Fund groups team up to attack 'unjustifiable' pay packages

Fearful of shareholder rebellion

Britain's largest asset management firms have united against 'fat cat' pay deals amid fears over the government's planned changes to corporate governance.

According to The Sunday Times, 13 asset managers, who are collectively manage £9trn worth of assets, are set to attack salaries and bonuses. Fund groups including Aberdeen Asset Management, HSBC Global Asset Management, Schroders and M&G Investments agreed the deal at a meeting of the Investment Association on 18 January. Speaking to The Sunday Times, one unidentified fund manager said: "We are definitely taking a tougher stance than we have in previous years. We won't be able to wave through unjustifiable pay deals. "The last thing we want is government intervention as it could pr...