Jupiter offers incentives to curb manager exodus
The major new incentive scheme revealed by Bonham Carter, joint chief executive at the UK investment house Jupiter, will allow staff to earn up to a 25% equity interest in the increase in Jupiter's value as well as a share in annual profits
All 44 Jupiter fund managers as well as over 300 of the rest of the staff have signed up for the new deal.
But Jupiter's owner Commerzbank has structured the deal to avoid being trapped into the kind of substantial payouts that made multi-millionaires of Duffield and top managers like Bonham Carter himself when the German bank bought out the staff's earlier 25% last year for 500m (€803.6m).
That deal generated a fortune because Duffield had persuaded Commerzbank to pay out mostly on the basis of profits generated in a single year. This time round the incentive scheme is based on profit growth on a rolling four-year basis.
Philip Gibbs, one of Jupiter's top managers, said: "This deal will ensure that fund managers remain highly motivated and is definitely one of the most competitive schemes in the fund management industry."
Bonham Carter pointed out that fund managers would receive payments linked to their own individual investment performance as well as overall company results. However employees have to "pay to play" by chipping their own money into the scheme. "Employees have demonstrated their own confidence in Jupiter's future by investing meaningful sums of their own money in the new scheme," said Bonham Carter.
