APG Asset Management Issues Remuneration Guidelines

When a large Asset Manager like APG publishes Remuneration Guidelines in merits special attention given that APG is less conflicted than pure for-profit Money Managers. But the most important question is still waiting for an answer: How much pay is enough? 1 per cent, 10 per cent, 20 per cent (as claimed by 'alternative' fund managers, and this does not even include the basic management fee) or even more as some 'star' hedge fund managers think they are entitled to? As long as the fundamental mistake of believing in the merit of 'incentive-based' compensation is not accepted there will be no end to the ratcheting up of (senior executive) compensation. It is sad that the leading business schools and self-appointed management 'gurus' propagate and foster this myth. Commission-based compensation may work for car salesmen but do senior executives really get dangled carrots in front of their noses in order to do a good job. And why should all the success of a business be attributed to a few (mostly men) at the top of the hierarchy?
(19 Oct 2014)