Lord Turner demands overhaul of fund manager bonuses
Outgoing FSA chairman calls for remuneration to be linked to long term performance.
Outgoing FSA chairman Lord Adair Turner has called on fund manager bonuses to be “reconfigured” to encourage a focus on long-term investment.
Speaking at the launch of a latest report from the Group of Thirty financial policy group, Lord Turner (pictured) said fund managers should be persuaded to adopt new bonus rules, but didn’t rule out full regulation.
He said: “Portfolio managers’ bonuses could be conditional on their performance over a defined period; for senior managers, a minimum of three years.
“I think essentially we are talking about moral suasion. I think it is quite difficult for us to get into the area of direct regulation of the private fund managers, but I don’t completely exclude that possibility.”