8.1% in Q3 as mining sector struggles

While mid-caps grow

Linus Uhlig
clock 24 October 2024 • 2 min read
Octopus Investments: UK small-caps offer once-in-a-cycle opportunity
UK

Octopus Investments: UK small-caps offer once-in-a-cycle opportunity

Higher potential dividend yields

Beth Brearley
clock 09 October 2024 • 2 min read
Deep Dive: UK dividend opportunities no longer limited to just the FTSE 100
UK

Deep Dive: UK dividend opportunities no longer limited to just the FTSE 100

Discounted valuations cannot persist

Eve Maddock-Jones
clock 27 September 2024 • 4 min read
Trustpilot