Charles Stanley ties pay to profits in new award scheme

WEALTH firm Charles Stanley is offering some fund managers up to 5% of the company in return for hitching their pay to profits.

The deal, which has been in the making for two years, is designed to put staff on the same page as shareholders after dozens of different pay deals over the years created a messy system of costs which were damaging the group.

“It’s been difficult but that’s because I’m an eternal optimist. I thought I would get it done in 12 months and it’s taken 24 months There are 70-odd different arrangements, so you’re having to enter discussions with dozens of individuals. It’s taken heck of a long time,” said chief executive Paul Abberley, who also described the agreement as marking “a major milestone in the continued turnaround of the group”.

Under the plan, which takes effect in April, pay will be based on profits rather than revenues.

In return, the 125 or so fund managers directly employed by Charles Stanley will be given 2% of equity in 2020 and a further 3% if they hit performance targets. That’s in exchange for “less attractive contractual terms” than they had before.

The other 125 fund managers at Charles Stanely who are self-employed will be paid a base salary predicated on a percentage of revenues but they receive no shares in the company.