Woodford berates rivals’ ‘frustratingly rife’ short-termism

Woodford berates rivals’ ‘frustratingly rife’ short-termism

Renowned fund manager Neil Woodford has criticised the industry for what he described as “frustratingly rife” short-termism, in his support of the movement towards more “appropriate” ways of paying top executives.

Mr Woodford, who is one of the most prominant names in the UK fund management industry, has said top executives should be held more accountable for the long-term performance of their companies.

His comments come as part of a report from think tank the High Pay Centre, which sets out to overhaul the way executives of companies are paid, arguing shareholder interests are often not served by top bosses who “over-compensate” themselves.

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Lending his support to the group, the founder of Woodford Investment Management said he does “everything he can” to ensure the executive and board of a company are aligned with shareholders in order to generate long-term value.

But he said: “Regrettably, this view and approach is not shared by many in the UK investment industry and I believe the problem is getting worse.

“Many fund managers do not behave or think like owners, because they are borrowing stock rather than investing in it.”