Insight gives more staff stake in business

Abdallah Nauphal, chief investment officer of Insight Investment, who last week was promoted to deputy chief executive, is one of the latest fund managers to offer nearly all his staff equity in the business.

The shadow equity plan is linked to valuations of Insight Investment, not of parent Halifax Bank of Scotland. Nauphal declined to comment on the precise share of the company owned by staff but said it was between 5% and 10%.

Nauphal said: "It's been in place for a while but we recently expanded the membership to include almost everyone. Obviously, how much you get depends on your contribution."

Large fund managers are coming under pressure to allow employees to tie part of their remuneration to the long-term success of the business. Pension consultants look on these arrangements favourably as they believe it aligns individuals' interests with those of their employer.

The departure of a team in March from Nicholas Applegate Capital Management was partly due to a difference of opinion on the importance of equity ownership. The parent Allianz Global Investors was unwilling to offer staff equity in its investment firms, although it runs a profit-sharing scheme.

With his promotion to deputy chief executive, Nauphal retains his responsibilities as chief investment officer but will lead the development of Insight's strategic business plan. Insight's property team, led by Duncan Owen, is understood to be interested in a management buyout but Nauphal declined to comment.

Insight had 6.8bn (€9.9bn) in property at the end of last year and total assets under management were 95.5bn.